Citation

Discussion Paper Details

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Title: It's Not What You Make, It's How You Use IT: Measuring the Welfare Benefits of the IT Revolution Across Countries

Author(s): Tamim Bayoumi and Markus Haacker

Publication Date: September 2002

Keyword(s): information technology, technological change, terms of trade and welfare benefits

Programme Area(s): International Macroeconomics

Abstract: This Paper analyses the welfare benefits from falling relative prices of IT (Information Technology) goods across a wide range of countries. Using two separate methodologies and datasets, we find that welfare benefits mainly accrue to users of IT, not their producers, because of falling relative prices. This is important, as IT production and use are highly differentiated across countries, and implies that earlier work on how IT production affects real GDP, while useful in calibrating the overall benefits of the IT revolution, are a less valuable way of assessing the distribution of benefits.

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Bibliographic Reference

Bayoumi, T and Haacker, M. 2002. 'It's Not What You Make, It's How You Use IT: Measuring the Welfare Benefits of the IT Revolution Across Countries'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3555