The main purpose of this study is to analyse the digital divide and th determinants of ICT diffusion rate in Korean industries. We estimate the ICT diffusion function using the pooling data for this analysis. The results are as follows. First, the ICT...
The main purpose of this study is to analyse the digital divide and th determinants of ICT diffusion rate in Korean industries. We estimate the ICT diffusion function using the pooling data for this analysis. The results are as follows. First, the ICT capital accumulated in machinery & equipment, electrical machinery and construction industry is estimated to be 83% of total ICT capital stock in the 90s. Second, using the panel analysis, we find positive correlation among ICT diffusion, network effect and accumulation of human capital, which is more prominent in the service sector. Third, the estimation results show that the additional 1% increase of human capital accumulation will allow to increase the 0.69% of ICT capital intensity in Korean industries.