Productivity and Employment in a Developing Country: Some Evidence from Korea
Hyunjoon Lim and
Donghyun Park ()
World Development, 2010, vol. 38, issue 4, 514-522
Summary The vast majority of the sizable empirical literature which examines the relationship between productivity and employment examines data from developed countries. In this paper, we contribute to the limited empirical literature on the productivity-employment relationship in developing countries by applying structural vector autoregression (VAR) models on Korean data. We find that productivity-enhancing technology shocks reduce hours worked in the short run. Such evidence is qualitatively similar to findings from developed countries, and more consistent with sticky price models than the real business cycle theory. Although productivity-enhancing technology shocks are an important source of economic growth in Korea, they may have exerted a negative impact on employment.
Keywords: technology; shocks; productivity; employment; sticky; prices; Keynesian; real; business; cycle; Korea (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:38:y:2010:i:4:p:514-522
Access Statistics for this article
World Development is currently edited by O. T. Coomes
More articles in World Development from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().