Economic Analysis of Endogenous Growth Model with ICT Capital
This paper clarifies the role of ICT capital in economic
growth. Albeit ICT remarkably contributes to economic growth, there
are few studies on ICT capital in ICT sector from theoretical point of
view. In this paper, production function of ICT which is used as input
of intermediate good in final good and ICT sectors is incorporated
into our model. In this setting, we analyze the role of ICT on balance
growth path and show the possibility of general equilibrium solutions
for this model. Through the simulation of the equilibrium solutions,
we find that when ICT impacts on economy and economic growth
increases, it is necessary that increases of efficiency at ICT sector and
of accumulation of non-ICT and ICT capitals occur simultaneously.
[1] J. Alonso-Carrera and X. Raurich, "Growth, Sectoral Composition, and
the Evolution of Income Levels,” Journal of Economic Dynamics &
Control, Vol.34, 2010, pp.2440-2460.
[2] R. J. Barro and X. Sala-i-Martin, Economic Growth,2nd ed. Cambridge,
England :MIT press, 2004.
[3] M. Chinn and R.W.Fairlie, "ICT Use in the Developing World:
An Analysis of Differences in Computer and Internet Penetration,”
National Bureau of Economics Research, Working Paper 12382, 2006.
[4] M. Haacker, "ICT Equipment Investment and Growth in Low-and
Lower-Middle-Income Countries,” International Monetary Fund,
Working Paper WP/10/66, 2010.
[5] A. Hughes and M. S. Scott Morton, "ICT and Productivity Growth-The
Paradox Resolved?,” Centre for Business Research, University of
Cambridge, Working Paper No.316, 2005.
[6] Information Communication Department of Ministry of Public
Management, Investigation and Report on Economic Analysis of ICT,
2012.
[7] S. Katagiri, "Analysis for ICT and wage Differences of International
Trade,” Kyushu Keizaigakkai Nenpo, No.51, 2013, pp.41-47.
[8] R. E. Jr. Lucas, "On the Mechanics of Economic Development,”
Journal of Monetary Economics, Vol.22, 1988, pp.3-42.
[9] E. Nasab and M. Aghaei, "The Effect of ICT on Economic Growth:
Further Evidence,” International Bulletin of Business Administration,
Issue 5, 2009, pp.46-56.
[10] H. K. Nord°as,, "ICT, Access to Service and Wage Inequality,” World
Trade Organization Economic Research and Statistical Division, Staff
Working Paper ERSD-2003-02, 2003.
[11] M. O’Mahony and M. P. Timmer, "Output, Input and Productivity
Measures at The Industry Level: The EU KLEMS Database,” Economic
Journal, Vol.119, 2009, pp.F374-F403.
[12] D. Pilat, "The ICT Productivity Paradox : Insights from Micro Data,”
OECD Economic Studies, No.38, 2004.
[13] D. Pilat and A. W¨olfl, "ICT and Economic Growth - New Evidence
from International Comparisons,” mimeo, 2009.
[14] S. Rebelo, "Long-Run Policy Analysis and Long-Run Growth,” Journal
of Political Economy, Vol.99, 1991, pp.500-521.
[15] V. Spiezia, "ICT Investments and Productivity: Measuring the
Contribution of ICTS to Growth,” OECD Journal: Economic Studies,
Vol.2012/1, 2012, pp.199-211.
[16] A.Shinozaki and D. Tahara, Analysis of Global Effect on Diffusion
of ICT affecting Economic Development and Difference: Data
Observation on Transition of International Dispute and Actual Change,
ESRI Discussion Paper Series No.289(The Cabinet Office, Japan),
2012.
[17] T. Miyagawa, "Cycle of Plant and Equipment Investment at 90’s
of Japanese Economy,” Economic Journal of Gakushuin University,
Vol.37/1, 2000, pp.41-78.
[1] J. Alonso-Carrera and X. Raurich, "Growth, Sectoral Composition, and
the Evolution of Income Levels,” Journal of Economic Dynamics &
Control, Vol.34, 2010, pp.2440-2460.
