It And Productivity - China's Economic Growth And Corporate Growth Mode

In the first part of this paper, to assess the role of information technology in China抯 economy and productivity growth, we examine the growth contribution of computers and relative inputs with the neo-classical framework. Our results indicate:(1) the contribution to China抯 economy growth from the use of information technology, including computer hardware, software and telecommunication, was very small in absolute terms. Such contribution from information technology, however, has been grwing very fast compared with the contribution of input factors such as other capital and labor. (2) Although contribution to China抯 productivity growth from information technology did surged after 1995, its share has been relatively small. That means information technology has not yet become a major source of productivity breakthrough in China抯 rapid economy growth.Neo-classical growth model not only can be used at the macro-economy level, but also in the firm level. In the second part of this paper, we study the mechanism through which a firm can change its growth pattern. Using the example of a listed company, we estimate the multi-factor productivity, with special consideration to the impact of high-tech investment. We first break up the factors that attribute to the company抯 growth, and then develop a method for evaluating the quality of growth, and analyze the factors that accelerate the shift of growth pattern.