 The Productivity Dispersion of the Korean Manufacturing Industry and Macroeconomic Allocation Efficiency MeasuresJong Il Kim and Dong Keun Kang KDI Journal of Economic Policy, 2015, vol. 37, issue 3, 31-53 Abstract: According to the macroeconomic allocation efficiency measure, particularly based on the methodology of Hsieh and Klenow (2009), Korea's allocation efficiency in the manufacturing industry deteriorated in the 2000s compared to that in the 1990s. This study compares the potential TFP gain when resource allocation is removed, an indicator of allocation inefficiency according to Hsieh and Klenow (2009), and the productivity dispersion in the Korean manufacturing industry. It finds that the TFP gain may be better explained by TFP dispersions rather than proxies related to factors of distortion. The findings imply that we should investigate the sources of TFP dispersion rather than the sources of distortion to explain increases in the TFP gain (or TFP loss), which is considered as allocation inefficiency in the literature. Keywords: Misallocation; Total Factor Productivity (TFP); Productivity Dispersion (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:zbw:kdijep:v:37:y:2015:i:3:p:31-53 DOI: 10.23895/kdijep.2015.37.3.31 Access Statistics for this article KDI Journal of Economic Policy is currently edited by Dongseok Kim More articles in KDI Journal of Economic Policy from Korea Development Institute (KDI) Contact information at EDIRC. |
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