Exploring the effects of digitization and new data on labor and total factor productivity growth in the US economy

Ayesha Khan 1, *, Shabir Ali 2 and Tayyab Khan 1

1 School of Economics, Wuhan University of Technology, Wuhan, Hubei, 430070, China.
2 Institute of Business & Management Sciences (IBMS), The University of Agriculture, Peshawar, Pakistan.
 
Research Article
International Journal of Science and Research Archive, 2024, 11(02), 081–092.
Article DOI: 10.30574/ijsra.2024.11.2.0350
Publication history: 
Received on 15 January 2024; revised on 25 February 2024; accepted on 28 February 2024
 
Abstract: 
A "new economy" has been developing for almost a decade, with various indicators suggesting a shift in the American economy. The significant growth of labor and total factor productivity in the latter part of the 1990s was remarkable, leading many to interpret it as an essential development. Some indicators are less cyclical and seem to be more enduring. We argue that the advancements in digital information and the Internet represent a new form of technology that, when integrated, forms a highly innovative system known as the new economy. Actors and concepts are increasingly intertwined. We can only start to measure the complete impact of its influence at this early phase. The new or digital economy emphasizes dynamic efficiency over static efficiency. New and innovative activities and products are more important than producing more. The Internet's growing popularity has significantly increased diverse ideas and participants and enhanced connectivity. This has initiated a genuine economic revolution. While there are noticeable impacts on efficiency and output, the more significant long-term effects are incalculable.
 
Keywords: 
Total factor productivity; Digitization; Technology; U.S economy
 
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