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Technological Progress, Structural Change and Productivity Growth in Manufacturing Sector of South Korea

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  • Singh, Lakhwinder

Abstract

This paper focuses on the impact of technology, structural change on the aggregate productivity growth in manufacturing sector of South Korea, using the eight firm size classes over the period 1970-2000. The conventional shift-share analysis is used to measure the impact of shift of both labor and capital inputs. The results show that structural change on average has been conducive to productivity growth during the 1970s and this pattern reversed afterwards. Small and medium industries were more dynamic in terms of reallocation of resources, however, their positive impact out-weighed because of the dominance of large sized firms in the manufacturing sector. Deliberate state policy favoring large sized firms has impeded restructuring process facilitated by technical progress may have a penalty in terms of forgone growth.

Suggested Citation

  • Singh, Lakhwinder, 2004. "Technological Progress, Structural Change and Productivity Growth in Manufacturing Sector of South Korea," MPRA Paper 99, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:99
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    References listed on IDEAS

    as
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    10. Benton F. Massell, 1961. "A Disaggregated View of Technical Change," Journal of Political Economy, University of Chicago Press, vol. 69(6), pages 547-547.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Gefu Liang & Dajia Yu & Lifei Ke, 2021. "An Empirical Study on Dynamic Evolution of Industrial Structure and Green Economic Growth—Based on Data from China’s Underdeveloped Areas," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    3. Yeon, Jung-In & Pyka, Andreas & Kim, Tai-Yoo, 2016. "Structural shift and increasing variety in Korea, 1960-2010: Empirical evidence of the economic development model by the creation of new sectors," Hohenheim Discussion Papers in Business, Economics and Social Sciences 13-2016, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    4. Singh, Lakhwinder & Shergill, Baldev Singh, 2009. "Technological Capability, Employment Growth and Industrial Development: A Quantitative Anatomy of Indian Scenario," MPRA Paper 19059, University Library of Munich, Germany.
    5. Linxiu Zhang & Hongmei Yi & Renfu Luo & Changfang Liu & Scott Rozelle, 2013. "The human capital roots of the middle income trap: the case of China," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 151-162, November.
    6. Aradhna Aggarwal & Nagesh Kumar, 2012. "Structural Change, Industrialization and Poverty Reduction: The Case of India," Development Papers 1206, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.
    7. Qin, Duo, 2006. "Is China's growing service sector leading to cost disease?," Structural Change and Economic Dynamics, Elsevier, vol. 17(3), pages 267-287, September.
    8. Singh, Lakhwinder & Jain, Varinder, 2006. "Unorganised Manufacturing Industry in the Era of Globalization: A Study of Punjab," MPRA Paper 197, University Library of Munich, Germany.
    9. Xiaodong Li & Li Huang & Ai Ren & Qi Li & Xuejin Zeng, 2022. "The Effect of Production Structure Roundaboutness on the Innovation Capability of High-Tech Enterprises—The Mediating Role of Technology Absorption Path," Sustainability, MDPI, vol. 14(9), pages 1-14, April.
    10. Kunming Li & Liting Fang & Tao Lu, 2019. "Bayesian panel smooth transition model with spatial correlation," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-12, March.
    11. Li, Huanjie & Zhang, Yuan & Li, Yan, 2024. "The impact of the digital economy on the total factor productivity of manufacturing firms: Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 207(C).

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    More about this item

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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