[2] R. J. Barro and X. Sala-i-Martin, Economic Growth,2nd ed. Cambridge,
England :MIT press, 2004.
[3] M. Chinn and R.W.Fairlie, "ICT Use in the Developing World:
An Analysis of Differences in Computer and Internet Penetration,”
National Bureau of Economics Research, Working Paper 12382, 2006.
[4] M. Haacker, "ICT Equipment Investment and Growth in Low-and
Lower-Middle-Income Countries,” International Monetary Fund,
Working Paper WP/10/66, 2010.
[5] A. Hughes and M. S. Scott Morton, "ICT and Productivity Growth-The
Paradox Resolved?,” Centre for Business Research, University of
Cambridge, Working Paper No.316, 2005.
[6] Information Communication Department of Ministry of Public
Management, Investigation and Report on Economic Analysis of ICT,
2012.
[7] S. Katagiri, "Analysis for ICT and wage Differences of International
Trade,” Kyushu Keizaigakkai Nenpo, No.51, 2013, pp.41-47.
[8] R. E. Jr. Lucas, "On the Mechanics of Economic Development,”
Journal of Monetary Economics, Vol.22, 1988, pp.3-42.
[9] E. Nasab and M. Aghaei, "The Effect of ICT on Economic Growth:
Further Evidence,” International Bulletin of Business Administration,
Issue 5, 2009, pp.46-56.
[10] H. K. Nord°as,, "ICT, Access to Service and Wage Inequality,” World
Trade Organization Economic Research and Statistical Division, Staff
Working Paper ERSD-2003-02, 2003.
[11] M. O’Mahony and M. P. Timmer, "Output, Input and Productivity
Measures at The Industry Level: The EU KLEMS Database,” Economic
Journal, Vol.119, 2009, pp.F374-F403.
[12] D. Pilat, "The ICT Productivity Paradox : Insights from Micro Data,”
OECD Economic Studies, No.38, 2004.
[13] D. Pilat and A. W¨olfl, "ICT and Economic Growth - New Evidence
from International Comparisons,” mimeo, 2009.
[14] S. Rebelo, "Long-Run Policy Analysis and Long-Run Growth,” Journal
of Political Economy, Vol.99, 1991, pp.500-521.
[15] V. Spiezia, "ICT Investments and Productivity: Measuring the
Contribution of ICTS to Growth,” OECD Journal: Economic Studies,
Vol.2012/1, 2012, pp.199-211.
[16] A.Shinozaki and D. Tahara, Analysis of Global Effect on Diffusion
of ICT affecting Economic Development and Difference: Data
Observation on Transition of International Dispute and Actual Change,
ESRI Discussion Paper Series No.289(The Cabinet Office, Japan),
2012.
[17] T. Miyagawa, "Cycle of Plant and Equipment Investment at 90’s
of Japanese Economy,” Economic Journal of Gakushuin University,
Vol.37/1, 2000, pp.41-78.
@article{"International Journal of Business, Human and Social Sciences:68112", author = "Shoji Katagiri and Hugang Han", title = "Economic Analysis of Endogenous Growth Model with ICT Capital", abstract = "This paper clarifies the role of ICT capital in economic
growth. Albeit ICT remarkably contributes to economic growth, there
are few studies on ICT capital in ICT sector from theoretical point of
view. In this paper, production function of ICT which is used as input
of intermediate good in final good and ICT sectors is incorporated
into our model. In this setting, we analyze the role of ICT on balance
growth path and show the possibility of general equilibrium solutions
for this model. Through the simulation of the equilibrium solutions,
we find that when ICT impacts on economy and economic growth
increases, it is necessary that increases of efficiency at ICT sector and
of accumulation of non-ICT and ICT capitals occur simultaneously.
", keywords = "Endogenous economic growth, ICT, intensity,
capital accumulation.", volume = "8", number = "10", pages = "3267-11", }
