Analysis of multiplier effects of ICT sectors a Croatian case
The impact of Information and Communication Technology (ICT) on economic growth and development has nowadays proven to be significant for almost all national economies. In this paper, a quantitative analysis of the impact of ICT on Croatian economic growth is performed using the input output (IO) method. The direct and indirect effects of ICT sectors are analysed. Subsequently, simple output multipliersand simple value added multipliers are then calculated. The results indicate that there are no significant differences between the ICT multipliers for the Croatian economy in 2010 and multipliers of other sectors. The largest values of multipliers of all ICT sectors are attributed to the one of ICT service sector. Moreover, significant changes were also not observed when comparing ICT multipliers for the Croatian economy in 2004 and 2010. In addition to Croatia, multiplier analysis of ICT sectors was conducted for the group of new and long standing European Union member states. The conclusion is that, in new member states, the implementation and usage of ICT has a lower contribution to economic growth and development.