Arbeitspapier

The productivity slowdown in Canada: An ICT phenomenon?

We ask whether a weaker contribution of information and communication technologies (ICT) to productivity growth could account for the productivity slowdown observed in Canada since the early 2000s. To answer this question, we consider several methods capturing channels through which ICT could affect aggregate productivity growth. This includes an approach "à la Cette et al. (2015)" that focuses on the use of ICT capital. We also examine two-sector models including a simple approach with use and production effects, and an approach "à la Oulton (2012)" that highlights the role of relatively weak growth in ICT prices. However, Oulton's approach is based on strong assumptions about the structure of the economy, some of which are clearly inconsistent with Canadian data. We therefore propose a different model based on assumptions that are less restrictive but that still capture various channels (production, capital deepening, price effects). Our results indicate that ICT continues to contribute to productivity growth, but that this contribution has declined and accounts for part of the productivity slowdown. However, the slowdowns in productivity and in the contribution of ICT do not seem to have the same timing. While productivity slowed in the early 2000s, ICT contribution does not appear to have fallen until around the Great Recession. This prompts the conclusion that while ICT had little to no role in the initial productivity slowdown, it has been a major determinant of the subdued productivity growth since around the recession.

Sprache
Englisch

Erschienen in
Series: Bank of Canada Staff Working Paper ; No. 2019-2

Klassifikation
Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
One, Two, and Multisector Growth Models
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Thema
Productivity

Ereignis
Geistige Schöpfung
(wer)
Mollins, Jeff
St-Amant, Pierre
Ereignis
Veröffentlichung
(wer)
Bank of Canada
(wo)
Ottawa
(wann)
2019

DOI
doi:10.34989/swp-2019-2
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Mollins, Jeff
  • St-Amant, Pierre
  • Bank of Canada

Entstanden

  • 2019

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