• Environmental and Resource Economics Review
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• v.20 no.2
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• pp.291-308
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• 2011

The success of a target of 'low-carbon green growth' depends on whether installing energy-saving capital would result in an increase in industry's productivity growth. Defining total factor productivity from a dual cost function, this paper estimates the contribution of energy efficiency investment to productivity growth by analyzing the sources of growth of productivity index for the primary metal industries. Empirical results show that, on average, energy efficiency investment increased the annual rate of productivity growth by 1.16 percentage points over th period 1982~2006. In addition, The scale effect positively affected the contribution of energy efficiency investment on productivity growth.

• Journal of Korea Port Economic Association
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• v.24 no.4
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• pp.47-70
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• 2008

The purpose of this study is to estimate total factor productivity(TFP) growth by stochastic frontier function and to grasp contributing factors of its growth rate by decomposing the total factor productivity into efficiency change, technical progress, scale change, and allocation change. Annual growth rate of total factor productivity for 1990-2003 is 0.019 (1.9%), higher than that of overall industry (0.010). The main component of TFP growth is not efficiency change but technical progress. Contributing factors of total factor productivity growth are change of allocation efficiency in port industry, technical progress in sea-transportation industry, and change of scale efficiency in transportation-equipment industry. The change of total factor productivity shows a decreasing trend since late in the 1990s. The annual technical efficiency of port-logistics industry is less than that of overall industry. Capital elasticity for output (0.391) is higher than labor elasticity (0.227), but scale economy of port-logistics industry is 0.618, which is far from optimal scale economy.

• International Area Studies Review
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• v.16 no.3
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• pp.119-134
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• 2012

This paper examines the shift to service economy in the developed countries including Korea and analyzes whether Baumol's cost disease hypothesis could explain the labor productivity growth in the developed countries even though the share of service industry is rising rapidly. We have found the following results: First, the shift to service economy is widely observed in the developed countries. Second, the productivity gap between manufacturing and service industry is widening as a result of stagnant productivity growth in service industry. Third, however, the productivity in the whole economy is still growing because of the large productivity differences among the sub-industries in service industry. Fourth, we have found that the productivities of some service industries, such as finance, communication, business service, etc., are almost same or larger than the productivity of manufacturing industry. From this fact it is likely that the productivity of the whole economy could grow in spite of the stagnant productivity growth in service industry.

• KDI Journal of Economic Policy
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• v.43 no.1
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• pp.53-80
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• 2021

The main objective of this study is to determine whether there have been TFP increases in the Korean manufacturing sector due to trade liberalization since the 1990s. Based on the methodology proposed by Pavcnik (2002), which focuses on the channel through which trade liberalization measures enhance overall industrial productivity by triggering the exit of low-productivity firms, this study tests the following two hypotheses: first, the TFP increase in the Korean tradable industry is not higher than that in the non-tradable industry, and second, plants with lower TFP levels did not exit from the tradable industry. Through the rejection of these two hypotheses, it is possible to infer indirectly the effect of trade liberalization on firm productivity rates in Korea since the 1990s. First, this analysis reveals that since the 1990s, the TFP of the tradable sector compared to the non-tradable sector presented a statistically meaningful increase only in the 2000s, when China joined the WTO and trade increased sharply between Korea and China. Secondly, TFP growth in the tradable sector was positively affected by exits, as it was plants with lower TFP levels that ceased to exist.

• Information Systems Review
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• v.24 no.4
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• pp.41-54
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• 2022

Despite the recent rapid advancement of science and technology, we have been experiencing the decline in productivity since the 2000s. This study aims to investigate the decline at both industry and firm levels, by looking at the emergence and growth of large firms such as Amazon, Alphabet, and Apple and M&A trends. Following the results of previous studies, our results show that productivity at industry level has decreased since the 2000s. Particularly, in the period after 2011, the deterioration of allocative efficiency due to the large firms and the decline in the growth rate of surviving firms in the industry with low ratio of large firms contributed to the productivity decline. On the other hand, our analysis at firm level demonstrates that the productivity of firms that acquired IT firms improved over the entire period. While M&As have a positive impact on productivity, M&As with a demand-side motive such as market penetration and expansion of channels have a relatively larger impact than the ones for production or operation efficiency. Our results also suggest that the higher the proportion of large firms in a specific industry, the lower the productivity of individual firms in the same industry. Overall, given that the industry's structural changes for digital transformation tends to strengthen the growth of large firms, our findings have significant implications by empirically identifying the relationships of the emergence of large firms, the acquisition of IT/Non-IT firms, and motivations for M&As to firm/industry productivity.

