Government Interventions and Productivity Growth

Jong-Wha Lee

Journal of Economic Growth, 1996, vol. 1, issue 3, 414 pages

Abstract: This article investigates the impact of government industrial policy and trade protection of the manufacturing sector in Korea. Empirical results are provided, using four-period panel data for the years 1963 through 1983, for productivity, while industrial policies, such as tax incentives and subsidized credit, were not correlated with total factor productivity growth in the promoted sectors. The evidence thus implies that less government intervention in trade is linked to higher productivity growth. Copyright 1996 by Kluwer Academic Publishers

Date: 1996
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