Chaebols and firm dynamics in Korea

Sergei Guriev, Philippe Aghion and Kangchul Jo

No 13825, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study firm dynamics in Korea before and after the 1997-98 Asian crisis and pro-competitive reforms that reduced the dominance of chaebols. We find that in industries that were dominated by chaebols before the crisis, labor productivity and TFP of non-chaebol firms increased markedly after the reforms (relative to other industries). Furthermore, entry of non-chaebol firms increased significantly in all industries after the reform. Finally, after the crisis, the non-chaebol firms also significantly increased their patenting activity (relative to non-chaebol firms). These results are in line with a neo-Schumpeterian view of transition from a growth model based on investment in existing technologies to an innovation-based model.

Keywords: Schumpeterian growth; Chaebols; Asian crisis (search for similar items in EconPapers)
JEL-codes: L25 O43 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-bec, nep-ino, nep-sea and nep-tid
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Related works:
Journal Article: Chaebols and firm dynamics in Korea (2021)
Working Paper: Chaebols and Firm Dynamics in Korea (2021)
Working Paper: Chaebols and Firm Dynamics in Korea (2021)
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