Innovation of Information Technology (IT) impact on Canadian Economy Essay

Innovation of Information Technology (IT) impact on Canadian Economy

          Information technology has become a great part of our life. Nowadays, most of the work is done by computers or handhelds devices.  Those days are passed away when all the work done by employees or human resource. Now machine has replaced man power up to high extent, although still there is a need of men in order to operate machines. In ancient days, different types of manual things were used in order to maintain things and to do lots of things. Different machines are used in order to do number of different tasks at different places. Information technology has achieved target position in the world.  In past few decades it has been observed that number of things or tasks is now become very easy and saves lots of time and money. Information technology is now spread over all fields of life. Information technology doesn’t only relate to computer system but also number of different expert systems is also based on number of different concepts which are used in making new and organized system for making tasks simple and affective. The use of computer system and information technology is very common and has become part of life. Half of our life depends upon information technology, computer system and its application. Number of applications is implemented in all parts of world which are used for number of applications all over the world. Information technology has number of uses in number of fields. Information technology is gift of new and modernized world. Number of systems is dependent on information technology applications. They are widely used for huge calculation and computation in number of fields. Information technology applications are specially designed and developed for satisfying customer’s needs.. Information technology has great findings.

              Information technology has achieved many targets in almost every field and widely known as problem solver in number of fields. Worldwide information grids are talemacics are now used on large premises and affecting service sector up to high extent. Worldwide services and talemacics are now growing rapidly as number of different companies is allowing them to offer number of new and exciting services at economical rates via the realization of economics of scope. Different companies and financial institutions allow world wide services to offer new and exciting offers for users day by day. With new and exciting offers world wide services is gaining so much popularity in number of fields.MNEs by centralizing the function of information technology increased their sales and growth , they uses information function and increases their functionality and competitiveness. Canada a well developed country affected a lot with the growing reputation of information services. Canada is a traditional recipient of foreign direct investment is directly affected with the growth of information services. The pros and cons of information system are always critically examined and observed. It is proved that information technology factors works well and has a great impact on Canadian economy. The pros and cons of different public policies aiming at both attracting multinationals as well as local mandates and forecasting different activities including R & D activities. Information technology has a great significance in all markets of the world and large computations are done by different applications of information technology. Canadian information technology sector works well if it is compared to Canadian economy system and also specially designed according to the needs and requirements of today’s user and market.

         Information technology has a great contribution in growth of economic market. From 1990, it has less contribution in Canadian market as in United States. Information technology equipments are now widely used every where such as in homes, offices and other business places.  During past few decades information technology use and different approaches are also introduced with the passage of time. The exclusion of ICT spending has found a great explosion and impact on economic investment and capital accumulation as sources of economic growth. In 1990 and in late 1980’s information technology has become an important part of Canadian economic growth. It is also used for analyzing of effects of information technology trends in order to calculate the performance of economic growth. There is a wide classification of total capital by asset class which are as follows: Packaged software, customized software, software custom design, communication equipment, and other machinery including office furniture ,furnishing,  house hold se4rvices, aircraft, aircraft engines, trucks, locomotives, industrial containers, road and high way construction, cottages, single and multiple dwellings, land and inventories. There is always a wide contribution of working hours and employees efforts in growth of Canadian economy. The decline in acceleration in Canadian productivity fro -0.3 percent per years to 1.0 percent per year suggests significant improvements and changes in technology by which productivity can be increased. The investments in ICT have grown at an average annual rate to 16, 2 % in the era of 1981 till 2000, growth was much faster than other two assets classes. Despite of high growth in Canadian market, ICT equipments had a little share in business sector. In the year, 2000 ICT equipments stock accounted as 6.4 percent which also includes 3.9 percent of equipments and assets.

Investment:

            Although investment sector also showed a similar trend same as in development and growth sector. However at some points, investment in Canadian market showed more sensitivity to business cycle. It increases 1.7 percent per year and it was recorded up to 11.9 percent between 1995 and 2000 and contributed a lot in economic growth of to boost up GDP of that particular era. It is recorded hat growth of capital services is higher than growth of capital tock, time to time shifts are considered as changes in capital quality. It is always recommended and consider good to compare (Gentzoglanis, 1989). Canadian capital growth with US capital growth as it bring a clear and broad view of maintaining resources and gives complete and clear understanding about proper view about allocation of resources in order to obtain high capital growth. There are number of economic sources include which plays an important role in economic growth, different sources include Framework, capital formation etc. Upcoming trends of economic growth have bought great and acceptable changes in Canadian economic market. Number of models and augmentation are used in order to obtain and compute correct findings and exact figures: Hicks Neutral augmentation is widely used for computing facts and figures:

                                   YT=AtF (Kt .Lt)

Multifactor productivity growth has also wide role in capital market. There is a wide differences between productivity growth of two countries is because of Canada’s relative multi productivity during year 1995-2000. Canadian Productivity in year 1995 -2000 showed a great difference between US productivity and Canadian productivity. Sources of Economic growth also play an important role in economic productivity and capital growth. Progress in IT technologies has bought great and dynamic change sin Canadian market.

