The relentless decline in the prices of information technology (IT) has steadilyenhanced the role of IT investment as a source of economic growth in the United States. Productivitygrowth in IT-producing industries has gradually risen in importance, and a productivity revival hastaken place in the rest of the economy. In this book Dale Jorgenson shows that IT provides thefoundation for the resurgence of American economic growth.Information technology rests in turn onthe development and deployment of semiconductors--transistors, storage devices, and microprocessors.The semiconductor and IT industries are global in scope, with an elaborate international division oflabor. This poses important questions about the American growth resurgence. For example, where isthe evidence of the "new economy" in other leading industrialized nations? To address this question,Jorgenson compares the recent growth performance in the G7 countries--Canada, France, Germany,Italy, Japan, the United Kingdom, and the United States. Several important participants in the ITindustries, such as South Korea, Malaysia, Singapore, and Taiwan, are newly industrializingeconomies. What does this portend for the future economic growth of developing countries? Jorgensonanalyzes past and future growth trends in China and Taiwan to arrive at a fuller understanding ofeconomic growth in the information age.
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