Information And Communication Technology Industry And Economic Growth: The China Practice

In today's age of the knowledge/information economy, the world's economic growth can't lack the high-speed development of information and communication (ICT) industries. ICT industries are just among the polar and core industries in present age.This paper classifies ICT industries as extensive ICT industries and intensive ICT industries. The former are divided into ICT manufacturing as well as ICT services. The latter refer to those industries from the former whose products or services are generally inputted into all sectors of the national economy as capital goods. In addition, this paper groups the whole national economy into a four-part input-output table, which includes the primary industry, the secondary industry, the tertiary industry and ICT industry, to conduct the input-output analysis.In theory, ICT industries boost the technological creation and accelerate the process of intensivism by transforming the traditional industries. On the other hand, the development of ICT industries itself can optimize the industrial structure and improve the economic benefits. So economic growth is being promoted by ICT industries in the above two ways.This paper places emphasis on the following points: empirically, analyzing the short-term effect of extensive ICT industries on our country's economic growth, and the role of extensive ICT industries in employment, foreign trades. By using the production function model, analyzing the long-term impact of intensive ICT industries on the nation's economic growth and their contribution to the labor productivity growth. Implementing the input-output methods, exploring the economic performance of ICT industries' input and output, industrial relationship and spread effects as well as the rule for the structure change, etc.The findings show that from 1986 to 2002, the short/long-term contributions of ICT industries to the economic growth and the effect of them on the labor productivity growth generally display a fast-growing trend, the position of ICT industries in the national economy is more and more important. The share of ICT industries'import-export turnover rises quickly for the same period. During 1986-2002, ICT industries give a low, unsteady contribution to the increase in total employment, which proves ICT industries are not labour-intensive industries.In regard to industrial relationship, analysis indicates ICT industry counts most on the secondary industry, while among other industries that rely on ICT industry, itself is first. With respect to industrial spread, ICT industry's inductivity coefficient is the least, which means it isn't obvious that this industry is a bottleneck to the national economy. Influence coefficient of ICT industry is right next to that of the secondary industry that is the largest, which reveals our country remains in the process of informationization. ICT industry is a powerful driver of economic growth.