• International Commerce and Information Review
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• v.14 no.2
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• pp.271-293
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• 2012

As service industry became more important, many of studies have been done on the role of service. Such studies has been researched focusing on the relationship between the service intensity in the economy and a country's productivity. Baumal(1967) suggested that service growth in economy would bring about decrease in productivity. However, the economy of developed countries encounter with the productivity growth as their economy grows, which phenomenon called Baumol's paradox. Oulton (1999, 2001) find out the reason of Baumol's paradox in a forward and backward chain effects. So, this paper is aimed at verifying the theory of Oulton (1999, 2001) for 13 OECD countries using panel data analysis. We find out that the intermediate knowledge-intensive service inputs cause a multifactor productivity growth.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.150-153
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• 2015

The construction industry is an integral part of any nation's economy, whether measured by dollar volume or workforce size. In spite of its strong influence, there has been very little specifically aimed at evaluating the current industry performance. This research investigates the macroeconomic performance of the construction industry by accounting for crucial performance affecting factors such as labor productivity and gross margin. A clustering analysis, followed by a series of statistical analyses, yielded a notable finding that labor productivity is the most important factor that affects industry's profitability. The results of the analysis also revealed that the states with the strongest labor productivity show the highest level of profitability in terms of gross margin. This study should be of value to decision-makers when plotting a roadmap for future growth and rendering a strategic business decision.

• Journal of Technology Innovation
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• v.5 no.1
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• pp.15-43
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• 1997

This paper investigates empirically the relationship between various business portfolio properties (particularly technological properties) and chaebol's performance using data on the 50largest chaebols in Korea. In addition to the traditional indexes to measure diversification such as entropy index, we calculated inter-industry technological similarity using R'||'&'||'D expenditure data by industry and 1990 Input-output Table in korea, and obtained chaebol-level technological relatedness and internal transaction proportion from chaebols' business profile, inter-inustry technological similarity and 1990 input-output table. We applied factor analysis on 13 business portfolio property indexes and showed that they could be grouped into 3 dimensions. diversification scope, inter-business relatedness and degree of vertical integration. In this paper, using 50 largest chaebols' financial data (1989-1994), we analyzed empirically the effect of business portfolio properties on ROS(Return On Sales) which is conventional index for firm performance and on TFP(Total Factor Productivity) growth which is a pure measure of firm performance. To utilize the advantage of panel data, FEM(Fixed Effect Model) and REM(Random Effect Model) were used. The empirical result shows that the entropy index as a measurement of inter-business relatedness in not significant but technological relatedness index is significant. OLS estimates on pooled data were considerably different from FEM or REM estimates on panel data. By introducing interaction effect among the three variables for business portfolio properties, we obtained three findings. First, only VI(Vertical integration) has a significant positive correlation with ROS. Second, when using TFP growth as an dependent variable, both TR(Technological Relatedness) and VI are significant and positively related to the dependent variable. Third, the interaction term between TR and VI is significant and negatively affects TFP growth, meaning that TR and VI are substitutes. These results suggest strategic directions on restructuring business portfolio. As VI is increased, chaebols will get more profit. A higher level of either TR or VI will increase TFP growth rate, but increase in both TR and VI will have a negative effect on TFP growth. To summarize, certain business portfolio properties such as VI and TR can be considered "resources" themselves since they can affect profit rate and productivity growth. VI and TR have a synergy effect of change in profit rate and productivity growth. VI increases ROS and productivity growth, while TR increases productivity growth representing a technological synergy effect.t.

• Korean Chemical Engineering Research
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• v.54 no.6
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• pp.775-780
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• 2016

Recently, photovoltaic industry needs a new design of Czochralski (Cz) process for higher productivity with reasonable energy consumption as well as solar cell's efficiency. If the process uses the large size reactor for increasing productivity, it is possible to produce a 12-inch, rather than the 8-inch. Also the continuous czochralski process method can be maximized to increase productivity. In this study, it was designed to improve the yield value of ingot with optimal condition which reduce consumption of electrical power. It has increased the productivity of the 12-inch ingot process condition by using CFD simulation. I have found optimal growth rate, by comparing each growth rate the interface shape, Temperature gradient, power consumption. As a result, the optimal process parameters of the growth furnace has been derived to improve for the productivity and to reduce energy. This study will contribute to the improvement of the productivity in the solar cell industry.

• International Area Studies Review
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• v.12 no.2
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• pp.99-123
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• 2008

In this paper, technology gap between Korea's manufacturing industries compared to technology frontier countries was estimated in order to take into account Korea's status as a technology follower country. Then by using this measure the role of technology gap was investigated in explaining total factor productivity growth of the Korean manufacturing at industry level. The main empirical findings are as follows: First, the conventional factors that were emphasized in the previous literature such as R&D intensity, trade openness and human capital play important role in explaining the growth rate of Korea's total factor productivity. Second, the larger the technology gap between Korea and technology leader country (and the faster the technology growth rate in the leader country), the higher the growth rate of total factor productivity in Korea as well. Third when the technology gap is large, the most efficient way of absorbing higher technology from frontier country seems to be the international trade channel rather than R&D or human capital accumulation.