Economic Analysis of Endogenous Growth Model with ICT Capital

This paper clarifies the role of ICT capital in economic
growth. Albeit ICT remarkably contributes to economic growth, there
are few studies on ICT capital in ICT sector from theoretical point of
view. In this paper, production function of ICT which is used as input
of intermediate good in final good and ICT sectors is incorporated
into our model. In this setting, we analyze the role of ICT on balance
growth path and show the possibility of general equilibrium solutions
for this model. Through the simulation of the equilibrium solutions,
we find that when ICT impacts on economy and economic growth
increases, it is necessary that increases of efficiency at ICT sector and
of accumulation of non-ICT and ICT capitals occur simultaneously.