Accelerating the Globalization of America: The Next Wave of by Catherine Mann, Jacob Funk Kirkegaard

By Catherine Mann, Jacob Funk Kirkegaard

Info know-how (IT) used to be key to the very best total macroeconomic functionality of the USA within the Nineteen Nineties excessive productiveness, excessive development, low inflation, and coffee unemployment. however it additionally performed a task in expanding profits dispersion within the hard work industry significantly worthwhile staff with excessive schooling and abilities. This US functionality didn't occur in an international vacuum. Globalization folks IT corporations promoted deeper integration of IT through the US economic climate, which in flip promoted extra huge globalization in different sectors of the USA economic system and exertions industry. How will the more and more globalized IT have an effect on US long term progress, intermediate macro functionality, and disparities within the US hard work industry? What regulations are had to make sure that the USA continues to be first in innovation, enterprise transformation, and schooling and talents, that are must haves for US monetary management within the twenty first century? This publication lines the globalization of the IT undefined, its diffusion into the U.S. economic climate, and the clients and implications of extra vast technology-enabled globalization of goods and prone.

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For additional definitions and information on technology definitions, see WITSA (2002, 2004). See also definitions specific to US statistical agencies in appendix A. overall communications sector. To be sure, communications prices do change over the time period of analysis, particularly with respect to communications equipment and connection costs in some markets. But it is regulatory change, not technological change, that is the predominant factor affecting the price of communications services.

These markets can be measured through production, expenditure, crossborder investment, and trade. However measured, the global markets for information and communications technology products has expanded much faster than global GDP, global merchandise trade, or global foreign direct investment (FDI) flows. 2 trillion in 2003, for the first time surpassing the 2000 level (inflated by Internet/Y2K expenditure) and growing almost 10 percent per year as it emerged from the slowdown after 2001. 4 1. IMF’s World Economic Outlook database, September 2005, and UNCTAD’s World Investment Report 2005.

This extension of IT investment and spending is a crucial factor underlying the role that IT has played in enhancing economy-wide productivity growth in the United States. Data for foreign markets reflect the superior GDP elasticity. In markets with fast-growing income—regardless of the level of that income— expenditures on IT products increase even faster. For example, as ranked by the World Bank’s Human Development Index, real annual average GDP growth over the 1990s for Singapore, Korea, Poland, Malaysia, China, WHY FOCUS ON INFORMATION TECHNOLOGY?

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