RDP 2002-02: Australian Use of Information Technology and its Contribution to Growth 8. Conclusion

This paper investigated the historical gains from the use of information technology in Australia. Our analysis suggests that Australia has done well out of the ‘new economy’. Its use of computer technology is amongst the highest in the world with Australian business investment in computer and related equipment growing rapidly since the early 1990s. Furthermore, we find that around one-half of the gains from the use of IT can be attributed to price falls while the other half can be attributed to higher expenditure on computers. We arrive at the conclusion that Australia has experienced significant output growth related to computer use and that, as a user of IT, we will continue to gain significantly in the future provided that technological growth in the industry remains as rapid as it has been previously.