Abstract
We analyze the data of 8 European countries using regression and compare the result of our model to Stiroh’s. We find mainly four results as follows. First, different from the result in Stiroh (2002), we found only slightly more than half of the industries’ labor productivity increased around 1993. Second, to some extent, similar to the result in Stiroh (2002), we found it is true that the increase in labor productivity growth was related to ICT in the sense that the most significant increase in labor productivity growth is related to ICT-intensive industries, especially IT producing and FIRE industries. Fourth, the Chow test and chart analysis show that 1993 is not a breakpoint with significant level of 5%.
Highlights
Our task was to verify, if conclusions from given paper “Information Technology and the U.S Productivity Revival: What Do the Industry Data Say?” hold true for European economies
To some extent, similar to the result in Stiroh (2002), we found it is true that the increase in labor productivity growth was related to ICT in the sense that the most significant increase in labor productivity growth is related to ICT-intensive industries, especially IT producing and FIRE industries
Our model is closely related to the works like Alpar and Kim (1991) (Alpar, P. and Kim, M. 1991), Ahituv and Giladi (1993) (Ahituv, N. and Giladi, N. 1993), Bresnahan, Brynjolfsson, and Hitt (2002) (Bresnahan, T., Brynjolfsson, E. and Hitt, L. 2002) and O’Mahony and Van (2003) (O’Mahony, M. and Van Ark, B. 2003)
Summary
Our task was to verify, if conclusions from given paper “Information Technology and the U.S Productivity Revival: What Do the Industry Data Say?” hold true for European economies. From the plot in Figure we can see, 1974-1981, 1993, 2001 can be the most possible breakpoints, in1974-1981 and 2001 we can see, after those years, the growth rate significantly drop, on contrast, after 1993 the grow rate have a comparatively significant increase. Notice that in 1993 is the possible breakpoint start to increase, but other two points start to decrease This is more rational to say those data have more than one breakpoint, and have several periods and need to use more than one model to depict them. We can see it change a lot around year 1974, 1993, and 2001. First, we will test the null hypothesis that 1993 is a not breakpoint for the whole period 1970-2005, and examine the some topics about productivity revival
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