International Competitiveness of Korea Service Industry

Abstract

Problem statement: This study examines the competitiveness of Korean Service Industry through the empirical analysis based on the comparative advantage index and suggests the policy implications from the research results. Approach: The model of empirical analysis was set using the equation of ratio of Export and Import (EXIM) and net export (XM) for service industry. Results: The present study showed the estimation results of the EXIM and XM. Conclusion: With regard to the competitiveness of service industry, the analysis results suggested the policy implications: First, it was necessary to introduce an incentive system for skilled workers and invest more in research and development in order to increase the labour productivity of human capital. Second, government should implement the open market policy to liberalize the labour movement and induce low-paid labour.