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Abstract

An analysis of factors affecting the growth of Korean advertising industry

 

Bong-chul Kim, Ph.D. / Senior researcher, Advertising Research Institute,
Korean Broadcasting Advertising Corp

 

The present study examined the factors affecting the growth of Korean advertising industry by analyzing the connected input-output tables in constant prices in 1985, 1990, and 1995.

The study identified four categories in relation to the growth of Korean advertising industry--production growth, added value growth, employment growth, and revenue growth. The study tried to find the factors influencing the four categories of the growth.

The results revealed that domestic consumption is the most influential factor on the growth of Korean
advertising industry. Specifically, while technological changes mainly contributed to the production growth, investment and export contributed to the added value growth, employment growth, and revenue growth.

The study implies that Korean advertising industry heavily depends on the domestic consumption. Therefore it is recommended that Korean advertising industry needs to diversify the factors that might affect the growth.

 

* Key Word : advertising industry, input-output analysis, input-output table, economic growth