Information Technology and Economic Growth: A Comparison between Japan and Korea

Abstract

In this paper we compare sources of economic growth in Japan

and Korea from 1985 to 2004, focusing on the role of information

technology (IT), based on the framework of Jorgenson and Motohashi

(2005). In both countries, the information technology industry is

an important source of economic and productivity growth from the

output side. In addition, active IT investments are supposed to

lead to substantial IT capital service contribution to economic

growth from the input side.