Current Issues in Economics and Finance
Investing in Information Technology: Productivity Payoffs for U.S. Industries
June 2001 Volume 7, Number 6
JEL classification: O4

Author: Kevin J. Stiroh

Although firms have invested billions of dollars in information technology to boost their productivity, many analysts continue to question whether these investments do in fact lead to productivity gains. An industry-level analysis of productivity performance provides robust evidence of a link, showing that the industries experiencing the largest productivity acceleration in the late 1990s were the producers and most intensive users of information technology.

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