The Economics of Network-Powered Growth
Source: Cisco Systems
This paper assesses the evidence and finds strong support in the economic literature for the notion that network technology has the potential to boost economic growth permanently, sustainably enriching poorer societies. The drivers of economic growth have been difficult for economists to determine; some countries prosper, while others decline or remain poor. Yet economic analysis shows that differences in total factor productivity - the know-how, processes, and technologies with which capital is utilized - rather than capital intensity are the main determinants of cross-country differences in productivity and economic growth.