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Using dynamic panel data on 20 Belgian market sectors over 1987-2005, the paper analyses the link between Multifactor Productivity (MFP) growth and three frequently cited determinants: business R&D, labour skills and ICT use. The theoretical framework of the analysis is given by the Aghion-Howitt model which explains the rate of MFP growth by the distance to the world technology frontier.
The objective of this paper is to assess the impact of information and communications technology (ict) on economic performance at the sectoral level in Belgium over the period 1990-2000. The growth accounting approach used in the framework of the neoclassical growth theory for the study of the sources of economic growth will be adopted here in order to quantify the impact of ict use on output and labour productivity growth. Since annual data on ict capital stock are not readily available, we use data from a number of sources to construct this indicator at the sector level for Belgium over the period 1990-2000. Our findings should indicate (i) to which extent ict contributed to output and labour growth at the sectoral level in Belgium in the 1990s and (ii) whether industries making intensive use of ict performed better then non-intensive ict ones over the same period.
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