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Imports, exports and total factor productivity in Korea

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  • Sangho Kim
  • Hyunjoon Lim
  • Donghyun Park

Abstract

This study investigates the relationship between trade and economic growth in Korea during 1980-2003. We find Granger causality from imports to Total Factor Productivity (TFP) growth, and the absence of any causal relation between exports and TFP. We then, empirically examine the impact of various trade variables on TFP growth. Our results indicate that imports have a significant positive effect on TFP growth, but exports do not. Furthermore, our results suggest that the positive impact of imports stems not only from competitive pressures arising from the imports of consumer goods but also from technological transfers embodied in imports of capital goods and imports from developed countries. Most of our empirical results still hold when we replace TFP growth with Gross Domestic Profit (GDP) growth as the dependent variable.

Suggested Citation

  • Sangho Kim & Hyunjoon Lim & Donghyun Park, 2009. "Imports, exports and total factor productivity in Korea," Applied Economics, Taylor & Francis Journals, vol. 41(14), pages 1819-1834.
    • Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1819-1834
    DOI: 10.1080/00036840601032243
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    References listed on IDEAS

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    1. Yosuke Okada, 2005. "Competition and Productivity in Japanese Manufacturing Industries," NBER Working Papers 11540, National Bureau of Economic Research, Inc.
    2. Laurence Ball & Robert Moffitt, 2001. "Productivity Growth and the Phillips Curve," NBER Working Papers 8421, National Bureau of Economic Research, Inc.
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    5. Robert Z. Lawrence & David E. Weinstein, 1999. "Trade and Growth: Import-Led or Export-Led? Evidence From Japan and Korea," NBER Working Papers 7264, National Bureau of Economic Research, Inc.
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    Cited by:

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    2. Cacciatore, Matteo & Ghironi, Fabio & Lee, Yurim, 2016. "Financial market integration, exchange rate policy, and the dynamics of business and employment in Korea," Journal of the Japanese and International Economies, Elsevier, vol. 42(C), pages 79-99.
    3. José Romero, 2015. "Exports, imports, FDI and GDP in Mexico," Serie documentos de trabajo del Centro de Estudios Económicos 2015-01, El Colegio de México, Centro de Estudios Económicos.
    4. Jai S. Mah, 2017. "Globalization And Economic Growth In Cambodia," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 363-375, June.
    5. Jacint Balaguer & Tatiana Florica & Jordi Ripollés, 2015. "Foreign trade and economic growth in Spain (1900–2012): the role of energy imports," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(3), pages 359-375, December.
    6. Sangho Kim, 2014. "Estimating Productivity Growth In The Korean Economy Without Restrictive Assumptions," Contemporary Economic Policy, Western Economic Association International, vol. 32(2), pages 520-532, April.
    7. Julen Berasaluce & José Romero, 2015. "Exports, imports, FDI and GDP in the Republic of Korea: 1980-2014," Serie documentos de trabajo del Centro de Estudios Económicos 2015-06, El Colegio de México, Centro de Estudios Económicos.
    8. Phu Nguyen-Van & Tuyen Tiet & Quoc Tran-Nam, 2024. "Synergy in environmental compliance, innovation and export on SMEs' growth," Working Papers hal-04441426, HAL.
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    16. Byoungki Kim & Phouphet Kyophilavong & Kenji Nozaki & Teerawat Charoenrat, 2022. "Does the Export-led Growth Hypothesis Hold for Myanmar?," Global Business Review, International Management Institute, vol. 23(1), pages 48-60, February.
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