The paper estimates total factor productivity and resource reallocation effect in ICT
sectors from the cross-country data of the USA, Japan, EU7 and Korea. The source of
economic growth has shifted from the non-ICT sector to the ICT sector after the ICT boom
in the USA, Japan, EU7, and Korea. We find the contribution of ICT-producing sector to
value-added growth and TFP growth has slowed down, but that of the ICT-using sector has
grown since the middle of 1990s. In addition the reallocation effects of capital are
outweighed in ICT-using service sectors such as trade and finance, and the reallocation
effects of labor tend to be higher in non-ICT sectors, ICT-producing service, and ICTproducing
manufacturing sectors, among others.