Explaining regional productivity difference by export variety: evidence from South Korea

Kichun Kang

Applied Economics, 2024, vol. 56, issue 47, 5605-5617

Abstract: Regional productivity differences and their determinants have long been key issues for regional researchers and policymakers. This study considers regional export variety as a factor determining regional productivity differences. Using a panel dataset covering 16 South Korean regions from 2000 to 2015, we find that export variety in South Korea accounts for 28.1% of cross-region productivity differences and 47.6% of within-region productivity growth. Export varieties are important in determining the cross-region differences and time-series variations in productivity. This study highlights the importance of export variety as a mechanism by which trade affects regional productivity.

Date: 2024
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DOI: 10.1080/00036846.2023.2257040

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