Effect of Regulation on Labor Productivity: Empirical Analysis Using a Panel of Korean Industries (in Korean)

Dongyeol Lee, Jong Han Lee () and Jong Il Choe ()
Additional contact information
Jong Han Lee: Korea Institute of Public Administration
Jong Il Choe: Department of Economics, Chosun University

No 2015-9, Working Papers from Economic Research Institute, Bank of Korea

Abstract: We measure a regulatory stringency index across Korean industries and analyze the effects of regulation on labor productivity through the test and estimation of panel cointegration. Panel cointegration test shows that there exists a statistically significant cointegration among labor productivity, per capita physical capital stock, per capita R&D capital stock, and regulatory stringency index. Furthermore, the estimation of panel cointegration vector shows that, when the regulatory stringency index is classified by the characteristics of regulation (i.e., economic, social, and administrative), the economic regulatory stringency has significantly negative impacts on labor productivity while the social regulatory stringency does not affect productivity significantly. The empirical evidence implies that alleviating economic regulation rather than social regulation is more likely to be effective in enhancing labor productivity in Korea.

Keywords: Regulatory stringency index; Labor productivity; Effect of regulation; Panel cointegration test; Panel cointegration vector (search for similar items in EconPapers)
JEL-codes: K23 L51 O47 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2015-04-07
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bok.or.kr/ucms/cmmn/file/fileDown.do?m ... 00000115477&fileSn=1 Working Paper, 2015 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bok:wpaper:1509

Access Statistics for this paper

More papers in Working Papers from Economic Research Institute, Bank of Korea Contact information at EDIRC.
Bibliographic data for series maintained by Economic Research Institute ().