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Information Technology and the U.S. Productivity Revival: A Review of the Evidence

By Kevin J. Stiroh


Aggregate, industry, and firm level studies all point to a strong connection between information technology (IT) and the U.S. productivity revival in the late 1990s. At the aggregate level, growth accounting studies show a large and growing contribution to productivity growth from both the production and the use of IT. At the industry level, industries that produce or use IT most intensively have shown the largest increases in productivity growth after 1995. At the firm level, ITintensive firms show better performance than their peers, and several specific case studies show how IT improves real business practices. This accumulation of evidence from a variety of studies suggests a real productivity impact from IT

Year: 2002
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