Information and Communication Technologies in a Multi-Sector Endogenous Growth Model

Abstract

This paper investigates the impact of Information and Communication Technologies (ICT) on growth in an economy consisting of three main sectors, ICT-producing, ICT-using and non-ICT-using. The bene…ts from ICT come from the falling prices of the ICT-using sector’s good, which is used for the production of intermediate goods. Their falling prices provide incentives for investment for sectors using them, so the non-ICT-using sector experiences sustained growth driven by capital