An Input/Output Analysis on Integration of Information Technology in Korean Agriculture

Integration of information technology (IT) into Korean agriculture is expected to improve the performance of the industry through more efficient marketing and production. A brief review of the status of Korean agriculture regarding integration of information technology is provided. To estimate the impact of such integration into Korean agriculture, a standard input/output (I/O) analysis has been done, using the 1995 and 1998 I/O model, built by the Bank of Korea (2001). A 169 classification of Korean industries are used to analyze the relation of computer/computer peripheral equipments, communication, and computer related services with agricultural industries. Also, to consider the development of mail order through postal offices, e-commerce and home-shopping network for agricultural products, transportation related industries have been included in the analysis. The results imply that the Induced Production Coefficients (IPC) for Agricultural, Fishery, and Forestry (AFF) are much lower. than other leading industries, implying that AFF industry lacks the infrastructure for active adoption of IT. Comparison of IPCs within AFF industry implies that un-milled rice industry, barley, wheat, and other cereals industry, and vegetables and fruits industry need to have higher priority in investment for IT infrastructure.