By Catherine Mann, Jacob Funk Kirkegaard

ISBN-10: 088132390X

ISBN-13: 9780881323900

ISBN-10: 1435609182

ISBN-13: 9781435609181

Details expertise (IT) used to be key to the very best total macroeconomic functionality of the us within the Nineties excessive productiveness, excessive development, low inflation, and coffee unemployment. however it additionally performed a job in expanding gains dispersion within the exertions marketplace significantly worthwhile employees with excessive schooling and abilities. This US functionality didn't ensue in a world vacuum. Globalization folks IT agencies promoted deeper integration of IT during the US financial system, which in flip promoted extra broad globalization in different sectors of the united states financial system and hard work marketplace. How will the more and more globalized IT impact US long term development, intermediate macro functionality, and disparities within the US hard work marketplace? What regulations are had to make sure that the us continues to be first in innovation, enterprise transformation, and schooling and abilities, that are must haves for US fiscal management within the twenty first century? This booklet strains the globalization of the IT undefined, its diffusion into the united states financial system, and the customers and implications of extra vast technology-enabled globalization of goods and prone.

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WHY FOCUS ON INFORMATION TECHNOLOGY? 9 01--Ch. 1--1-10 6/12/06 11:32 AM Page 10 these results with respect to the higher relative return to software use are consistent with the higher estimated price elasticities reported earlier. Going forward, as globalization of IT products expands from hardware into software, there is the potential for declines in the price of software. These price declines portend additional gains to IT investment and the associated acceleration of productivity and economic growth through channels similar to those to be analyzed more explicitly in the context of IT hardware in chapter 3.

For additional definitions and information on technology definitions, see WITSA (2002, 2004). See also definitions specific to US statistical agencies in appendix A. overall communications sector. To be sure, communications prices do change over the time period of analysis, particularly with respect to communications equipment and connection costs in some markets. But it is regulatory change, not technological change, that is the predominant factor affecting the price of communications services.

But there is no question that the global IT and communications marketplaces are large and expanding. These markets can be measured through production, expenditure, crossborder investment, and trade. However measured, the global markets for information and communications technology products has expanded much faster than global GDP, global merchandise trade, or global foreign direct investment (FDI) flows. 2 trillion in 2003, for the first time surpassing the 2000 level (inflated by Internet/Y2K expenditure) and growing almost 10 percent per year as it emerged from the slowdown after 2001.

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Accelerating the Globalization of America: The Next Wave of Information Technology by Catherine Mann, Jacob Funk Kirkegaard


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