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영어

In this study, We measured the elasticity of substitution between labor and ICT capital input by estimating transcendental logarithmic (Translog) cost function which takes GDP, wage rate, prices of ICT and NICT capital as factors of cost function. Data was constructed as unbalanced panel data set using 26 industries of 6 countries (South Korea, the United States, the United Kingdom, Germany, Japan, Italy) for the period of 1970-2007. Cost function and share equations that were induced by Shephard’s lemma from it were estimated simultaneously using seemingly unrelated regression method (SUR). Conditions for homotheticity and homogeneity were imposed to the estimation procedure of cost function and were tested its validity by Wald test. Constant returns to scale (CRTS) restriction was not imposed because of the necessity of estimating the effect of scale economy which means cost down effect of output growth. We found a negative relationship (negative substitutability) between labor and ICT capital usage as a factor input. It means that deepening of ICT capital using would be a crowing-out of the labor force in the production process. These findings mean that job creation would be a difficult target for Park regime in South Korea even though it pursue the creative economy ambitiously. We also estimated the contribution rate of ICT capital to the GDP growth. We found that the use of ICT capital led to the improvement of productivity and economic growth as a whole. Compared with other advanced countries, Korea’s contribution rate of ICT capital to the GDP growth was lower than other countries. It means that ICT investment could be a good policy measure of strength of the potentiality of the whole economy in the present regime. One possibility for both of job creation and productivity growth is to use scale economy coming from massive investment of ICT capital in the creative economy. Another implication can be found in the relatively high negative substitutability of labor and ICT capital usage in the service sector. The development of service industry was suggested for the job creation in these days. But the intensive use of ICT would have two effects, one is about more active substitution of labor in the service industry compare to the manufacturing sector. Another is about job creation effect associated with the growth of the service industry. Policy combinations for minimizing labor substitution and maximizing productivity enhancement by use of ICT may be helpful for job creation.