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Gauging The Sources Of Growth Of High-Tech And Low-Tech Industries: The Case Of Korean Manufacturing




Literature argues that the source of growth for high-tech industries emanates from technological progress, while that for low-tech industries comes from technical efficiency improvement. Also, some empirical studies have shown that technological progress is often accompanied by deterioration in technical efficiency. The focus in this study is to discuss a methodology and test the above two hypotheses with regard to Korean manufacturing data from 1970 to 1997. The study found that the 2.5 per cent average annual rate of technological progress during this period was the major contributor to total factor productivity (TFP) growth in Korean manufacturing whereas technical efficiency grew by a modest 1.1 per cent per annum. The analysis also showed that technological progress was responsible for TFP growth in both high-tech and low-tech industries and that both technological progress and technical efficiency improvement co-existed in the case of Korean manufacturing industries. Copyright Blackwell Publishing Ltd/ University of Adelaide and Flinders University 2005..

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  • Chia-Hung Sun & Kaliappa P. Kalirajan, 2005. "Gauging The Sources Of Growth Of High-Tech And Low-Tech Industries: The Case Of Korean Manufacturing ," Australian Economic Papers, Wiley Blackwell, vol. 44(2), pages 170-185, June.
  • Handle: RePEc:bla:ausecp:v:44:y:2005:i:2:p:170-185

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    References listed on IDEAS

    1. M. Ishaq Nadiri & Seongjun Kim, 1996. "R&D, Production Structure and Productivity Growth: A Comparison of the US, Japanese and Korean Manufacturing Sectors," NBER Working Papers 5506, National Bureau of Economic Research, Inc.
    2. Nadiri, M. Ishaq & Kim, Seongjun, 1996. "R&D, Production Structure & Productivity Growth: A Comparison of US, Japanese & Korean Manufacturing Sectors," Working Papers 96-11, C.V. Starr Center for Applied Economics, New York University.
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