Abstract
The industrial structure changed into service industry from manufacturing industry and has been changing into knowledge-based service industry based on knowledge world widely. Finland is an economically minor country but core country in knowledge-based service industry. Moreover the interest in knowledge-based service industry is now growing. This study attempts to compare the economic impacts of knowledge-based service industry between Finland and Korea using an inter-industry analysis. Specifically, the study analyzes and compares between Finland and Korea about production-inducing effect and value added inducing effect of knowledge-based service industry based on demand-driven model. Moreover, the study deals with supply shortage effect and sectoral price effect by using supply-driven model and Leontief price model, respectively. These analyses have made by dealing the knowledge-based service industry as exogenous not endogenous. The results show that, knowledge-based service industry induces production-inducing effect of 0.2731 won in other industries in Korea and 0.3493 won in other industries in Finland, value-added-inducing effects of 0.1410 won in other industries in Korea and 0.2086 won in other industries in Finland. results from using demand-driven model are higher in Finland than Korea. Knowledge-based service industry induces supply shortage effects 0.6713 won in other industries in Korea and 0.72628 won in other industries in Finland, and sectoral price effects are 0.1190% in Korea and 0.2302% in Finland due to the price increase of 10% of knowledge-based service industry.
| Translated title of the contribution | A Comparative Study on Knowledge-based Service Industry of Korea and Finland |
|---|---|
| Original language | Korean |
| Pages (from-to) | 969-988 |
| Number of pages | 20 |
| Journal | 산업경제연구 |
| Volume | 21 |
| Issue number | 3 |
| State | Published - Jun 2008 |