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Write a note in this area. It's really easy tComputing, as a general term for digital technologies,
has greatly contributed to the economic growth in the last
twenty years. According to an analysis of 110 economies
in the world by Harvard economists Jorgenson and Vu [9],
the annualized growth of the world economy, measured in
GDP, was 2.5% during the 1989-1995 period and 3.45%
for 1995-2003, a 38% increase. They included three
main categories as the factors responsible for economic
growth: capital deployment, effective use of labor, and
total factor productivity (TFP). The contributions to the
overall economic growth are shown in Table 1.
It is seen in this table that the capital deployment
(including Information Technology and non-IT capital)
contributed almost 50%, while the othe two major factors,
labor and productivity, contributed about 20-30% and 25%,
respectively. The contribution of IT capital deployment
almost doubled from 0.27% to 0.53% during these periods,
while the impact of non-IT capital and labor to economic
growth remained pretty much flat.
Table 1. Contribution to the world economy growth.
Period GDP growth
Source of Growth
capital labor TFP IT non-IT
1989–95 2.50 0.27 0.91 0.89 0.53
1995–03 3.45 0.53 1.03 0.89 0.99
The growth in total factor productivity (TFP) is the
output growth of an economy not accounted for by the
growth in input, that was also almost doubled during
these two periods. It has been well documented [2, 4,
6] that such rapid growth in productivity is impacted
by the advancement of Information and Communication
Technologies (ICT) in a significant way.
Undoubtedly, computing technologies will continue to
make computers, communication links, and storage device
run faster and to be more available. However, the focus will
be more on information and knowledge processing in wide
range of applications in almost all social and economical
fields. The productivity and impact of computing should
be measured on the outcome of the increased economical
productivities of all applications.o share with others. Click here ...
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