The Korean Economic Review
Aggregate Total Factor Productivity and Resource Reallocation Effect of ICT Sectors in Korea
Keun Hee Rhee (Korea Productivity Center), Hak K. Pyo (Seoul National University)Year 2012Vol. 28No. 2
The paper estimates total factor productivity and resource reallocation effect in ICTsectors from the cross-country data of the USA, Japan, EU7 and Korea. The source ofeconomic growth has shifted from the non-ICT sector to the ICT sector after the ICT boomin the USA, Japan, EU7, and Korea. We find the contribution of ICT-producing sector tovalue-added growth and TFP growth has slowed down, but that of the ICT-using sector hasgrown since the middle of 1990s. In addition the reallocation effects of capital areoutweighed in ICT-using service sectors such as trade and finance, and the reallocationeffects of labor tend to be higher in non-ICT sectors, ICT-producing service, and ICTproducingmanufacturing sectors, among others.