• Journal of Korea Trade
• /
• v.26 no.4
• /
• pp.1-22
• /
• 2022

Purpose - This paper empirically investigates the effect of a rise in the global value chain (GVC) on the industry-level efficiency of resource allocation (based on plant-level inefficiency measures) in Korea, with a focus on various channels through which a rise in the GVC can increase competition among firms and thus induce resources to be allocated more efficiently across firms. Design/methodology - We empirically investigate the relationship between the industry-specific importance of GVC and the industry-level allocative inefficiency that is measured as the dispersion of the plant-level marginal revenue of capital (MRK) as in Hsieh and Klenow's (2009) influential model. We compute MRK dispersion for industries sorted by various characteristics that are closely related to firm/industry sensitivity to the GVC. In other words, we compute the average industry-level MRK dispersion for industries sorted by industry-specific importance of GVC and compute the difference between the two groups of industries (higher vs. lower than the median GVC); we also calculate the difference between industries sorted by industry-specific export (import) intensity. This is our difference-in-difference estimate of the MRK dispersion associated with the GVC for the export (import)-intensive industry versus the non-export (non-import)-intensive industry. This difference-in-difference estimate of the MRK dispersion conditional vs. unconditional on firm-level productivity is then calculated further (triple-difference estimate). Findings - A rise in GVC is associated with a decrease in the MRK dispersion in the export-intensive industry compared to the non-export-intensive industry. The same is true for industries that rely heavily on imports versus those that do not (i.e., import intensive vs. non-intensive). Furthermore, the reduction in the MRK dispersion in the export-intensive industry associated with an increase in the GVC is disproportionately greater for high-productivity firms. In contrast, the negative relationship between GVC and MRK dispersion in the import-intensive industry is disproportionately smaller for high-productivity firms. Originality/value - Existing studies focus on the relationship between GVC and aggregate output, exports, and imports at the country level. We investigate detailed firm/industry-level mechanisms that determine the relationship between GVC, trade, and productivity. Using the plant-level data in South Korea, we investigate how GVC is related to the cross-firm MRK dispersion, an important measure of allocative inefficiency, based on Hsieh and Klenow's (2009) influential economic theory. This is the first study to provide plant-level evidence of how GVC affects MRK dispersion. Furthermore, we examine how the relationship between GVC and MRK-dispersion varies across export intensity, import intensity, and firm-level productivity, providing insight into how GVC can affect firms' exposure to competition in the global market differently depending on market conditions and thus generate trade-related productivity gains.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.18 no.11
• /
• pp.409-415
• /
• 2017

This study examines the effect of pay dispersion on labor productivity by focusing on the inflow of newcomers into the tournament and the outflow of stayers from the tournament. According to tournament theory, the expansion of pay dispersion within the organization contributes to enhanced organizational performance by attracting high performers externally and by removing low performers internally within the organization. However, previous studies regarding tournament theory have overlooked the participant aspects. Therefore, this study explores how external hiring and involuntary turnover influence the effect of pay dispersion on labor productivity. This paper hypothesizes that pay dispersion will have a positive effect on labor productivity. Moreover, this paper predicts that the inflow of new competitors will strengthen the positive effects of pay dispersion on labor productivity, whereas the outflow of incumbents will weaken this relationship. Empirical results showed that pay dispersion increased labor productivity and the inflow of newcomers strengthened this positive relationship. However, contrary to our prediction, the outflow of incumbents weakened the positive effect between pay dispersion and labor productivity. These theoretical arguments and empirical findings highlight the proper conditions should be equipped to practically achieve the positive effect of pay dispersion on labor productivity.

