The New Economy in Growth and Development

Abstract

The benefits from the New Economy should accrue as improvements in productivity and economic growth. But while the use of information and communication technology seems to have had a substantial impact on the performance of the United States economy, the evidence for other countries is much weaker. This study does not find any significant correlation between ICT investment and economic growth in the period 1985-99 for a sample of 42 countries for which ICT spending data are available. Even more surprisingly an…