How ICT Investment and Energy Use Influence the Productivity of Korean Industries?
This empirical study examines changes in industrial productivity in Korea between 1980 and 2009, focusing on how investment in information and communication technology (ICT) and energy use, influence productivity levels. A dynamic factor demand model is applied in order to link inter-temporal production decisions by explicitly recognizing that the level of certain factors of production cannot be changed without incurring so-called adjustment costs, defined in terms of forgone output from current production. In particular, we investigate how the ICT–energy relationship affects total factor productivity growth in 30 industrial sectors. Describing industry-specific productivity levels is important for policymakers when the allocation of public investment and support is limited. The results presented herein show that ICT/non-ICT capital investment are substitutes for labor and energy use. We also find a high output growth rate in the sampled sectors, and increasing returns to scale, whose effects on the TFP component are higher than those of technological progress.
|Date of creation:||16 Apr 2014|
|Date of revision:|
|Contact details of provider:|| Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden|
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- FUKAO Kyoji & MIYAGAWA Tsutomu & Hak K. PYO & Keun Hee RHEE, 2009. "Estimates of Multifactor Productivity, ICT Contributions and Resource Reallocation Effects in Japan and Korea," Discussion papers 09021, Research Institute of Economy, Trade and Industry (RIETI).
- Huggett, Mark & Ospina, Sandra, 2001. "Does productivity growth fall after the adoption of new technology?," Journal of Monetary Economics, Elsevier, vol. 48(1), pages 173-195, August.
- Lau, Lawrence J., 1986. "Functional forms in econometric model building," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 3, chapter 26, pages 1515-1566 Elsevier.
- M. Ishaq Nadiri & Ingmar R. Prucha, 1999.
"Dynamic Factor Demand Models and Productivity Analysis,"
NBER Working Papers
7079, National Bureau of Economic Research, Inc.
- M. Ishaq Nadiri & Ingmar Prucha, 2001. "Dynamic Factor Demand Models and Productivity Analysis," NBER Chapters, in: New Developments in Productivity Analysis, pages 103-172 National Bureau of Economic Research, Inc.
- Nadiri, M.I. & Prucha, I., 1999. "Dynamic Factor Demand Models and Productivity Analysis," Working Papers 99-09, C.V. Starr Center for Applied Economics, New York University.
- M. Ishaq Nadiri & Ingmar R. Prucha, 1999. "Dynamic Factor Demand Models and Productivity Analysis," Electronic Working Papers 99-005, University of Maryland, Department of Economics.
- Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003.
"ICT and Productivity in Europe and the United States: Where Do the Differences Come From?,"
Economics Program Working Papers
03-05, The Conference Board, Economics Program.
- Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003. "ICT and Productivity in Europe and the United States Where Do the Differences Come From?," CESifo Economic Studies, CESifo, vol. 49(3), pages 295-318.
- repec:umd:umdeco:prucha3 is not listed on IDEAS
- Polder, Michael & Leeuwen, George van & Mohnen, Pierre & Raymond, Wladimir, 2009. "Productivity effects of innovation modes," MPRA Paper 18893, University Library of Munich, Germany.
- Mokyr, Joel, 2005. "Long-Term Economic Growth and the History of Technology," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 17, pages 1113-1180 Elsevier.
When requesting a correction, please mention this item's handle: RePEc:hhs:cesisp:0358. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vardan Hovsepyan)
If references are entirely missing, you can add them using this form.