The IT revolution and southern Europe's two lost decades
Productivity growth in southern Europe has been lower than in other developed countries. The column argues that this has in large part been caused by slow adoption of information technology,
Fabiano Schivardi and Tom Schmitz on low productivity growth in Southern Europe: "Without improvements in management practices, increased IT spending will not close the productivity gap."
Low productivity growth in southern Europe has in large part been caused by slow adoption of information technology, compounded by inefficient management according to a study by Tom Schmitz
& Fabiano Schivardi -
Since mid 1990s productivity growth in southern Europe has been much lower. Between 1995-2015, productivity grew by 1.1% per year in Germany, and by 1.4% per year in the US, but by 0.5% per year in Portugal and only 0.1% per year in Italy and Spain.
_ Solow quip reversed, no computer, no TFP growth •
Slow adoption of information technology, compounded by inefficient management, explains lower productivity growth in Italy, Portugal & Spain than in other developed countries over the last two decades,