Title: Information technology and economic development in Korea: a causality study

Authors: Seung-Hoon Yoo, Seung-Jun Kwak

Addresses: School of Business and Economics, Hoseo University, 268 Anseo-Dong, Cheonan, Chungnam, 330-713, Korea. ' Department of Economics, Korea University, 5-1 Anam-Dong, Sungbuk-Ku, Seoul, 136-701, Korea

Abstract: This paper examines the causality issue between information technology (IT) investment and economic development for Korea by applying modern time series techniques. Tests for unit roots, co-integration, and Granger causality are presented. The results show that bi-directional causality runs from IT investment to economic development for Korea. This means that increased IT investment directly affects economic development and that an increase in real income also influences IT investment. The study also discusses the implications of the results for addressing IT policy in Korea.

Keywords: information technology; economic development; Granger causality; unit root; co-integration; Korea.

DOI: 10.1504/IJTM.2004.003881

International Journal of Technology Management, 2004 Vol.27 No.1, pp.57 - 67

Published online: 10 May 2004 *

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