• East Asian Economic Review
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• v.25 no.2
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• pp.151-174
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• 2021

This paper empirically examines whether and how inward foreign direct investment (FDI) affected industrial productivity in Korea during the 2000-2016 period, based on dynamic panel data of inflow FDI on an arrival basis from 427 manufacturing industries. The paper adds to the literature by analyzing whether both technology spillovers and industrial restructuring from inward FDI can differ according to industrial characteristics such as capital intensity, imported intermediate inputs, and tariffs. The empirical results show that the overall effects of inward FDI on total factor productivity (TFP) were statistically insignificant in general. However, the positive effects of inward FDI on productivity became statistically significant for industries with lower tariffs. Capital intensity were not involved in the relationship between inward FDI and productivity. Thus, the paper highlights that the results in previous studies with inward FDI on a notification basis were overestimated and inward FDI policies in Korea should focus on channels such as trade liberalization and the redistribution of production factors rather than capital accumulation.

• Journal of Korea Technology Innovation Society
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• v.9 no.3
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• pp.606-625
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• 2006

This Study is to show the impact of IT capital stock accumulation on the total factor productivity in 9 industries during 1980 through 2000. We construct the If capital stock using input and output table provided by Bank of Korea (2000). Using sequence testing methodologies, we investigate the nonstationary characteristics of the relevant data and test the cointegration relationship between total factor productivity and IT capital stock. Over the past two decades, IT capital stock contributed between 0.19 to 0.07 percentage point per IT capital stock on total factor productivity. Our empirical results, therefore, do not support Solow's IT paradox in using the long period panel data case in Korea.

• The Journal of the Korea Contents Association
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• v.15 no.3
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• pp.388-395
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• 2015

The purpose of this study is to estimate change of productivity of information and technology industry and to induce policy implications. The method of analysis is panel data analysis based on 11 Korean information and technology industry cross-section and 8 years time series. The result of estimate shows that producitivity of labor and capital and information and technology industry is positive, total factor productivity of information and technology industry is also positive. but total factor productivity decreased after 2008. In addition, the productivity of labor was increased, but the productivity of capital input was decreased. It means that the productivity of Korean information and technology industry was not improved despite increasing of labor and capital investment.

• Journal of Korea Technology Innovation Society
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• v.1 no.3
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• pp.364-373
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• 1998

This study examines the international competitiveness of the Korean information and telecommunication industry by using competitiveness index such as the RCA index, the Trade Specialization index, and the Total Factor Productivity. The results of this study show that the industry's competitiveness slightly decreases since 1995, but not its the total factor productivity. In conclusion, the industry has kept the competitiveness over all. Therefore, to keep or improve the competitiveness continuously, the industry is required the government's intensive investment and administrative support. And the industry should bring up by venture and small-medium-size-enterprises to have great economic impacts on other industries. Also, the increasing production and export promoting policy will be enhance the industry and improve nation's balance of trade.

• Journal of Korea Trade
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• v.26 no.6
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• pp.96-117
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• 2022

Purpose - Considering the recent instability of world economy and its heavy dependence on foreign, Korea must formulate breakthrough approaches to proactively cope with these adverse global developments. As such, this study aims to ascertain how participation in global value chains (GVCs) relates to corporate productivity and derive policy implications. Design/methodology - This study utilizes the microdata of Korean manufacturers to develop indicators of GVC participation at the enterprise level and analyzes the effects of GVC participation on the firm's total factor productivity by using fixed effect model. Findings - Enterprises with highest rates of export-side GVC participation see their productivity grow as their export-side GVC participation rates increase. In addition, when companies are classified by their export-side GVC participation rates, increasing export values improves all firm's productivity. In particular, those with low participation rates are analyzed to achieve higher productivity by increasing their imports, not only exports, which implies that companies with lower export-side GVC participation can boost productivity by reinforcing their export and import activities. Originality/value - This research paper distinguishes itself from others in that it makes a novel attempt to design the indicators of GVC participation at the enterprise level, not at the national or industry level. In addition, this study contributes to the existing literature by dividing companies into subgroups depending on their GVC participation rates for each of export and import and identifying variances in the effect of GVC participation on productivity growth among subgroups.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.109-117
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• 2021

