Publication
The Korean Journal of Economic Studies
International Comparison of Total Factor Productivity in ICT Industries
Sunyoung JungYear 2011Vol. 59No. 1
Abstract
This paper attempts to analyze total factor productivity(TFP) growth forKorea’s information and communication technology(ICT) industries using astochastic frontier production approach and to compare these results with themajor industrialized countries. In the manufacturing sector of ICT, TFPgrowth rate in the 2000s has been significantly lower than the U.S. and Japan,due mainly to a continuous decrease in technical efficiency. Gross output andTFP growth for the ICT service sector both are found to be above averagelevel of developed countries, but technical progress is lower than those ofdeveloped countries. Based on the results of this paper, in order to improvethe productivity of ICT industry of Korea, policies to improve technicalefficiency for the ICT manufacturing industry and to accelerate technicalprogress for the ICT service industry should be considered.