... it determines living standards and therefore nations consumptions depends on what it produces * The main reason causes for productivity paradox in 1970s to 1990s has been evaluated as caused by cyclical factors * Is there a productivity paradox at all, this was debated by various authors but it does exist. * Main explanations for paradox are: Mis-measurements of inputs and outputs, lags due to learning adjustment, redistribution, mismanagement of IT, Procyclical productivity and insufficient use of technologies * In my opinion there is a productivity paradox and its caused by mis-measurement of tangible and intangible aspects of business as well as mis-management. 2.2 What is the Productivity Paradox? The relationship between information technology (IT) and productivity is widely discussed in literature. Computing power has increased vastly since the 1970s however the productivity, especially in the service sector, seems to have slowed. The Investment in information and computer technologies (ICT) in different sectors has increased but ...

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