IT AND ECONOMIC PERFORMANCE A CRITICAL REVIEW OF THE EMPIRICAL DATA

Abstract

This study undertakes a critical review of the research on the multi-significant issue of the correlation between IT investments and economic performance at a micro and macroeconomic level. The aim of this study is to shed light on the interaction of IT with the economy, at corporate, industry and national level and document it’ s contribution to productivity and therefore to economic growth. The study concludes that there is a positive effect of IT investments on both the two leading economic indicators, productivity and economic growth, in all aspects, but is something that needs further research so as to find a more clear and risk adjusted relation.