Delayed it Usage: Is it Really the Drag on Europe's Productivity?

IGIER Working Paper No. 267

25 Pages Posted: 6 Sep 2004

See all articles by Francesco Daveri

Francesco Daveri

University of Parma - Dipartimento di Economia; Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research

Date Written: August 2004

Abstract

This paper explores the quantitative plausibility of three candidate explanations for the European productivity slowdown with respect to the US. The empirical plausibility of the common wisdom on the topic (the IT usage hypothesis) is found to crucially depend on how IT-using industries are defined. If a narrow definition is chosen, the IT usage hypothesis no longer explains the whole of the EU productivity slowdown but just about 55% of it, with the remaining part to be attributed to other factors than IT, as argued in the "IT irrelevance" view. No room is left for IT-producing industries as another potential vehicle for the US-EU productivity growth gap, instead.

Suggested Citation

Daveri, Francesco, Delayed it Usage: Is it Really the Drag on Europe's Productivity? (August 2004). IGIER Working Paper No. 267, Available at SSRN: https://ssrn.com/abstract=586363 or http://dx.doi.org/10.2139/ssrn.586363

Francesco Daveri (Contact Author)

University of Parma - Dipartimento di Economia ( email )

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