The Role of ICT on Productivity Growth in Australia : A Long-Run Perspective

This paper revisits the so-called ‘ICT-productivity paradox' from a long-run perspective by using annual Australian data for about five decades. It provides estimates of long-run and short-run elasticities of labour productivity with respect to ICT capital deepening, explores the nature of long-run causality among productivity growth and ICT and non-ICT capital deepening. The estimates of long-run elasticities are derived by employing both time-series and panel data econometric techniques. The empirical results provide strong confirmatory evidence of the long-run impact of ICT capital deepening on labour productivity in Australia