Management quality, new technologies and growth

An important idea has appeared in the economic research literature ( 1) : the emergence of new technologies has penalised countries with poor-quality corporate management. To understand the dispersion of countries’ growth performances over the past 20 years, it is therefore necessary to take into account the ability of management to make efficient use of new technologies (its ability to modify structures and working methods, improve human capital, etc.). We use survey data on management efficiency and show that: The innovation or capital modernisation effort has a modest effect on the whole on productivity growth; Management efficiency has a positive effect on productivity growth and on the effect of innovation and capital modernisation on productivity (efficient management makes innovation and modernisation useful). F. Schivardi, T. Schmitz “The IT Revolution and Southern Europe’s Two Lost Decades” CEPR Discussion Paper No. 12843, April 2018