 Technological advances in manufacturing and their effects on sectoral employment in the Korean economyBae-Geun Kim Economic Modelling, 2023, vol. 126, issue C Abstract: This paper studies the short- and long-term effects of rapid technological advances in the manufacturing sector (named manufacturing-specific technology shocks) on sectoral employment in the Korean economy. A study on the Korean economy is fruitful since, during deindustrialization, the country exhibited different trends from those in the United States and United Kingdom in terms of manufacturing’s share of output. Based on empirical analyses and a two-sector small open-economy DSGE model, the paper finds that over the long run, employment moves from manufacturing to services following a manufacturing-specific technology shock. In the short run, however, manufacturing employment rises. Even though the Korean economy is highly export-driven, the short-run rise in manufacturing employment is ultimately driven by an investment boom following technological innovations. Keywords: Deindustrialization; Manufacturing-specific technology shock; Sectoral employment dynamics; Small open-economy DSGE model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:126:y:2023:i:c:s0264999323002456 DOI: 10.1016/j.econmod.2023.106433 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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