Service-Driven Growth Pattern In IT Industries And Contributing Factors:A New Pattern In The Korean Industrial Development Perspective

Service-Driven Growth Pattern In IT Industries And Contributing Factors:A New Pattern In The Korean Industrial Development Perspective

This paper examines the pattern behind rapidly growing Koreas IT industries. Korea has characterized economic growth based on export demand rather than domestic demand at the traditional industries such as automobile, electronics, steel, and shipbuilding etc. However, the recent development of IT in...

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Veröffentlicht in:The international business & economics research journal 2011-02, Vol.3 (4)
Hauptverfasser: Lee, Duk Hee, Nam, Changi, Yi, Junesuh
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Nam, Changi
Yi, Junesuh
description This paper examines the pattern behind rapidly growing Koreas IT industries. Korea has characterized economic growth based on export demand rather than domestic demand at the traditional industries such as automobile, electronics, steel, and shipbuilding etc. However, the recent development of IT industry is indicating a different aspect from traditional sectors. The rapid growth in service demand is becoming a key factor in the rapid growth and high competitiveness of IT industry. A statistical estimation testing relationship between mobile telecommunication, Internet service, and wireless equipment, computer, strongly supports service-driven growth pattern of IT industry. Strong network externalities in demand side, governments demand promotion policies, residential environment, and users preferences, are main contributing factors to this new growth pattern.
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