Intangible Investment and Changing Sources of Growth in Korea

27 Pages Posted: 22 Feb 2016

See all articles by Hyunbae Chun

Hyunbae Chun

Sogang University - Department of Economics

M. Ishaq Nadiri

New York University (NYU) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: March 2016

Abstract

We examine how intangible investments change the sources of growth in the Korean economy. After constructing a novel industry‐level data set on intangibles, we estimate the contribution of intangible‐intensive industries and other industries to aggregate productivity growth in 1981–2008. The contribution of intangible‐intensive industries to aggregate labour productivity growth has significantly increased, whereas that of other industries has substantially decreased. The increased contribution of intangible‐intensive industries is mainly associated with total factor productivity growth rather than with input growth. This suggests that innovations related to intangible investments in these industries might become a new key source of productivity growth in Korea.

JEL Classification: O47, E22, O14, O53

Suggested Citation

Chun, Hyunbae and Nadiri, M. Ishaq, Intangible Investment and Changing Sources of Growth in Korea (March 2016). Japanese Economic Review, Vol. 67, Issue 1, pp. 50-76, 2016. Available at SSRN: https://ssrn.com/abstract=2735594 or http://dx.doi.org/10.1111/jere.12079

Hyunbae Chun (Contact Author)

Sogang University - Department of Economics ( email )

Seoul, 121-742
Korea, Republic of (South Korea)
+82-2-705-8515 (Phone)
+82-2-704-8599 (Fax)

HOME PAGE: http://hompi.sogang.ac.kr/hchun/

M. Ishaq Nadiri

New York University (NYU) - Department of Economics ( email )

269 Mercer Street, 7th Floor
New York, NY 10011
United States
212-998-8968 (Phone)
212-995-4013 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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