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We identify two counteracting effects of credit access on productivity growth: on the one hand, better access to credit makes it easier for entrepreneurs to innovate; on the other hand, better credit access allows less efficient incumbent firms to remain longer on the market, thereby discouraging entry of new and potentially more efficient innovators. The inclusion of software further increases indirect ICT investment but the increase is smaller in percentage than without this inclusion. A final result, but concerning only three countries, it that the diagnosis of a stabilisation, or even a decrease, of ICT investment in percentage of GDP or of total investment, observed from the beginning of the century, is not modified if we take into account the indirect ICT investment. The article investigates the effects of Employment Protection Legislation EPL on capital and skills according to the intensity of international competition. Strengthening EPL can therefore be an impediment to organizational and so technological change and risk taking on globalized markets. The twentieth century was a period of exceptional growth, driven mainly by the increase in total factor productivity TFP. Using a database of 17 OECD countries over the — period, this paper integrates production factor quality into the measure of TFP, namely by factoring the level of education of the working-age population into the measure of labor and the age of equipment in the measure of capital stock.
Antonio A. Casilli ed.