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Participation in the Kaesong Industrial Complex and its impact on productivity: South Korean textile firms’ experiences

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  • Cho, Sungtaek
  • Kwak, Do Won
  • Lee, Hongshik

Abstract

This paper examines the effects of participating in the KIC on firms’ productivity using firm-level data from 1998 to 2012, focusing on the textile sector. To do this, we implemented PSM estimations employing the radius matching method with 0.01 caliper and 10nearest-neighbor matchings with replacement. We found 100 matched firms in control groups(domestic firms) that corresponded to each of the 10 treated firms.

Suggested Citation

  • Cho, Sungtaek & Kwak, Do Won & Lee, Hongshik, 2020. "Participation in the Kaesong Industrial Complex and its impact on productivity: South Korean textile firms’ experiences," Japan and the World Economy, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:japwor:v:53:y:2020:i:c:s0922142519300623
    DOI: 10.1016/j.japwor.2019.100995
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    More about this item

    Keywords

    Difference-in-differences; Event study; Propensity matching score; Kaesong Industrial Complex (KIC); North Korea;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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