Abstract

For several years researchers & practitioners have been concerned about the impact of investments in Information & Communication Technologies (ICT) on productivity. The research framework of neoclassical growth accounting is widely used in this area of research on IT & Productivity. While several studies have explored the relationship between investments in ICT and metrics such as GDP, the links between investments in ICT and Total Factor Productivity (TFP) have received less attention, particularly for Transition Economies. In this study is we propose & illustrate a methodology for investigating the relationship between investments in ICT and TFP that is consistent with the framework of neoclassical growth accounting.

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