A decomposition of total factor productivity growth in Korean manufacturing industries: A stochastic frontier approach

Authors
Citation
S. Kim et G. Han, A decomposition of total factor productivity growth in Korean manufacturing industries: A stochastic frontier approach, J PROD ANAL, 16(3), 2001, pp. 269-281
Citations number
20
Categorie Soggetti
Economics
Journal title
JOURNAL OF PRODUCTIVITY ANALYSIS
ISSN journal
0895562X → ACNP
Volume
16
Issue
3
Year of publication
2001
Pages
269 - 281
Database
ISI
SICI code
0895-562X(2001)16:3<269:ADOTFP>2.0.ZU;2-V
Abstract
This paper applies a stochastic frontier production model to Korean manufac turing industries, to decompose the sources of total factor productivity (T FP) growth into technical progress, changes in technical efficiency, change s in allocative efficiency, and scale effects. Empirical results based on d ata from 1980-1994 show that productivity growth was driven mainly by techn ical progress, that changes in technical efficiency had a significant posit ive effect, and that allocative efficiency had a negative effect. This stud y suggests that specific guidelines are required to promote productivity in each industry, and provides additional insight into understanding the rece nt debate on TFP growth in Korean manufacturing.