| Abstract |
This paper examines cross-country and
cross-industry differences in labor productivity performance and
their association with ICT. It broadens earlier work with coverage
of 52 industries in 16 OECD countries. The analysis suggests that
ICT diffusion in Europe is following similar industry patterns to
those observed in the U.S., but at a considerably slower pace. The
key differences between Europe and the U.S. are in the intensive
ICT-using services, with U.S. productivity growth showing a strong
acceleration during the second half of the decade, whereas growth
stalled in the EU. More specifically, the U.S. showed rapid
productivity expansion in retail and wholesale trade and securities,
which account for much of the overall U.S.-EU gap in productivity
growth since 1995. In the ICT-producing sector, computers and
communication equipment showed strong productivity growth and
acceleration in virtually all countries, but differences are much
bigger across countries for ICT-producing services, such as telecom
services.
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