UNIVERSITÄT POTSDAM - Prof. Dr. Paul JJ Welfens

Prof. Dr. Paul J.J. Welfens, Jean Monnet Professor für Europäische Wirtschaftsintegration,
Lehrstuhl für Wirtschaftspolitik / internationale Wirtschaftsbeziehungen und
Präsident des Europäischen Instituts für internationale Wirtschaftsbeziehungen (EIIW)
an der Universität Potsdam, August-Bebel-Str. 89, 14482 Potsdam, Tel.: 0331/977-
4614, www.euroeiiw.de
Dr. Andre Jungmittag, Lehrstuhl für Wirtschaftspolitik/Internationale Wirtschaftsbeziehungen
und Europäisches Institut für internationale Wirtschaftsbeziehungen an der
Universität Potsdam, August-Bebel-Str. 89, 14482 Potsdam, Tel.: 0331/977-4609.
Telecommunications, Internet, Innovation and Growth
in Europe and the US*
1. Telecommunications, the Internet and Transatlantic Growth Differentials.................1
1.1 Telecommunications and the Internet....................................................................1
1.2 Telecommunications and Technological Dynamics ..............................................2
1.3 Taking Stock: Transatlantic Growth Differential ..................................................5
2. Theoretical Analysis...................................................................................................10
2.1 ICT Dynamics and Growth..................................................................................10
2.2 Perspectives on Inflation and Growth..................................................................22
3. Innovation, ICT Dynamics and Growth: Theoretical and Empirical Aspects ...........27
3.1 Basic Theoretical Issues.......................................................................................27
3.2. Empirical Links Between Innovations and Output.............................................31
3.3 ICT as a General Purpose Technology?...............................................................35
4. The Role of Telecommunications and the Internet for Trade and Growth ................36
4.1 Telecommunications, Innovation and Economic Growth in Germany................36
4.2 Growth and Employment Effects of an Internet Flat Rate in Germany...............40
4.3 Telecommunications and Foreign Trade..............................................................44
5. Some Long-Term Aspects..........................................................................................47
References ......................................................................................................................50
Appendix: Methodological Issues in Growth Statistics .................................................58
Paper prepared for the international symposium Internet, Economic Growth and Globalization,
August 8-10, 2001, in Duisburg and Potsdam
University of Duisburg and EIIW at the University of Potsdam
*Forthcoming in BARFIELD, C; HEIDUK, G.; WELFENS, P.J.J., eds. (2002), final 2002