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Information technology’s contribution to labour productivity growth

Growth in information technology (IT) is considered a key driver for productivity growth in many countries. However, New Zealand has little information on the extent to which IT has benefited labour productivity, either at the measured sector or industry level.

Information technology’s contribution to labour productivity growth assesses the role of IT capital deepening growth on labour productivity and fills an information gap in understanding New Zealand’s productivity performance.

Contributions of IT capital deepening to labour productivity growth are presented for New Zealand’s industries and the measured sector for 1978–2011. Figures are derived using the standard growth accounting framework.

Most industries showed double-digit growth in IT capital services. However, only a handful of industries benefited from this growth, in terms of labour productivity.

We found strong contributions of IT capital deepening to the labour productivity growth of the information, media, and telecommunications; finance and insurance services; and professional, scientific, and technical services industries.

IT capital deepening contributions were also present in the measured sector, accounting for 0.5 percent growth a year in labour productivity for 1996–2012 even though IT comprises a small share of total income.

To read the report, download or print the PDF from 'Available files' above. If you have problems viewing the files, see Opening files and PDFs.

ISBN 978-0-478-40853-9 (online)
Published 7 October 2013

Updated 8 October 2013 (Table 1 column heading updated).

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