PRODUCTIVITY OF ICT SECTOR AS A DRIVING FACTOR OF COUNTRY'S ECONOMIC COMPETITIVENESS

Already since mid-1990 empirical literature points that the growth in productivity in the EU is relatively slow. The modest level of productivity in Europe means that this can lead to loss of competitiveness. Development of ICT sector is one of ways how to achieve better performance of economy. Purpose of the paper is to analyse and verify how productivity level in ICT sector impacts the economic competitiveness of different European countries. As measurement for competitiveness Global Competitiveness Index (rank and value) data from World Bank databank is used and is attributed to the apparent labour productivity in 1000 EUR for information and communication sector from Eurostat. Research results indicate statistically significant correlation between information and Communication (J) sector apparent labour productivity and Global Competitiveness Index (rank and value) data for year 2015. Additionally, a panel data investigation of Granger causality between ICT sector productivity, economic growth and competitiveness for EU countries is realized. As result there is found bidirectional Granger causality between ICT productivity and economic growth, ICT productivity and competitiveness level. Thereby could be stated that higher will be ICT sector productivity that higher will be the country's economic competitiveness.