ICT Capital Formation, Unemployment, and the Solow Paradox

Emmanuel Apergis, Nicholas Apergis, James W, Saunoris

Research output: Contribution to journalArticlepeer-review


This study explores the impact of ICT on unemployment and labour productivity. Using a time-varying modelling approach, quarterly US data from 1972 to 2020 estimate the relationships between unemployment and ICT capital investments. The results highlight that ICT capital investments reduce unemployment and increase labour productivity, showing no evidence supporting the Solow Paradox. The mechanisms behind the relationship between ICT and enhanced labour productivity are identified by Data Envelopment Analysis (DEA) and include improved access to information and an improvement in the labour structure.

Original languageEnglish
Pages (from-to)79-105
Number of pages27
JournalInternational Journal of the Economics of Business
Issue number1
Early online date9 Dec 2022
Publication statusPublished - 1 Apr 2023


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