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Causal relationship between ICT R&D investment and economic growth in Korea

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  • Hong, Jae-pyo

Abstract

This study examined the Granger-causality between R&D investment and economic growth for Korea's ICT industry. Bidirectional Granger-causality was observed between ICT R&D investment and economic growth, and this result implies that ICT R&D investment is driven by economic growth and vice versa. When ICT R&D investment was classified into public sector and private sector, the results showed the private ICT R&D investment had stronger relationship with economic growth compared to public the ICT R&D investment. It means the private ICT R&D investment has stronger attribute of leading economic growth and induced investment by economic growth than the Public ICT R&D investment. The results also reported bidirectional causality between public ICT R&D investment and private ICT R&D investment. The establishment of two-way Granger-causality between public sector and private sector indicates a virtuous cycle has taken hold.

Suggested Citation

  • Hong, Jae-pyo, 2017. "Causal relationship between ICT R&D investment and economic growth in Korea," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 70-75.
    • Handle: RePEc:eee:tefoso:v:116:y:2017:i:c:p:70-75
    DOI: 10.1016/j.techfore.2016.11.005
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