Influence of Information Industry on Economic Growth

In order to measure the influence of information industry on economic growth,the multiplier effects,the feedback effects and the spillover effects of information industry in the year of 2007 and 2012 are calculated based on the structured decomposition of input-output model. The results show that the spillover effects are the most significant effects,which indicates that the higher investment to information industry will make the higher contribution to other industries. Meanwhile,based on China's information industry related data and the provincial panel data from the year of 2001 to 2012,the influence of information industry on economic growth is analyzed and its direct contribution and indirect contribution to economic growth are tested through vector auto-regression model and Granger causality tests. The results indicate the positive correlation between information industry and economic growth,and the two variables show co-integration. Economic growth is homogeneous Granger cause of information industry and the gross domestic product(GDP) of each province influences the information industry with the same mechanism of effect. Information industry is heterogeneous Granger cause of GDP,and the information industry growth of each province influences the growth of GDP with the different mechanism of effects.