Dynamic Determinants of Korean Productivity Changes: with Emphasis on Trade
This study investigates the relationship between trade and economic growth in Korea during the period 1980~2003. The empirical results suggest the existence of Granger causality running from imports to total factor productivity (TFP) growth, and the relatively weak causal relationship between export...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Korea Institute for International Economic Policy
2005-12-01
|
| Series: | East Asian Economic Review |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.11644/KIEP.JEAI.2005.9.2.143 |
| _version_ | 1818791903823396864 |
|---|---|
| author | Sangho Kim Hyunjoon Lim |
| author_facet | Sangho Kim Hyunjoon Lim |
| author_sort | Sangho Kim |
| collection | DOAJ |
| description | This study investigates the relationship between trade and economic growth in Korea during the period 1980~2003. The empirical results suggest the existence of Granger causality running from imports to total factor productivity (TFP) growth, and the relatively weak causal relationship between exports and TFP. In light of this causal relationship between imports and TFP growth, TFP growth is regressed on various trade variables, along with R&D investments and government size. The results indicate that imports have significant positive effects on TFP but that exports do not. The results also indicate that the salutary impact of imports on TFP growth stems not only from competitive pressure and new knowledge acquired from foreign rivals in the context of increased imports of final goods but also from technological transfers embodied by imports from developed countries. Most of the empirical results still hold when TFP growth is replaced with GDP growth. |
| first_indexed | 2024-12-18T15:18:45Z |
| format | Article |
| id | doaj.art-a6ce6383a5374ea1bafbdd5c72d2f246 |
| institution | Directory Open Access Journal |
| issn | 2508-1640 2508-1667 |
| language | English |
| last_indexed | 2024-12-18T15:18:45Z |
| publishDate | 2005-12-01 |
| publisher | Korea Institute for International Economic Policy |
| record_format | Article |
| series | East Asian Economic Review |
| spelling | doaj.art-a6ce6383a5374ea1bafbdd5c72d2f2462022-12-21T21:03:28ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16672005-12-0192345http://dx.doi.org/10.11644/KIEP.JEAI.2005.9.2.143Dynamic Determinants of Korean Productivity Changes: with Emphasis on TradeSangho Kim 0Hyunjoon Lim 1Honam UniversityBank of KoreaThis study investigates the relationship between trade and economic growth in Korea during the period 1980~2003. The empirical results suggest the existence of Granger causality running from imports to total factor productivity (TFP) growth, and the relatively weak causal relationship between exports and TFP. In light of this causal relationship between imports and TFP growth, TFP growth is regressed on various trade variables, along with R&D investments and government size. The results indicate that imports have significant positive effects on TFP but that exports do not. The results also indicate that the salutary impact of imports on TFP growth stems not only from competitive pressure and new knowledge acquired from foreign rivals in the context of increased imports of final goods but also from technological transfers embodied by imports from developed countries. Most of the empirical results still hold when TFP growth is replaced with GDP growth.http://dx.doi.org/10.11644/KIEP.JEAI.2005.9.2.143ImportsExportsProductivityEconomic Growth |
| spellingShingle | Sangho Kim Hyunjoon Lim Dynamic Determinants of Korean Productivity Changes: with Emphasis on Trade East Asian Economic Review Imports Exports Productivity Economic Growth |
| title | Dynamic Determinants of Korean Productivity Changes: with Emphasis on Trade |
| title_full | Dynamic Determinants of Korean Productivity Changes: with Emphasis on Trade |
| title_fullStr | Dynamic Determinants of Korean Productivity Changes: with Emphasis on Trade |
| title_full_unstemmed | Dynamic Determinants of Korean Productivity Changes: with Emphasis on Trade |
| title_short | Dynamic Determinants of Korean Productivity Changes: with Emphasis on Trade |
| title_sort | dynamic determinants of korean productivity changes with emphasis on trade |
| topic | Imports Exports Productivity Economic Growth |
| url | http://dx.doi.org/10.11644/KIEP.JEAI.2005.9.2.143 |
| work_keys_str_mv | AT sanghokim dynamicdeterminantsofkoreanproductivitychangeswithemphasisontrade AT hyunjoonlim dynamicdeterminantsofkoreanproductivitychangeswithemphasisontrade |