Go to the Mian menu
Go to the Mian menu

i-KIET Issues & AnalysisKIET Korea Institute for Industrial Economics and Trade

  • home
  • Publications
  • i-KIET Issues & Analysis

Changes in the industrial linkage of the ICT industries and their implications

Author Lee, Geonwoo Date 2015.05.26 Issue No 614
File

By utilizing the input-output analysis, this article analyzed how the ICT industry’s roles in the national economy, the linkage with other industries, and its economic spillover effect have changed since the mid-1990s

Boosted by the rapid growth centered on the ICT manufacturing sectors, the level of contribution by ICT industries to the economic growth has increased sharply 

As a result of analyzing growth factors, the ICT manufacturing sectors have shown export-oriented growth patterns, as export factors were stronger than the domestic final demand factors, which are the combination of consumption and investment factors. In terms of ICT services, however, the biggest factor was the domestic final demand 

The use of ICT intermediate goods is on the gradual increase for the entire industry, but the utilization by the other industries is still very low when excluding ICT sectors  

Recently the economic spillover effects of the ICT industries by unit demand in terms of production, value-added and employment have been weakened simultaneously
● In particular, the production inducement effect of the ICT industries is excessively low compared with the level of economic development

It is needed to create an ecosystem centered on ICT services, facilitate exports of ICT services, come up with policy foundations to enhance the use of ICT, prioritize policies to develop technologies related to parts, basic materials and high-tech devices, and substitute imports