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Measuring the evolution of Korea’s material living standards 1980–2012

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  • Taehyoung Cho
  • Junghoon Kim
  • Paul Schreyer

Abstract

Based on a production-theoretic framework, we measure the effects of real output prices, primary inputs, and multi-factor productivity growth on Korea’s real income growth over the past 30 years. The empirical analysis is based on a new dataset for Korea with detailed information on labor and capital inputs, including series on land and inventories assets. We find that while over the entire period, capital and labor inputs explain the bulk of Korean real income growth, productivity growth has come to play an increasingly important role since the mid-1990s, providing some evidence of a transition from ‘input-led’ to ‘productivity-led’ growth. Terms of trade and other price effects were modest over the longer period, but had significant real income effects over sub-periods. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Taehyoung Cho & Junghoon Kim & Paul Schreyer, 2015. "Measuring the evolution of Korea’s material living standards 1980–2012," Journal of Productivity Analysis, Springer, vol. 44(2), pages 157-173, October.
    • Handle: RePEc:kap:jproda:v:44:y:2015:i:2:p:157-173
    DOI: 10.1007/s11123-014-0404-0
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    References listed on IDEAS

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    More about this item

    Keywords

    Real income; Productivity; Terms of trade; Growth accounting Korea; C43; C82; D24; D31; F14; I3;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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