Government Interventions and Productivity Growth in Korean Manufacturingindustries

40 Pages Posted: 2 May 2011

Date Written: March 1995

Abstract

This paper investigates the impact of government industrial policy and trade protection of the manufacturing sector in Korea. Empirical results are provided, using 4-period panel data for the years 1963-83, for 38 Korean industries in which trade protection reduced growth rates of labor productivity and total factor productivity, while industrial policies, such as tax incentives and subsidized credit, were not correlated with total factor productivity growth in the promoted sectors. The evidence, thus, implies that less government intervention in trade is linked to higher productivity growth.

Suggested Citation

Lee, Jong-Wha, Government Interventions and Productivity Growth in Korean Manufacturingindustries (March 1995). NBER Working Paper No. w5060. Available at SSRN: https://ssrn.com/abstract=1827434

Jong-Wha Lee (Contact Author)

Korea University ( email )

Anam-dong, Sungbuk-Ku
Dept. of Economics
Seoul, 136-701
82-2-3290-2216 (Phone)
82-2-928-4948 (Fax)

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