Time:4.19 12:00-14:00
Location:A949
Title：Digitalized Factors of Production and High-Quality Development
Presenter:Xiang XU
Abstract：
In this paper we define a new factor of production: digital capital, and separate it from the capital of information and communication technology (ICT). We construct an endogenous growth model that inputs digital capital to study its direct growth effect and spillover effect, and its relationship with the ICT capital in the production process. By solving the model, we find that the key to improve the quality of economic growth is to simultaneously increase investment in both ICT and digital resources. We also find that the magnitude of digital capital’s spillover to economic growth is decided by its impacts on general production technology and data processing technology. More specifically, we find that measured total factor productivity (TFP) used by most existing empirical studies are higher than the ‘real’ TFP if the impact of digital capital is considered. The separation of digital capital from ICT capital actually reduces the steady-state economic growth rate, which is in line with the results of recent empirical studies.
Introduction：
Xiang XU is an Associate Professor at Central University of Finance and Economics, School of Economics. Xiang got his bachelor and PhD degree from the School of Economics and Management in Tsinghua University in 2010 and 2015 respectively. Xiang was the William C. Bark National Fellow of Hoover Institution from 2017 to 2018, and a visiting fellow at Harvard University from 2013 to 2014. His main research areas are China's macroeconomics, economic structure and financial development.
