The Role of the ICT Sector in the Transatlantic Productivity Slowdown

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Abstract

This article extends the authors’ earlier transatlantic comparison (IPM Issue 37) by examining specifically the role of ICT capital deepening and the ICT-producing sector in the productivity slowdown. Comparing industry-level ICT shares and contributions between the U.S. and EU-10, the article finds that the transatlantic parallel in the magnitude and timing of the slowdown extends to the ICT dimension: the waning of ICT’s productivity contribution was roughly simultaneous and similar in magnitude on both sides of the Atlantic, further supporting the view that the slowdown reflects a common slowing pace of technological advance.

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