• KDI Journal of Economic Policy
• /
• v.37 no.3
• /
• pp.31-53
• /
• 2015

According to the macroeconomic allocation efficiency measure, particularly based on the methodology of Hsieh and Klenow (2009), Korea's allocation efficiency in the manufacturing industry deteriorated in the 2000s compared to that in the 1990s. This study compares the potential TFP gain when resource allocation is removed, an indicator of allocation inefficiency according to Hsieh and Klenow (2009), and the productivity dispersion in the Korean manufacturing industry. It finds that the TFP gain may be better explained by TFP dispersions rather than proxies related to factors of distortion. The findings imply that we should investigate the sources of TFP dispersion rather than the sources of distortion to explain increases in the TFP gain (or TFP loss), which is considered as allocation inefficiency in the literature.

• Journal of Labour Economics
• /
• v.40 no.4
• /
• pp.1-31
• /
• 2017

Recent empirical studies highlight the importance of between-firm or between-establishment factors in rising wage inequality. Examining the establishment-level data from the Mining and Manufacturing Survey of 2000-14, this paper finds that overall between-establishment wage dispersion has increased in Korea. However, unlike other OECD countries, the divergence occured in the lower tail of the wage distribution. Dispersion in labor productivity exhibits a similar movement, therefore explains the widening wage dispersion. In contrast, the link between wages and total factor productivity is much weaker, which appears to be associated with inefficient capital reallocation. I also find much heterogeneity in the productivity-wage relationship across productivity distribution. The most productive establishments turn the smallest portion of productivity gains into wage increases.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.18 no.2
• /
• pp.127-139
• /
• 2023

Compensation and pay dispersion has been rigorously scrutinized to investigate their impacts on productivity and organizational performance. However, it is difficult to find a systematic study on the systematic dynamics of compensation and pay dispersion effects specifically in the context of Korean venture companies. Venture companies should manage their organizational resources efficiently to maximize their organizational performance through pay structure by efficiently managing the inherent resources. However, we acknowledge that empirical studies on how compensation and pay dispersion affect organizational productivity and performance are rare to find in the Korean context. To overcome this supplement limitation, this study hypothesized that (1) pay and members' productivity are positively related, (2) pay dispersion and organizational productivity have U shaped relationship, and (3) organizational productivity mediates the positive relationship between compensation and organizational performance. Venture companies and professional sports teams share manifold common characteristics such as size, financial circumstances, and operational objectives. We collect 9 seasons (2013~2014 - 2021~2022) of 10 teams' data of Korean Basketball League teams to test our hypotheses. Methodologically, the assessment of our analysis is rendered with PROCESS macro model 58. The statistical results showed that all hypotheses are statistically supported. This study explains how compensation and pay dispersion affect organizational productivity and performance of venture companies in Korea.

• Journal of Navigation and Port Research
• /
• v.28 no.4
• /
• pp.285-291
• /
• 2004

The productivity of container terminal is determined by its various operation methods. This paper aims at finding out the factors to enhance the productivity of container handling of quay crane, using simulation technique. Three levels of decision making in terminal operation, strategy, and tactics and operation are selected for defining parameters of simulation The result of the simulation and test shows that the significant factors to improve the productivity are the stack height of container, block dispersion and the distance in yard planning for shipment. Decision making in the operation level, however, is of significance in the mixed condition of strategic and tactical level. The result shows meaningful guidelines in decision making under strategic, tactical and operation level.

• Journal of The Korean Society of Agricultural Engineers
• /
• v.50 no.4
• /
• pp.39-50
• /
• 2008

A study on fugitive dust dispersion was conducted at Saemanguem reclaimed area located at the west coastal area of Jeon-buk Province Total reclaimed area is 40,100ha developed by building a 33km long sea dike through Gunsan, Gimje, and Buan. (Land: 28,300ha, Fresh Water Lake: 11,800ha) After this area was completely reclaimed in 2006, there has been high possibility of dust generation and dispersion to the neighboring area. The dust generated at the reclaimed land was composed mainly of minerals with high salinity, and it could make harmful effect on crop production as well on to human's health such as eye irritation and respiratory disease. Especially, when those aerosol particles are reached on the leaves of farm crops, the photosynthesis and respiration of the plants can be under restraint resulting in the decrease of agricultural productivity of the nearby farm areas. Furthermore, highly concentrated salty particles can directly damage the leaf cells. In this study, field experiment has been conducted to regularly measure the locally suspended dust particles and analyze how they were dispersed to the neighboring areas. The collected dust particles were analyzed to examine theirs sizes, concentrations, and components. The SPSS statistical program was also used to separate the dust concentration generated by the reclaimed land from the total dust concentration measured at the measuring locations.

