Direct and Indirect Impact of ICT on EU’s Productivity Growth

Izabela Mlynarzewska- Borowiec
European Research Studies Journal, Volume XXIV, Special Issue 4, 278-287, 2021
DOI: 10.35808/ersj/2689


Purpose: The aim of the research is to verify the hypothesis of a significant direct and indirect ICT impact on EU’s productivity changes in 1997-2017. Design/Methodology/Approach: A direct ICT contribution to productivity growth was captured at the macro level with the use of the growth accounting approach. A sector level study was conducted to assess the importance of both direct and indirect ICT transmission channels. The research was carried out with the use of the EUKLEMS 2019 database. Findings: The results confirm the hypothesis about the direct and indirect impact of ICT on EU’s productivity, which seems to be much more important for the old EU members. The indirect ICT transmission channel was found to be of key importance for the EU’s productivity growth. Practical Implications: The study identifies the cause of the decline in EU’s productivity and the possibility of accelerating it by increasing the efficiency of the indirect ICT impact channel functioning. Originality/value: The ICT impact analysis covering the old and new EU members in the period before, during and after the crisis shown in the paper has not been widely presented in the literature to date.

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