Information technology and economic development in Korea: A causality study

International Journal of Technology Management

Volumn 27, Issue 1, 2004, Pages 57-67

  Yoo, Seung Hoon ^a   Kwak, Seung Jun ^b  

^a Hoseo University   (South Korea)

^b Korea University   (South Korea)

Author keywords

Co integration; Economic development; Granger causality; Information technology; Unit root

Indexed keywords

ECONOMIC AND SOCIAL EFFECTS; INDUSTRIAL ECONOMICS; INFORMATION TECHNOLOGY; INVESTMENTS; TIME SERIES ANALYSIS;

ECONOMIC DEVELOPMENT; GRANGER CAUSALITY;

INDUSTRIAL MANAGEMENT;

EID: 1342287553     PISSN: 02675730     EISSN: None     Source Type: Journal    
DOI: 10.1504/IJTM.2004.003881     Document Type: Article

References (35)

1. Hardy, A. (1980) 'The role of the telephone in economic development', Telecommunications Policy, Vol. 4, pp.278-286.
2. Leff, N.H. (1984) 'Externalities, information costs, and social benefit-cost analysis for economic development: an example from telecommunications', Economic Development and Cultural Change, Vol. 32, pp.255-276.
3. Wilson, R.H. and Teske, P.E. (1990) 'Telecommunications and economic development: the state and local role', Economic Development Quarterly, Vol. 4, pp.158-174.
4. Norton, S.W. (1992) 'Transaction costs, telecommunications and the microeconomics of macroeconomic growth', Economic Development and Cultural Change, Vol. 41, pp.175-196.
5. Saunders, R.J., Jeremy, J.W. and Bjorn, W. (1994) Telecommunications and Economic Development, 2nd ed., Baltimore, MD, John Hopkins University Press.
6. Edirisuriya, P. (1995) 'Telecommunications and economic growth: empirical evidence from ASEAN countries', Discussion Paper 95-29, School of Economics and Commerce, La Trobe University, Australia.
7. A good overview of the literature is found in Maddock [8].
8. Maddock, R. (1995) 'Telecommunications and economic development', Discussion Papers 95-14, School of Economics and Commerce, La Trobe University, Australia.
9. Dholakia, R.R. and Harlam, B. (1984) 'Telecommunications and economic development: econometric analysis of the US experience', Telecommunications Policy, Vol. 18, pp.470-477.
10. Wang, E.H. (1999) 'ICT and economic development in Taiwan: analysis of the evidence', Telecommunications Policy, Vol. 23, pp.235-243.
11. Blomstrom, M., Lipsey, R.E. and Zejan, M. (1996) 'Is fixed investment the key to economic growth?', Quarterly Journal of Economics, Vol. 111, pp.269-276.
12. Madden, G. and Savage, S.J. (1998) 'CEE telecommunications investment and economic growth', Information Economics and Policy, Vol. 10, pp.173-195.
13. Cronin, F.J., Parker, E.B., Colleran, E.K. and Gold, M.A. (1991) 'Telecommunications infrastructure and economic growth: an analysis of causality', Telecommunications Policy, Vol. 15, pp.529-535.
14. Cronin, F.J., Parker, E.B., Colleran, E.K. and Gold, M.A. (1993) 'Telecommunications infrastructure investment and economic development', Telecommunications Policy, Vol. 17, pp.415-430.
15. Zhu, J. (1996) 'Comparing the effects of mass media and telecommunications on economic development: a pooled time series analysis', Gazette, Vol. 57, pp.17-28.
16. Ministry of Information and Communications (1999) Cyber Korea 21: an Informatisation Vision for Constructing a Creative, Knowledge-Based Nation, Seoul, Korea.
17. Schwartz, G.G. (1990) 'Telecommunications and economic development policy', Economic Development Quarterly, Vol. 4, pp.8391.
18. Granger, C.W.J. (1969) 'Investigating causal relation by econometric and cross-sectional method', Econometrica, Vol. 37, pp.424-438.
19. Hsiao, C. (1981) 'Autoregressive modeling and money-income causality detection', Journal of Monetary Economics, Vol. 7, pp.85-106.
20. Guilkey, D.K. and Salemi, M.K. (1982) 'Small sample properties of the three tests of causality for Granger causal ordering in a bivariate stochastic system', Review of Economics and Statistics, Vol. 64, pp.668-680.
21. Geweke, J., Meese, R. and Dent, W. (1983) 'Comparing alternative tests for causality in temporal systems: analytic results and experimental evidence', Journal of Econometrics, Vol. 21, pp.161-194.
22. Granger, C.W.J. and Newbold, P. (1974) 'Spurious regressions in econometrics', Journal of Econometrics, Vol. 2, pp.111-120.
23. Stock, J.H. and Watson, M.W. (1989) 'Interpreting the evidence in money-income causality', Journal of Econometrics, Vol. 40, pp.161-182.
24. Engle, R.F. and Granger, C.W.J. (1987) 'Cointegration and error correction: representation, estimation and testing', Econometrica, Vol. 55, pp.251-276.
25. Phillips, P.C.B. and Perron, P. (1988) 'Testing for a unit root in time series regression', Biometrika, Vol. 75, pp.335-346.
26. Toda, H.Y. and Phillips, P.C.B. (1993) 'Vector autoregressions and causality', Econometrica, Vol. 61, pp.1367-1393.
27. Akaike, H. (1969) 'Fitting autoregressions for prediction', Annals of the Institute of Statistical Mathematics, Vol. 21, pp.243-247.
28. The Akaike FPE criterion is quite appealing because "it balances the risk due to bias where a lower order is selected and risk due to the increase of variance when a higher order is selected" [19, p.88].
29. The use of GDP, rather than gross national product, may be more appropriate in the analysis of the causal relationship, because the country's total IT investment depends upon goods and services produced within the country, not outside the country.
30. World Bank (2000) World Development Indicators on CD-ROM, Washington, DC.
31. International Telecommunications Union (2000) World Telecommunications Indicators Database, 5th ed., Geneva, Switzerland.
32. Pindyck, R.S. and Rubinfeld, D.L. (1997) Econometric Models and Economic Forecasts, 4th ed., Singapore, McGraw-Hill.
33. Fuller, W.A. (1976) Introduction to Statistical Time Series, New York, Wiley.
34. Pantula, S.G., Gonzalez-Farias, G. and Fuller, W.A. (1994) 'A comparison of unit-root test criteria', Journal of Business and Economic Statistics, Vol. 12, pp.449-459.
35. More detailed estimation results are omitted here for brevity. However, they are available from the senior author upon request.