Information Technology and Canadian Economy:

            Information technology in all fields works well and has many advantages over manual execution of tasks. Same in case of Canadian economy, information technology is now widely used in different fields of Canadian economy in order to increase growth in productivity and capital (Pierre, 2003) Canadian economic development is founded on the growth of information technology and it enables Canada to focus on the use of natural abundant resources. Due to information technology, Canada is now capable to give value to its natural abundant resources. Canadian industrialization depends on number of other factors including fusion of technology, use of abundant natural resources and technological development in Canada. As Canada is well developed country but it still it highly relied on importing technologies from foreign entities. Canada is highly relied on borrowed and imported technologies and its number of industries is going on because of imported and borrowed resources. Information technology gives the new and clear understanding to Canadians official that use of natural resources can enable them to produce number of things themselves. With proper use of resources Canada could be able to produce number of things itself rather than depending and borrowing from others. This is not appropriate for Canadian economy to spend its annual income on borrowing resources, technologies from foreign entities. (Jorgenson, 1993)

With little efforts Canada can produce technology and other resources itself. Information technology has given rise to the use of natural resources rather than borrowing from external entities. It highly depends on the Canadian industrialist, how to adapt rapid changes and new forms of technology and use them according to market’s demand and requirements. Demand and requirements have a great relationship with supply and to meet the supply requirements markets increase their investments for stability by increasing their capital and growth per anum. Dramatic changes take place in Canadian economy in past few years (Baldwin, 1995)

Technological Choices and Regulation:

              The Canadian economic environment changes time to time and great changes gives new turn to Canadian economy. Canadian manufacturing firms also faced great challenges with respect to time and external environment. Over last forty years it has been observed that there is a strong need of use of new and advanced technology in order to obtain high revenues and capital growth. Technology changes and new regulations and deregulations economic shocks all have been important part in whole Canadian environment. There are number of models which estimates the weak points of economic growth and assumption are always keep minimal in these situations. Theories of international trade are still not applied properly in number of markets. Different factors include like distance trade, price variation across distances, country relative productivity. Based upon above factors, it can easily observe that geography details and locations affect a lot in economy of any country. Number of different researches showed that geographical locations has a lot to do with economy and affects greatly on economy of any country. Geographical barriers increase transportation cost and other related charges. Information technology gives country’s economy a new turn based on number of facts. Different models are present for obtaining best results and increase growth. Number of models is specially designed keeping in mind the requirement and needs of today’s market and international standards.

The impact of information technology does not relate only to large firms, small firms can also take advantage of information technology in order to achieve high goals in market. Since 1975, economic market is running under different rules and different standards. Industrial organization is now linked with different external environment.

           In both, Canada and the U.S economic growth has recently done very well as compared to the last few decades. From 1995, productivity statistics increased a lot and have begun to reveal productivity and capital formation in ICT technologies. New and advanced technologies in ict have driving down prices of computers and communication equipment. Pattern of growth should be from both perspective i.e. quantity and quality components (Solow, 1957). These commonest helps in differentiating between economic growth , participation, funds etc  in both regions counters U.S and Canada ICT technologies has played an important role in economic growth. ICT technologies have great contribution in Canada’s economy. ICT technologies and information technology was the largest contribute to growth within capital service sin the era of 1990. 1990 has proved itself “a year of success” in Canadian economy. But ICT technologies and information technology contribution in Canada is les than in united states and there is a need to develop strong thought to use abundant natural resources in different things in order to make itself established and stable. In 1995, economic growth of Canada done a great impact and also there was a significant rise in capital growth. In both United States and Canada information technology is a great contributor in capital services. Different things are involved in economic growth of Canada (Baldwin, 2006) Changes regarding asset class also made some chance sin behavior of customers and country’s economy. Information technology has always provided friendly environment and guides user about every next step. Information technology guide completely.

Conclusion:

             Information technology deals with number of issues and now become a part of life in different ways. At a glance, no one can say that life is totally dependent on information technology. Information technology and computer systems are now being use din number of fields all over the world. In world wide thousands of applications are running in order t save time, money and efforts and it results best and replace large number of human resource. Information technology has a great impact on economy of all countries. During past few decades it has been observed that particularly in all fields information technology played an important role. In past few years Canadian economy faced great changes and challenges. The use of information technology taught Canadian industrialists to give value and importance to abundant natural resources. Technological resources are a significant factor in Canadian economy. Canadian capital growth differs from U.S capital growth.  Number of different factors involves in this difference, one of the most important factors is the difference of productivity growth of Canada and the U.S. The U.S has a large economy and great resources. The comparison between Canadian and US economy is necessary and needs to be done time to time for the betterment of economy and capital growth. Canadian growth is highly depends on government policies etc. there is strong need of proper use of information technology in economic growth.

References

Baldwin, 1995. Technology Use and Industrial Transformation: Empirical Perspectives. Analytical Studies Branch Research Paper Series 11F0019MIE1995075. Ottawa: Statistics Canada. Also published in Technology, Information And Public Policy. 1995.

Baldwin, 2006. Innovation Capabilities: The Knowledge Capital

Behind the Survival and Growth of Firms. The Canadian Economy in Transition Research

Paper Series. Catalogue no. 11-622MIE013. Ottawa: Statistics Canada.

Gentzoglanis, 1989, New Information Technologies And The Service Economy: The case of Canada Anastassios the Journal of Economic History, Vol XLIX no.3, The Economic History Association

Jorgenson, 1993, U.S. High-Tech Investment and the Pervasive Slowdown in the Growth of Capital Services

Pierre,2003, Technological Choices and Regulation: The Case of the Canadian Manufacturing Sectors, by The Canadian Journal of Economics / Revue Canadienne d’Economique Canadian Economics Association.

Solow, 1957, “Technical Change and the Aggregate Production Function,”. D. W. Jorgenson, Productivity and U.S. Economic Growth (Cambridge, Harvard University Press, 1987)

Thomas J. Courchene (Ed.). John Deutsch Institute for the Study Of Economic Policy. Kingston: Queen’s University.

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