By Hasan Bakhshi and Jens Larsen
This paper addresses how rapid technological progress in the information and communications technology (ICT) goods sector contributes to long-run growth in the United Kingdom and how changes in the processes driving this progress may affect the macroeconomic outlook. Academics and policy-makers alike have argued that the US economy experienced an improvement in trend productivity growth in the second half of the 1990s. And technological progress in the ICT sector, with an associated rapid fall in ICT prices, has been a major contributor to US labour productivity growth over this period.
Investment-specific technological progress in the United Kingdom