Ict And Economic Growth – Short Term Causality Analysis
Abstract
Information technologies are often regarded as one of the modern sources of economic growth. They are usually linked to great inventions of the past and marked as a „general purpose technology“. Information technologies should affect whole economy reducing transaction cost and increasing production factors productivity. Companies utilizing information technologies should be more competitive than those which do not do that and countries with higher IT investments should grow faster. This whole story worked fine during 1990s and 2000s but the situation changed with the recession at the beginning of 2008. Although all the benefits from IT were still valid (or even more) companies reduced their IT spending dramatically in 2009. Such unexpected development raises a question if IT sector is not - at least in a short run - a dependent sector which is much more affected by than affecting the overall production.
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