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Total Factor Productivity in Korean Manufacturing Industries

Inha Oh (), Jeong-Dong Lee () and Almas Heshmati ()

Global Economic Review, 2008, vol. 37, issue 1, 23-50

Abstract: In this study, parametric and non-parametric methods are employed to measure the total factor productivity (TFP) growth in the Korean manufacturing industry from 1993 to 2003. The analysis period contains both periods before and after the Asian financial crisis. The TFP growth rate is decomposed into different components. Also different elasticities are reported. By classifying the results by period and classifying a number of time invariant firm characteristics, such as sector, size, and location of firms, we observe systematic heterogeneity for each characteristic. We discuss the underlying causal factors. The results from a non-parametric approach are also compared with those of a parametric approach.

Keywords: Time trend; general index; production function; total factor productivity; chained multilateral index (search for similar items in EconPapers)
Date: 2008
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