Technological change and the structure of the economy: the determinants and economic impact of ICTs

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Guerrieri, Paolo
Luciani, Metteo
Meliciani, Valentina
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Abstract
In this paper we investigate the determinants and economic impact of ICT at the macro level for a panel of ten countries over the period 1992-2005. We argue that, since ICT is a General Purpose Technology, its diffusion can be understood only considering the interaction with organizational and structural change. The empirical results are in line with this view: facilitating factors such as changes in regulation, human capital and the structure of the economy are relevant determinants for increasing ICT expenditure. Moreover, in the context of a structural model linking ICT, business services, innovation and growth, we show that decreases in regulation, harmonization of regulation across countries and increases in human capital have a direct positive impact on ICT investment and a indirect positive impact on innovation, growth and business services.
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2008-09
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