ICT and e-Business Impact in the Retail Industry - empirica

e-Business in the Retail SectorTable A-3-2 Decomposition of gross value added growth by different factor inputsCountriesgross valueaddedcontributionof labourinputscontribution oftotal workinghourscontributionlabourqualitychangecontributionof capitalcontibutionof ICTcapitalcontributionof Non-ICTcapitalcontributiontotal factorproductivity(1)=(2)+(5)+(8) (2)=(3)+(4) (3) (4) (5)=(6)+(7) (6) (7) (8)average annual growth rates, in %1986-1995Austria 2.7 0.7 0.4 0.3 0.9 0.4 0.5 1.1Belgium -0.6 0.4 -0.4 0.8 0.9 0.3 0.6 -1.8Denmark 1.3 -1.7 -1.7 0.0 1.0 0.9 0.1 2.0Spain 3.8 2.4 1.9 0.5 0.3 0.0 0.3 1.1Finland 0.8 -2.4 -3.0 0.6 0.6 0.3 0.3 2.6France 2.5 0.4 -0.2 0.6 0.4 0.2 0.2 1.8Germany 3.2 1.4 1.1 0.2 -0.4 -0.4 0.0 2.3Italy 1.7 0.3 -0.2 0.5 0.5 0.1 0.4 0.8Luxembourg 1.4 0.2 1.2 -0.4Netherlands 3.2 1.8 1.5 0.3 0.5 0.1 0.4 0.9Sweden 6.7 1.2 0.7 0.6 0.8 0.5 0.3 4.7United Kingdom 3.5 0.7 0.6 0.1 1.3 0.5 0.8 1.41995-2004Austria 2.5 0.5 0.25 0.24 0.7 0.5 0.2 1.3Belgium 0.5 0.4 0.01 0.39 1.2 0.6 0.6 -1.1Denmark 0.9 1.4 1.37 0.06 0.9 0.9 0.0 -1.4Spain 3.2 2.7 2.13 0.53 1.1 0.2 0.9 -0.6Finland 4.5 0.8 0.78 -0.01 0.5 0.4 0.1 3.2France 0.9 0.6 0.26 0.36 0.2 0.0 0.1 0.1Germany 0.7 -0.3 -0.35 0.03 -0.3 -0.3 0.0 1.4Italy -0.5 -0.2 -0.61 0.41 1.1 0.2 1.0 -1.4Luxembourg 2.4 0.4 2.0 -0.9Netherlands 1.8 0.3 0.35 -0.10 0.6 0.3 0.3 1.0Sweden 4.2 0.3 -0.10 0.35 0.9 0.6 0.4 3.0United Kingdom 3.7 1.1 0.7 0.4 2.2 0.8 1.4 0.5VA - Gross Value Added growthL - Contribution of Labour input growthH - Contribution of Total hours workedLC - Contribution of Labour compositionK - Contribution of Capital input growthKIT - Contribution of ICT capitalKNIT - Contribution of Non-ICT capitalTFP Contribution of Total Factor Productivity growthCommon stochastic production possibility frontiers approachA production frontier indicates the maximum possible production in a given period of time,using a given amount of production factors. The frontier may for example refer to aparticular country or industry. The production possibility frontier approach, in contrast tothe more traditional production function approach, allows to disentangle the overallproductivity growth 89 into two components: first, the rate of technological progressexpanding the frontier, and second, the movements of decision-making units (e.g. firmsand, on an aggregate level, industries and countries) towards the frontier, i.e. towardsoptimal usage of production factors (see figure A-8).Exhibit A2-3: Production possibility set and frontier89Measured as changes in the ratio of total output produced over all inputs used in theproduction process.204