Participation in the Kaesong Industrial Complex and its impact on productivity: South Korean textile firms’ experiences

Sungtaek Cho, Do Won Kwak () and Hongshik Lee

Japan and the World Economy, 2020, vol. 53, issue C

Abstract: This paper examines the effects of participating in the KIC on firms’ productivity using firm-level data from 1998 to 2012, focusing on the textile sector. To do this, we implemented PSM estimations employing the radius matching method with 0.01 caliper and 10nearest-neighbor matchings with replacement. We found 100 matched firms in control groups(domestic firms) that corresponded to each of the 10 treated firms.

Keywords: Difference-in-differences; Event study; Propensity matching score; Kaesong Industrial Complex (KIC); North Korea (search for similar items in EconPapers)
JEL-codes: D22 F14 F23 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:53:y:2020:i:c:s0922142519300623

DOI: 10.1016/j.japwor.2019.100995

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