Productivity Paradox's Existence In China

Our information industry developed rapidly with distinctive achievements after the Reform and Open Policy had been implemented. During the 1961s and 1990s, the Influence on economic growth by Information technique Industry was on the rise; the added value of the information sector has risen steadily. And the economic status in the national economy as a whole was on the increase. So, a point of view gradually coming into being:development of information technology was sure to promote economic growth. However, the productivity paradox of solow shocked our unrealistically optimistic. He found that the grow of information technology didn't promote encomomic growing,at least on his data. After then, the research of the productivity paradox was one of hot topics. Now, what the hell was productivity paradox; what the hell was the cause of the paradox;and whether the paradox existed in china; what can we do, when we face the productivity paradox. The following, we will focus on these above topics.We adopt international advanced panel data method, combine the quantitative analysis with qualitative analysis, and then study the existence of productivity paradox, the cauce and countermeasures. This paper mainly work and innovation as follows:(1) Using of science and technology of China statistical yearbook constructs the productivity paradox index, and based on this to construct our research models. Using technological activities internal expenditures from every province communication equipment manufacturing industry, computer equipment manufacturing industry, Information transmission, computer service and the software from science and-technology of China statistical yearbook to make IT investment, labor input in non-Information technique and fixed capital stock in non-Information technique, then research on the produtivity paradox. At the same time, based on these indexes, we construct three models established on Cobb-Douglas production models of panel data, named economic growth model, labor input model and total factor model, studing the relation between Information technique investment and economic growth, the relation between information technology investment and labor productivity, the relation between information technology investment and total factor productivity. (2) We form economic growth model to study the relation between Information technique investment and economic growth. We make changes of the Cobb-Douglas production function to form economic growth model in this part. We conclude:the increace of IT can't contribute for economic growth, insteading restrain the development of economic, and prove the existence of produtivity paradox in china.(3)This part, we construct labor input model to study the relation between information technology investment and labor productivity. We conclude:the investment of IT can't promote labour productivity remarkablly, thought the correlation maybe positive of nagative. So, we test the productivity paradox in china again. (4) We form total factor model to research the relation between information technology investment and total factor productivity, then conclude:in our currence, the investment of IT rise in the total factor productivity, insteading make restrictions on it. So total factor model test the existence of productivity paradox in China.We use the international advanced statal1.0 software and apply panel data models to test the existence of productivity paradox in china studing the relations between Information technique investment and economic growth, the relation between information technology investment and labor productivity, the relation between information technology investment and total factor productivity. This study will contribute to research the influence of IT on our contry's economic, enrich our economic theory, develope and perfect the information technology industry; this will help goverments to get the general situation of information technology investment, ensure the healthy and harmonious development of the information industry, and make specific policy; while, this will contribute enterprises and private investment to establish correct ideas, and guide China's information industry development. Therefore, this research has important theoretical value and practical significance.