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Urbanisation and Regional Productivity in Korean Manufacturing

Author

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  • Yung Joon Lee

    (Department of Economics, Pusan National University, Jangjon-dong San 30 Kumjung-ku, Pusan 609-735, Korea, yuregjlee@hyowore pusan.ac.kr)

  • Hyoungsoo Zang

    (Korea Institute for International Economic Policy, 300-4 Yomgok-dong, Socho-ku, Seoul 137-800, Korea, hzang@kiep.kiep.go.kr.)

Abstract

As the first study for Korea, we estimate the effects of urbanisation and localisation economies on the productivity of 19 Korean manufacturing industries in 1983, 1988 and 1993. Based on the observation that material inputs contributed about 60 per cent of productivity growth in Korea, we consider gross output productivity, which is an innovation that distinguishes our study from previous ones. We find that localisation economies have been dominant features of Korean manufacturing industries, whereas Korean manufacturing industries did not benefit much from locating in large cities. More interestingly, there are some indications of quadratic relations between city size and urbanisation economies.

Suggested Citation

  • Yung Joon Lee & Hyoungsoo Zang, 1998. "Urbanisation and Regional Productivity in Korean Manufacturing," Urban Studies, Urban Studies Journal Limited, vol. 35(11), pages 2085-2099, November.
    • Handle: RePEc:sae:urbstu:v:35:y:1998:i:11:p:2085-2099
    DOI: 10.1080/0042098984015
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    References listed on IDEAS

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    2. Henderson, Vernon & Lee, Todd & Lee, Yung Joon, 2001. "Scale Externalities in Korea," Journal of Urban Economics, Elsevier, vol. 49(3), pages 479-504, May.
    3. Gustavo A. García, 2019. "Agglomeration economies in the presence of an informal sector: the Colombian case," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 355-388.
    4. Tie-Ying Liu & Chi Wei Su & Xu-Zhao Jiang, 2015. "Is economic growth improving urbanisation? A cross-regional study of China," Urban Studies, Urban Studies Journal Limited, vol. 52(10), pages 1883-1898, August.
    5. Azari, Mehdi & Kim, Hakkon & Kim, Jun Yeup & Ryu, Doojin, 2016. "The effect of agglomeration on the productivity of urban manufacturing sectors in a leading emerging economy," Economic Systems, Elsevier, vol. 40(3), pages 422-432.
    6. Can-fei He & Sheng-jun Zhu, 2009. "Industrial agglomeration and labour productivity in transition: an empirical study of Chinese manufacturing industries," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 103-115.
    7. Jennifer Day & Peter Ellis, 2013. "Growth in Indonesia's manufacturing sectors: Urban and localization contributions," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(3), pages 343-368, August.
    8. Henry G. Overman & Anthony J. Venables, 2010. "Evolving City Systems," WIDER Working Paper Series wp-2010-026, World Institute for Development Economic Research (UNU-WIDER).
    9. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Overman, Henry G. & Venables, Anthnony J., 2010. "Evolving City Systems," WIDER Working Paper Series 026, World Institute for Development Economic Research (UNU-WIDER).

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