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Multinational Factoryless Goods Producers and Expansion of Wholesale & Retail Industry in Korea

Author

Listed:
  • Jung Hur

    (Department of Economics, Sogang University, Korea)

  • Jin Young Yoon

    (Department of Economics, Queen’s University, Canada)

Abstract

This paper studies a role of Multinational Factoryless Goods Producers (MFGPs) on the recent expansion of the wholesale and retail industries in Korea. We empirically investigate the impacts of industry-level store entry rate of the MFGPs on labor productivity growth and storeentry and exit probabilities of Non-MFGPs which are the majority of firms in the industries. Our main results are as follows. First, the industry-level store entry rates of MFGPs are positively associated with increases in labor productivity growth of Non-MFGPs. Second, the industry-level store entry rates of MFGPs are positively related to store-entry decision of Non-MFGPs. These findings may imply that the entries of MFGP-stores contribute to the growth and expansion of the wholesale and retail industries as a whole.

Suggested Citation

  • Jung Hur & Jin Young Yoon, 2021. "Multinational Factoryless Goods Producers and Expansion of Wholesale & Retail Industry in Korea," Working Papers 2107, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    • Handle: RePEc:sgo:wpaper:2107
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    Keywords

    Multinational Factoryless Goods Producers; Wholesale and retail industries; Labor Productivity; Store Entry and Exit;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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