The Effect of Imports and Exports on Total Factor Productivity in Korea

Sangho Kim, Hyunjoon Lim and Donghyun Park

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: We investigate the effect of imports and exports on total factor productivity in Korea during 1980-2003. We find Granger causality from imports to total factor productivity (TFP) growth, but no causality from exports to TFP growth. We then investigate the impact of trade and other variables on TFP growth. According to our results, imports have a significant positive effect on TFP growth but exports do not. In addition, our results indicate that the positive impact of imports arises not only from the competitive pressures associated with the imports of consumer goods but also from technological transfers embodied in imports of capital goods from developed countries.

Pages: 40 pages
Date: 2007-04
New Economics Papers: this item is included in nep-eff and nep-int
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:07022

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