Technical Coefficients and Trade Coefficients in South Korean and in Japanese Economies: Are they the Same?

This paper compared technical coefficients and trade coefficients in South Korean economy to those in Japanese economy based on 30-sector classification of world input-output tables of the year of 2000, 2005 and 2010. The results showed that South Korean economy had higher technical coefficients than that of Japanese economy, but statistically they were not significant. South Korean economy used more input to produce output compared to that of Japanese economy. Technical index of South Korean economy was lower than that of Japanese economy, but statistically it was not significant. Based on trade coefficients, this study showed that South Korean economy had lower domestic component than Japanese economy did. This difference was statistically significant. Japanese economy, technically, worked more efficiently, and Japanese economy used more domestic input. This paper also revealed that technical index had a positive correlation with domestic component.