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Productivity growth in Korea: efficiency improvement or technical progress?

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This paper shows that the productivity gains in Korean manufacturing are mostly from efficiency improvement rather than from technical progress. These findings are contrary to those of previous sectoral studies of Korean and Taiwanese manufacturing, but are consistent with those of cross-country studies. Regression results show that both domestic and foreign R&D played an important role in increasing efficiency and technical progress in Korean manufacturing. However, domestic R&D has more effect on technical progress, while foreign R&D has played a relatively stronger role in efficiency improvement.
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Document Type: Research Article

Affiliations: 1: Department of Economics, Chonnam National University, Kwangju 500-757, Korea 2: Department of Economics, Soongsil University, Seoul 156-743, Korea

Publication date: 10 May 2006

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