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Explaining regional productivity difference by export variety: evidence from South Korea

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  • Kichun Kang

Abstract

Regional productivity differences and their determinants have long been key issues for regional researchers and policymakers. This study considers regional export variety as a factor determining regional productivity differences. Using a panel dataset covering 16 South Korean regions from 2000 to 2015, we find that export variety in South Korea accounts for 28.1% of cross-region productivity differences and 47.6% of within-region productivity growth. Export varieties are important in determining the cross-region differences and time-series variations in productivity. This study highlights the importance of export variety as a mechanism by which trade affects regional productivity.

Suggested Citation

  • Kichun Kang, 2024. "Explaining regional productivity difference by export variety: evidence from South Korea," Applied Economics, Taylor & Francis Journals, vol. 56(47), pages 5605-5617, October.
    • Handle: RePEc:taf:applec:v:56:y:2024:i:47:p:5605-5617
    DOI: 10.1080/00036846.2023.2257040
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