<p class="MsoBodyTextIndent" style="text-indent: 0in; margin: 0in 39.3pt 0pt 33.75pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">The usage of information technology (IT) towards sustainable economic growth is found to yield three main effects: (1) an efficiency effect , (2) a scale effect, and (3) a capital utilization effect. The first two effects are multiplicative whereas the third effect is additive on aggregate output productivity. In essence, this paper suggests that<span style="mso-spacerun: yes;"> </span>IT is more productive only if the economy is capable of replacing its sustainable capital resources at a rate exceeding that of consumption sacrifice.</span></span></p>
Capital utilization, economic growth and convergence
