The contribution of ICT to economic activity: a growth accounting exercise with Spanish firm-level data

This paper applies a well-established growth accounting framework to measure the contribution of ICT inputs to output and labour productivity growth in Spain, using a sample of 1300 firms per year over 1991-2000. Firm-level data are helpful to overcome the availability lags and the mismeasurement of capital stocks associated with the use of aggregate data. We find that: 1) The use of ICT inputs has made a positive and significant contribution to output and productivity growth. 2) This contribution was higher in the second half of the 1990s. 3) At a sectoral level, there is a general rise in the share of ICT in total capital and a general reduction in ICT cost shares. (Copyright: Fundación SEPI)