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Computer and Economic Growth in Finland

Author

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  • Niinien, P.

Abstract

The effect of computer technology on Finnish economic growth in 1983-96 is examined to shed light into the famous productivity paradox. Using the neoclassical growth accounting framework, the contribution of computer hardware, software and labor to gross and net output growth is assessed at aggregate level. The results suggest that a considerable amount of real growth can be attributed to computers. Almost eight per cent of the net growth can be attributed to information technology. This is about two thirds of the contribution of other fixed capital stock. However, the role of multifactor productivity still dominated in the growth accounting. In addition to basic results, the assumptions of growth accounting are relaxed to extend the model.

Suggested Citation

  • Niinien, P., 1998. "Computer and Economic Growth in Finland," Research Paper 148, World Institute for Development Economics Research.
    • Handle: RePEc:fth:wodeec:148
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    More about this item

    Keywords

    TECHNOLOGY ; ECONOMIC GROWTH;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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