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Technological Progress versus Efficiency Gain in Manufacturing Sectors
Author(s) -
Lee JeongDong,
Kim TaiYoo,
Heo Eunnyeong
Publication year - 1998
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/1467-9361.00041
Subject(s) - technological change , productivity , economics , index (typography) , technical change , malmquist index , nonparametric statistics , total factor productivity , econometrics , manufacturing sector , manufacturing , industrial organization , macroeconomics , business , marketing , world wide web , computer science
This study decomposes the nonparametric Malmquist productivity index for 36 Korean manufacturing sectors into two components: technological change and technical efficiency change. The empirical results show that while each sector displays quite different growth patterns, productivity growth is dominated by technological change. Technological change is found to have a negative correlation with efficiency change. Secondary regression performed in this study identifies the relationship between productivity growth measures and several key policy variables, such as effective protection rate, market concentration, and so forth. The productivity estimates are compared with those of the conventional Törnqvist productivity index.