Productivity, Output, and Failure: A Comparison of Taiwanese and Korean Manufacturers

26 Pages Posted: 26 Nov 2003

See all articles by Bee Yan Aw

Bee Yan Aw

Pennsylvania State University

Sukkyun Chung

Ministry of Finance and Economy, Korea

Mark J. Roberts

Pennsylvania State University - College of the Liberal Arts - Department of Economics; National Bureau of Economic Research (NBER)

Abstract

We use micro panel data for producers in seven two-digit manufacturing industries in South Korea and Taiwan and identify a number of systematic differences in industry structure between the countries. Our empirical findings indicate Taiwanese industries are characterised by less concentrated market structure, more producer turnover, smaller within-industry productivity dispersion across producers, a smaller percentage of plants operating at low productivity levels, and smaller productivity differentials between surviving and failing producers. These patterns are consistent with strong competitive pressures in Taiwan that lead to market selection based on productivity differences. The patterns in Korea are consistent with the presence of some impediments to exit or entry that insulate inefficient producers from market pressures.

Suggested Citation

Roberts, Bee Yan and Chung, Sukkyun and Roberts, Mark J., Productivity, Output, and Failure: A Comparison of Taiwanese and Korean Manufacturers. Economic Journal, Vol. 113, pp. F485-F510, November 2003. Available at SSRN: https://ssrn.com/abstract=465544

Bee Yan Roberts (Contact Author)

Pennsylvania State University ( email )

501 Kern Building
University Park, PA 16802-3306
United States
814-863-1996 (Phone)
814-863-4775 (Fax)

HOME PAGE: http://econ.la.psu.edu/Biography_Pages/VITA.0901.pdf

Sukkyun Chung

Ministry of Finance and Economy, Korea ( email )

Kwachon-Shi
Kyonggi-Do 427-760
Republic of Korea

Mark J. Roberts

Pennsylvania State University - College of the Liberal Arts - Department of Economics ( email )

513 Kern Graduate Building
University Park, PA 16802-3306
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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