The Effects of Strategic Goods Control on Productivity: The Case of Korea

Min Hye Moon () and Yong Joon Jang ()
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Min Hye Moon: Kyung Hee University
Yong Joon Jang: Kyung Hee University

East Asian Economic Review, 2023, vol. 27, issue 2, 89-114

Abstract: This paper empirically examines how controlling strategic goods affects productivity by focusing on Korean industries from 2015 to 2019. We hypothesize that strategic goods control positively affects productivity because it promotes international trade by making up for market failures, building up national credibility, and stabilizing market environment; in turn, international trade contributes to productivity growth. The regression results are congruent with our hypothesis. The effects of strategic goods control on productivity were positive and statistically significant in general. These positive effects were more prominent in the group of industries that include strategic goods and, thus, are technologically intensive. The results also support that international trade is a key medium for the effects of strategic goods control on productivity. Consequently, our empirical results support government policy on strategic goods control, ensuring that strategic goods control can contribute to economic growth by reducing diplomatic friction and stabilizing the global market.

Keywords: Strategic Goods Control; Total Factor Productivity (search for similar items in EconPapers)
JEL-codes: F13 F14 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0419

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