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Information Technology's Impact on Firm Structure: A Cross-Industry Analysis

Since 1984, the U.S. telecommunications services industry has experienced profound changes caused by deregulation and rapid technological change. Competition now exists in almost all segments of the domestic industry. Local services, the only sector of the industry that remains monopolistic, currently face the prospect of increased competition as changes in technology and law enable various providers to compete in local markets.

The United States is the largest market for telecommunications services, with approximately one-third of the total global market in 1993, as measured by revenue. Employment growth in the industry has been relatively flat, while productivity gains have been rapid. Value-added per employee hour grew at an annual rate of 6.1 percent between 1982 and 1992. Gross output per employee grew by 6.4 percent over the same period. The telecommunications services industry in the United States leads Japan, Germany, France, and the United Kingdom in total factor productivity.

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Engines of Growth: Manufacturing Industries in the U.S. Economy 150.97 KB