This paper attempts to analyze total factor productivity(TFP) growth for
Korea’s information and communication technology(ICT) industries using a
stochastic frontier production approach and to compare these results with the
major industrialized countries. In the manufacturing sector of ICT, TFP
growth rate in the 2000s has been significantly lower than the U.S. and Japan,
due mainly to a continuous decrease in technical efficiency. Gross output and
TFP growth for the ICT service sector both are found to be above average
level of developed countries, but technical progress is lower than those of
developed countries. Based on the results of this paper, in order to improve
the productivity of ICT industry of Korea, policies to improve technical
efficiency for the ICT manufacturing industry and to accelerate technical
progress for the ICT service industry should be considered.