Comparative Study in Software and Healthcare Industries between South Korea and US Based on Economic Input–Output Analysis

Abstract

In the modern era, software technology is being used not only as a core technology for manufacturing but also in various industries, such as telemedicine services, and the importance of the healthcare industry is being emphasized due to the demand for improved quality of life from the increase in the general level of earnings. However, if the industry emits a lot of carbon dioxide (CO2), it is questionable whether it is a sustainable industry. This study aimed to analyze the economic linkage effect of software and healthcare industries in South Korea and the United States by applying input–output analysis and examine whether these industries are sustainable in terms of CO2 emissions. The input–output tables and CO2 emissions from 2005 to 2015 were used for analysis from OECD. As a result of the analysis, CO2 emissions from the software and healthcare industries were less than 1% in both South Korea and the United States, suggesting that these industries are well-suited for low-carbon development in these countries. The forward and backward linkage effects of the software industry are different between South Korea and the United States. Specifically, the backward linkage effect of the software industry is large in South Korea, and the forward linkage effect is large in the United States. The forward linkage effect of the healthcare industry is different in the two countries, but the backward linkage effect is not. It means that there are differences in the industrial structure of the two countries. The software and healthcare industries need to devise strategies to drive production in other industries while maintaining current low carbon emission levels.

Keywords

• software industry
• healthcare industry
• CO₂ emission
• input–output analysis
• linkage effects