UNIVERSITÄT POTSDAM - Prof. Dr. Paul JJ Welfens

More documents

Recommendations

Info

1.08; however, by 1999 the ratio in the US had reached 220:100 while expenditures on hardware and software in Germany were roughly 100 dollars of software expenditures for every 100 dollars spent on hardware (DEUTSCHE BUNDESBANK, 2001). As regards the statistical bias emerging from different methods of price measurement and real output measurement the DEUTSCHE BUNDESBANK (2001, p.43) argues that the German growth gap vis-à-vis the US was reduced by about 0.4 percentage points in the second half of the 1990s; however, the transatlantic growth differential of roughly 2 percentage points in the period 1996-99 remains high. For both the European Central Bank and national policymakers in EU countries it would be important to fully understand the phenomenon of the New Economy. Tab 5: The Growth Contributions of IT Capital and Its Components 16 (1) (2) (3) (4) (5) (6) 1991-99 1991-95 1996-99 1991-99 1991-99 1991-99 IT IT IT HW SW TLC USA 0.94 0.53 1.45 0.50 0.36 0.08 Ireland 0.64 0.38 0.96 0.30 0.12 0.22 Denmark 0.52 0.42 0.65 0.29 0.14 0.09 Netherlands 0.68 0.65 0.72 0.33 0.22 0.13 UK 0.76 0.43 1.17 0.39 0.26 0.11 Portugal 0.43 0.39 0.49 0.18 0.05 0.19 Austria 0.45 0.47 0.43 0.23 0.12 0.11 Spain 0.36 0.38 0.34 0.17 0.06 0.14 Greece 0.34 0.25 0.46 0.12 0.04 0.18 Finland 0.45 0.21 0.74 0.27 0.10 0.08 Belgium 0.48 0.48 0.49 0.23 0.14 0.11 Sweden 0.59 0.38 0.85 0.38 0.13 0.08 Germany* 0.49 0.54 0.45 0.24 0.12 0.13 France 0.41 0.40 0.44 0.20 0.11 0.11 Italy 0.31 0.28 0.35 0.15 0.05 0.11 Notes: IT = HW+SW+TLC = Hardware+Software+Communications equipment. Data in percentage points. * Germany = 1992-1999 Source: DAVERI, F. (2001): Information Technology and Growth in Europe, p. 6.
Tab 6: The Growth Contributions of IT and Non-IT Capital, Labor and Total Factor Productivity, 1991-99 (1) (2) (3) (4) (5) GDP IT CAPITAL NON-IT CAPITAL Labor TFP USA 3.34 0.94 0.42 0.90 1.08 Ireland 6.91 0.64 0.63 1.93 3.72 Denmark 2.87 0.52 0.60 0.34 1.40 Netherlands 2.83 0.68 0.31 1.09 0.75 UK 2.68 0.76 0.37 0.51 1.04 Portugal 2.47 0.43 1.05 -0.35 1.34 Austria 2.33 0.45 1.29 -0.46 1.04 Spain 2.32 0.36 1.10 0.36 0.51 Greece 2.25 0.34 0.65 0.46 0.78 Finland 2.13 0.45 -0.13 -1.05 2.86 Belgium 1.88 0.48 0.68 0.00 0.72 Sweden 1.86 0.59 0.32 -0.28 1.23 Germany* 1.65 0.49 0.56 -0.23 0.83 France 1.64 0.41 0.49 -0.19 0.92 Italy 1.41 0.31 0.82 -0.30 0.58 Notes: Data in percentage points. Column (1) presents GDP (business sector, measured at factor costs) growth rates from 1991-99. Column (2)-(5) present the contributions of employment (hours worked), IT and non-IT capital and total factor productivity to GDP growth. * Germany = 1992-1999 Source: DAVERI, F. (2001): Information Technology and Growth in Europe, p. 7. While the US recorded an acceleration in growth contribution from IT capital, namely from 0.53 in 1991-95 to 1.45 in 1996-99, Germany had a rather flat contribution from IT capital, namely 0.5. Insufficient structural change, the monopoly of telecommunications until 1998, and lack of cheap internet rates (including the refusal of Deutsche Telekom AG (except for the second half of 2000) to offer a flat rate for standard telecommunications users could be main elements in explaining the modest IT contribution in Germany (WELFENS, 2001b, 2001c; WELFENS / JUNGMITTAG, 2001). Comparing the US and the EU it is quite obvious that computer density in the Community is much lower than in the US. Germany reached three-fourths of the US computer density; France was slightly weaker, and Italy, with about one-half of US computer density, was just at the level of Korea in 1999. In the EU only the Scandinavian countries had a computer density comparable to the US. It is noteworthy that Sweden’s tax policy contributed actively to raising computer density by giving firms tax incentives to sell used PCs at discount prices to employees. 17
Page 1: UNIVERSITÄT POTSDAM EUROPÄISCHE W
Page 5 and 6: Summary We analyze the role of info
Page 7: Prof. Dr. Paul J.J. Welfens, Jean M
Page 10 and 11: AT&T has entered the local market v
Page 12 and 13: While telecommunications has been a
Page 14 and 15: There is no doubt that the Maastric
Page 16 and 17: study, based on ICT dynamics with r
Page 18 and 19: 2. Theoretical Analysis 2.1 ICT Dyn
Page 20 and 21: (ICT-using sector) and negative lab
Page 22 and 23: is also included which means that t
Page 26 and 27: In the digital economy the inventor
Page 28 and 29: cases, namely EU computer price red
Page 30 and 31: economy can be built. Facing EU eas
Page 32 and 33: If purchasing power parity holds fo
Page 34 and 35: output growth continuing, finally t
Page 36 and 37: y increasing returns in production
Page 38 and 39: works through better adaptation to
Page 40 and 41: investigations offers a wide field
Page 42 and 43: efficient, indicating that the prem
Page 44 and 45: 4. The Role of Telecommunications a
Page 46 and 47: 38 2 R adj. 0.9970 0.9967 0.9969 0.
Page 48 and 49: number of employees in the second h
Page 50 and 51: good one-half percentage point emer
Page 52 and 53: So flat rate pricing will lead to a
Page 54 and 55: international telecommunications. F
Page 56 and 57: spective Germany seems to be rather
Page 58 and 59: References ACS, Z., AUDRETSCH, D.,
Page 60 and 61: DOSI, G. (1982), Technological Para
Page 62 and 63: JONES, C.I. and WILLIAMS, J.C. (199
Page 64 and 65: ROMER, P.M. (1990), Endogenous Tech
Page 67 and 68: Appendix: Methodological Issues in
Page 69 and 70: Tab A3: ICT Sectors in Europe and t
Page 71: Tab A6: Sectoral Developments in th

UNIVERSITÄT POTSDAM - Prof. Dr. Paul JJ Welfens

Create successful ePaper yourself

Delete template?

Save as template?