This study investigates the effects of FDI and other macroeconomic variables on Total Factor Productivity (TFP) in selected ASEAN+3 countries from 1981 till 2016. Total Factor Productivity (TFP) for each ASEAN+3 country was constructed using the Malmquist productivity index method. Then, a panel ARDL framework (dynamic heterogeneous panel), namely Pooled Mean Group (PMG), Mean Group (MG), and Dynamic Fixed Effect (DFE) are employed in examining the effects of FDI and other controlling variables on TFP. The new findings show that FDI has a significant and positive impact on TFP in the long run and the short run in ASEAN+3 countries. Besides, the results also reveal that in the long run, other variables such as the average number of years of schooling and the ratio of high-skilled to low-skilled labor also have a significant and positive effect on TFP. However, economic openness, government expenditure on R&D, and interaction between countries and FDI have a negative and significant impact on TFP. These findings implied that the recipient countries must ensure their political stability and offer various incentives to attract more investors. Furthermore, the influx of foreign investors, especially large ones and lower costs, should be encouraged by each country as FDI inflows can boost their TFP growth.

• Environmental and Resource Economics Review
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• v.25 no.2
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• pp.277-297
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• 2016

This study is to analyze the effects of changing pattern of climate vaariables on total factor productivity of Korea manufacture industry. Changes in temperature, rainfalls and humidity which are the representative climate variables are used as main factors. Not only average values of the variables but those highest values are used as independent variables in the model, in order to consider the characteristic pattern of recent climate change, the high volatilities. The OLS results are unlike to previous literature that temperature and humidity had no significant impact on manufacturing productivity. An increase in the amount of precipitation was analyzed that impact negatively impacted. The analysis of panel data showed that temperatures and precipitation all that does not significantly affect the manufacturing. While the increase of the average humidity is shown to increase the total productivity of manufacture industry. In Korea, adaptation capability is important in determining the effects of climate change on productivity of manufacture industry.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.779-788
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• 2020

Commercial banks play an important role as the main source of funding in the transition process of Vietnam as a market economy. As a result, enhancing the efficiency and productivity of Vietnamese banks can decrease the lending cost for individuals and enterprises. This study is to measure and analyze the productivity change of Vietnamese banking system in different ownership cohorts and sources of this change during the period of restructuring (2011-2019). The Hicks-Moorsteen total factor productivity index is utilised to measure the productivity change and to identify the sources of this change. For an empirical analysis, the data of 28 Vietnamese commercial banks from 2011 to 2018 is collected from their financial statements including balance sheets and income statements. The results show an increase of Vietnamese bank productivity due to the technological progress. While foreign and joint-venture banks are the most advanced cohort, state-owned banks have the lowest rate of productivity growth. The restructuring program negatively impacts scale efficiency and this measure attributes to a decline in the overall efficiency of the banks. We also found that state-owned commercial banks are the most efficient group in the sense that they can achieve the maximal level of revenue from a given amount of expense.

• Proceedings of the Korean Statistical Society Conference
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• 2001.11a
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• pp.199-204
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• 2001

1997년 IMF 경제위기 이후 우리나라의 금융산업은 급격한 변화를 겪고 있다. 지난 4년간 은행들을 비롯한 금융기관들이 대형화를 통한 경쟁력 강화를 위해 합병이 실시되었다. 은행합병의 궁극적인 목적은 합병에 의해 규모를 대형화하고 업무범위를 다양화하여 수익규모를 증대시키고 수익원을 다원화하는 한편, 경영자원의 투입과 활용을 효율화하고 시장지배력을 확충하여 경영성과를 제고함으로써 기업가치를 증진시키는데 있다고 할 수 있다. 본 연구에서는 1997년 이후에 본격적으로 이루어진 합병은행들을 대상으로 맘퀴스트 ${\ulcorner}$Malmquist${\lrcorner}$ 총요소생산성(Total Factor Productivity) 지수를 사용하여 그 성과를 측정해 보았다.

• Korea Trade Review
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• v.41 no.5
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• pp.353-371
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• 2016

The purpose of this paper is to examine the structural change of Korean manufacturing industries and the differences of total factor productivity(TFP) between exporting industries and import substituting industries in Korean manufacturing industry from 1980 to 2013. The empirical results show that over half of total 13 industries have experienced changes of direction from import to export or export to import, which implies that there was a considerable structural change in Korean manufacturing industry. The output growth rates are higher in exporting industries than in import substituting industries. All industries employ more capital than labor during the period, which means that production methodology in Korean industries changes to a more capital intensive one. Finally, the growth rate of total factor productivity is higher in exporting industries than in import substituting industries, and it is also proved in panel regression analysis.