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ICT Investment for Energy Use in the Industrial Sectors pp 115–146Cite as

Productivity Analysis of South Korean Industrial Sector

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Part of the book series: Lecture Notes in Energy ((LNEN,volume 59))

Abstract

This chapter presents empirical findings on industrial productivity changes in South Korea between 1980 and 2009, focusing on how investment in ICT and energy use, influence the productivity growth. A dynamic factor demand model is applied which allows for considerable flexibility in the choice of the functional form of the production technology, and in the expectation formation process. The objective is to estimate the production structure, and the demand for energy, materials, labors, ICT capital, and non-ICT capital for 30 South Korean industrial sectors. In particular the focus is on the ICT capital-energy use relationship, and the effect of this relationship on the TFP growth.

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Notes

  1. 1.

    The assumptions are (i) producers are in long run equilibrium, (ii) the technology exhibits constant returns to scale, (iii) output and inputs markets are competitive, and (iv) input factors are utilized at a constant rate (Nadiri and Prucha 2001).

  2. 2.

    See Fig. 7.4 and Table 7.5 for comparing between the industrial characteristics and the rate of technical change.

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Authors and Affiliations

  1. SMC University, Zurich, Switzerland

    Nabaz T. Khayyat

  2. Seoul National University, Seoul, Korea (Republic of)

    Nabaz T. Khayyat

  3. Computer Science and Engineering Department, University of Kurdistan Halwer, Erbil, Iraq

    Nabaz T. Khayyat

  4. School of Business Management, University of Liverpool, Liverpool, UK

    Nabaz T. Khayyat

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Khayyat, N.T. (2017). Productivity Analysis of South Korean Industrial Sector. In: ICT Investment for Energy Use in the Industrial Sectors. Lecture Notes in Energy, vol 59. Springer, Singapore. https://doi.org/10.1007/978-981-10-4756-5_7

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  • DOI: https://doi.org/10.1007/978-981-10-4756-5_7

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