Information technology and economic development in Korea: a causality study Online publication date: Mon, 10-May-2004
by Seung-Hoon Yoo, Seung-Jun Kwak
International Journal of Technology Management (IJTM), Vol. 27, No. 1, 2004
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.
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