• Journal of The Korean Society of Agricultural Engineers
• /
• v.61 no.6
• /
• pp.21-30
• /
• 2019

Livestock odor is comprised of mixed type of odorous compounds. Among these, ammonia ($NH_3$) and hydrogen sulfide ($H_2S$) are the two known major odor causing substances. Because high odor concentration reduces productivity of livestock and causes damage to the surrounding communities, quantitative analysis is needed to manage the odor inside and outside the livestock facilities. It is also necessary to evaluate odor dispersion according to the distance between the receptors taking into account the influence of odor source and weather condition. Therefore, in this study, we tried to evaluate the internal environment and odor dispersion from experimental pig house considering weather conditions. An experimental farm was specifically selected to eliminate the interference of odors generated by adjacent farms. $NH_3$ and complex odor were quantitatively analyzed using a gas detector and air dilution sensory method. The concentration of $NH_3$ and complex odor in pig house showed a distinct concentration difference according to the cleaning and ventilation conditions. $NH_3$ concentration and complex odor was lower than emission standard in the pig house and at the site boundary. The average $NH_3$ concentration (P1~P3) and the $NH_3$ concentration at the site boundary (S1) were strongly correlated with R=0.77. While the correlation for complex odor inside and at the site boundary had R=0.52. The correlation coefficient between $NH_3$ and the complex odor was 0.80.

• Korean Journal of Soil Science and Fertilizer
• /
• v.40 no.1
• /
• pp.57-63
• /
• 2007

Soil aggregation has been considered as an important factor not only for increasing soil productivity and soil quality but also improving nutrient use availability and water use efficiency. However, the relationship between soil aggregation and soil properties hasn't well reported for Korean soils. Objective of this research was to identify the relationship among soil water-stable aggregate (WSA), soil properties and soil dispersion ratio. Soil samples were analyzed for water-stable aggregate, Middleton's dispersion ratio, and soil physical and chemical properties. Water-stable aggregate was significantly correlated to soil textural properties, soil organic matter, and exchangeable cations. Middleton's dispersion ratio was significantly correlated with water-stable aggregate ($r=-0.76^{***}$). Regression equation for water-stable aggregate was estimated by Middleton's dispersion ratio (Y=-0.79X + 96.49; $r^2=0.58^{**}$). In this research, we conclude that water-stable aggregate was significantly correlated with some soil properties and was able to be estimated by rapid and easily measurable Middleton's dispersion ratio.

• Corrosion Science and Technology
• /
• v.18 no.1
• /
• pp.16-23
• /
• 2019

Steels for automotive fuel tank require unique properties such as corrosion resistance for fuel, welding for joining, forming for press, and painting for exterior. Recently, automakers have been requiring excellent seam weldable steels to enhance manufacturing productivity of fuel tank. Thus, POSCO developed a new type of functional steels coated with nano-composite thin layer on Zn-Ni plating steels. The nano-composite coating solution was prepared by mechanical fine dispersion of solutions consisting of polymeric resin and nano-composite materials in aqueous media. The composite solution was coated on the plating steel surface by using roll coater and cured through induction furnace. These new developed plating steels were evaluated for quality performances such as seam and spot weldability, press formability, and corrosion resistance. These new functional steels coated with nano-composite layer exhibited excellent seam weldability and press formability. Detailed discussion of coating solution and experimental results suggest that nano-sized composite dispersion as coating layer plays a key role in enhancing the quality performance.