COMPARATIVE PRODUCTIVITY OF KOREAN MANUFACTURING, 1967-1987

This paper compares productivity levels in South Korean manufacturing with those in the USA, for 13 manufacturing branches. The comparison i s based on specific industry of origin purchasing power parities. Valu e added per hour worked in Korean manufacturing rose from only 4.5 per cent of the US level in 1967 to more than 18 percent in 1987. Total fa ctor productivity rose from only 9 percent in 1967 to 26 percent of th e US level in 1987. At a more detailed level, especially the leather, metals and machinery industries have reached high productivity levels, some of which approach levels in European manufacturing. The consider able labour productivity gap between Korea and the United States can p artly be explained by capital intensity, structural effects, size effe cts and levels of education.