IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v21y2016i4p628-650.html
   My bibliography  Save this article

Firms’ strategies, vertical integration, and productivity growth in Korea's core growth-leading industries

Author

Listed:
  • Mi Kyung Pai

Abstract

This study investigates the impact of firms’ strategies on the productivity growth of vertically integrated with capital share (VI) firms, non-VI (NVI) firms, and firms shifting schemes. A Cobb-Douglas stochastic frontier production model applies to a firm-level panel data set of Korea's automobile, electronics, and general machinery industries from 2006 to 2011. Distinct from VI automobile firms, VI electronics firms achieved the highest total factor productivity growth despite the agency dilemma. Therefore, policymakers need not ascribe undue attention to fair trade and competition policies for VI electronics firms. VI electronics firms achieved the largest impact from incentive schemes, and VI firms showed larger impact than did NVI firms from patents and intellectual property rights. Electronics firms and general machinery firms retaining a VI structure showed larger impacts from strategic technology partnerships than those retaining an NVI structure, and thus should share the growth experienced from technology upgrades with their NVI counterparts.

Suggested Citation

  • Mi Kyung Pai, 2016. "Firms’ strategies, vertical integration, and productivity growth in Korea's core growth-leading industries," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(4), pages 628-650, October.
    • Handle: RePEc:taf:rjapxx:v:21:y:2016:i:4:p:628-650
    DOI: 10.1080/13547860.2016.1201956
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547860.2016.1201956
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13547860.2016.1201956?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Daron Acemoglu & Philippe Aghion & Rachel Griffith & Fabrizio Zilibotti, 2010. "Vertical Integration and Technology: Theory and Evidence," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 989-1033, September.
    3. Mi Kyung Pai, 2016. "The Technical Progress and Resilience in Productivity Growth of Korea's Growth-Leading Industries," Asian Economic Papers, MIT Press, vol. 15(2), pages 167-191, Summer.
    4. Kim, Soo-Il & Gopinath, Munisamy & Kim, Hanho, 2009. "High productivity before or after exports? An empirical analysis of Korean manufacturing firms," Journal of Asian Economics, Elsevier, vol. 20(4), pages 410-418, September.
    5. Aw, Bee Yan & Chung, Sukkyun & Roberts, Mark J, 2000. "Productivity and Turnover in the Export Market: Micro-level Evidence from the Republic of Korea and Taiwan (China)," The World Bank Economic Review, World Bank, vol. 14(1), pages 65-90, January.
    6. René Belderbos & Vincent Van Roy & Florence Duvivier, 2013. "International and domestic technology transfers and productivity growth: firm level evidence," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(1), pages 1-32, February.
    7. Alven H.S. Lam, 2000. "Republic of China (Taiwan)," American Journal of Economics and Sociology, Wiley Blackwell, vol. 59(5), pages 327-336, November.
    8. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohammad Sharif Karimi & Andrzej Cieslik, 2017. "Foreign Knowledge Spillovers and Total Factor Productivity Growth: Evidence from Four ASEAN Countries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(2), pages 267-299, Spring.
    2. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.
    3. Ricardo A. López, 2005. "Trade and Growth: Reconciling the Macroeconomic and Microeconomic Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 19(4), pages 623-648, September.
    4. Bernard Hoekman & Beata Smarzynska Javorcik, 2006. "Global Integration and Technology Transfer," World Bank Publications - Books, The World Bank Group, number 6962.
    5. Francisco J. Santos-Arteaga & Celia Torrecillas & Madjid Tavana, 2019. "Dynamic effects of learning on the innovative outputs and productivity in Spanish multinational enterprises," The Journal of Technology Transfer, Springer, vol. 44(1), pages 97-131, February.
    6. Elhanan Helpman, 2010. "Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality," NBER Working Papers 15764, National Bureau of Economic Research, Inc.
    7. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.
    8. Mohamed Amara & Khaled Thabet, 2019. "Firm and regional factors of productivity: a multilevel analysis of Tunisian manufacturing," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 25-51, August.
    9. Sandberg, Susanne & Sui, Sui & Baum, Matthias, 2019. "Effects of prior market experiences and firm-specific resources on developed economy SMEs' export exit from emerging markets: Complementary or compensatory?," Journal of Business Research, Elsevier, vol. 98(C), pages 489-502.
    10. Christian Schwarz & Kristian Giesen, 2011. "Trade, Wages, FDI and Productivity," Ruhr Economic Papers 0251, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. Yoshino, Yutaka, 2008. "Domestic constraints, firm characteristics, and geographical diversification of firm-level manufacturing exports in Africa," Policy Research Working Paper Series 4575, The World Bank.
    12. Martin Andersson & Hans Lööf, 2009. "Learning‐by‐Exporting Revisited: The Role of Intensity and Persistence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 893-916, December.
    13. Megha Mukim, 2011. "Trade integration, economic geography and productivity: The Indo-Sri Lanka FTA," ERSA conference papers ersa10p176, European Regional Science Association.
    14. Paul S. Segerstrom & Ignat Stepanok, 2018. "Learning How To Export," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(1), pages 63-92, January.
    15. Beverly Lapham & Hiroyuki Kasahara, 2005. "Import Protection as Export Destruction," 2005 Meeting Papers 528, Society for Economic Dynamics.
    16. Dutt, Pushan & Mihov, Ilian & Van Zandt, Timothy, 2013. "The effect of WTO on the extensive and the intensive margins of trade," Journal of International Economics, Elsevier, vol. 91(2), pages 204-219.
    17. Joel Rodrigue, 2014. "Multinational Production, Exports and Aggregate Productivity," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(2), pages 243-261, April.
    18. Békés, Gábor & Hornok, Cecília & Muraközy, Balázs, 2016. "Globalization and the markups of European firms," Kiel Working Papers 2044, Kiel Institute for the World Economy (IfW Kiel).
    19. Ghazalian, Pascal L., 2010. "Innovation and Export Performance of the Food Processing Sector: Opportunities and Limitations," CAIRN Policy Briefs 273059, Canadian Agricultural Innovation and Regulation Network (CAIRN).
    20. Gregory Corcos & Massimo Del Gatto & Giordano Mion & Gianmarco I.P. Ottaviano, 2012. "Productivity and Firm Selection: Quantifying the ‘New’ Gains from Trade," Economic Journal, Royal Economic Society, vol. 122(561), pages 754-798, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:21:y:2016:i:4:p:628-650. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.