## You Say You Want A Revolution: Information Technology and Growth

_IMF Working Papers, April 1, 2002_

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## Bibliographic details
- Authors: James Morsink, Markus Haacker
- Published: April 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451849165.001

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### Summary and key findings
- The information technology (IT) revolution is contributing to labor productivity growth through:
  - increases in the levels of IT capital per worker; and
  - total factor productivity (TFP) growth in the production of IT equipment.
- Main research question: whether IT is contributing to TFP growth more generally.
- Empirical findings using data on IT expenditure and production for a broad sample of countries:
  - A positive, large, and significant effect of IT expenditure on the acceleration in TFP in the late 1990s.
  - A smaller—and significant—effect of IT production on TFP acceleration.
  - Evidence that the impact of IT expenditure on TFP growth increases over time, suggesting that spillovers materialize gradually.
- Projection:
  - The increase in IT expenditure across industrial countries during 1995-2000 will eventually lead to an average increase in TFP growth of about one-third of 1 percent per year.

### Data, scope, and timing
- Data sources used: IT expenditure and production for a broad sample of countries (as described in the paper).
- Periods emphasized:
  - late 1990s (TFP acceleration observed);
  - 1995-2000 (period of increased IT expenditure driving projected TFP gains).

### Research contribution and implications
- Establishes that IT affects productivity both via capital deepening (IT capital per worker) and via TFP in IT equipment production.
- Provides evidence for economy-wide TFP spillovers from IT expenditure that accumulate over time.
- Quantifies a medium-term aggregate effect: an eventual average TFP growth increase of about one-third of 1 percent per year attributable to the 1995-2000 rise in IT expenditure across industrial countries.

### Publication and metadata
- Authors: James Morsink, Markus Haacker
- Date: April 1, 2002
- Series: Working Paper No. 2002/070
- Issue: 070
- Volume: 2002
- Pages: 19
- DOI: https://doi.org/10.5089/9781451849165.001
- Stock No: WPIEA0702002
- ISBN: 9781451849165
- ISSN: 1018-5941

*IMF Working Papers — You Say You Want A Revolution: Information Technology and Growth*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/you-say-you-want-a-revolution-information-technology-and-growth-15787_