IDEAS home Printed from https://ideas.repec.org/a/kap/jproda/v44y2015i2p157-173.html
   My bibliography  Save this article

Measuring the evolution of Korea’s material living standards 1980–2012

Author

Listed:
  • Taehyoung Cho
  • Junghoon Kim
  • Paul Schreyer

Abstract

Based on a production-theoretic framework, we measure the effects of real output prices, primary inputs, and multi-factor productivity growth on Korea’s real income growth over the past 30 years. The empirical analysis is based on a new dataset for Korea with detailed information on labor and capital inputs, including series on land and inventories assets. We find that while over the entire period, capital and labor inputs explain the bulk of Korean real income growth, productivity growth has come to play an increasingly important role since the mid-1990s, providing some evidence of a transition from ‘input-led’ to ‘productivity-led’ growth. Terms of trade and other price effects were modest over the longer period, but had significant real income effects over sub-periods. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Taehyoung Cho & Junghoon Kim & Paul Schreyer, 2015. "Measuring the evolution of Korea’s material living standards 1980–2012," Journal of Productivity Analysis, Springer, vol. 44(2), pages 157-173, October.
    • Handle: RePEc:kap:jproda:v:44:y:2015:i:2:p:157-173
    DOI: 10.1007/s11123-014-0404-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11123-014-0404-0
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11123-014-0404-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Diewert, W E, 1974. "Intertemporal Consumer Theory and the Demand for Durables," Econometrica, Econometric Society, vol. 42(3), pages 497-516, May.
    2. Young, Alwyn, 1994. "Lessons from the East Asian NICS: A contrarian view," European Economic Review, Elsevier, vol. 38(3-4), pages 964-973, April.
    3. Paul A. Samuelson, 1953. "Prices of Factors and Goods in General Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 21(1), pages 1-20.
    4. Kohli, Ulrich, 2004. "Real GDP, real domestic income, and terms-of-trade changes," Journal of International Economics, Elsevier, vol. 62(1), pages 83-106, January.
    5. Ulrich Kohli, 2006. "Real GDP, Real GDI and Trading Gains: Canada, 1981-2005," International Productivity Monitor, Centre for the Study of Living Standards, vol. 13, pages 46-56, Fall.
    6. Diewert, W. E., 1973. "Functional forms for profit and transformation functions," Journal of Economic Theory, Elsevier, vol. 6(3), pages 284-316, June.
    7. Diewart, W Erwin & Morrison, Catherine J, 1986. "Adjusting Output and Productivity Indexes for Changes in the Terms of Trade," Economic Journal, Royal Economic Society, vol. 96(383), pages 659-679, September.
    8. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    9. Dale W. Jorgenson, 2009. "A New Architecture For The U.S. National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 1-42, March.
    10. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (II): Applications of the Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 2, number fuss1978a.
    11. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 156-162.
    12. Dale W. Jorgenson & J. Steven Landefeld, 2006. "Blueprint for Expanded and Integrated US Accounts: Review, Assessment, and Next Steps," NBER Chapters, in: A New Architecture for the US National Accounts, pages 13-112, National Bureau of Economic Research, Inc.
    13. Hamada, Koichi & Iwata, Kazumasa, 1984. "National Income, Terms of Trade and Economic Welfare," Economic Journal, Royal Economic Society, vol. 94(376), pages 752-771, December.
    14. Dale W. Jorgenson, 1966. "The Embodiment Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 74(1), pages 1-1.
    15. J. A. Sefton & M. R. Weale, 2006. "The Concept of Income in a General Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(1), pages 219-249.
    16. McFadden, Daniel, 1978. "Cost, Revenue, and Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 1, McMaster University Archive for the History of Economic Thought.
    17. Charles R. Hulten & Paul Schreyer, 2010. "GDP, Technical Change, and the Measurement of Net Income: the Weitzman Model Revisited," NBER Working Papers 16010, National Bureau of Economic Research, Inc.
    18. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (I): The Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number fuss1978.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juan Aparicio & Fernando Borras & Jesus T. Pastor & Jose L. Zofio, 2016. "Loss Distance Functions and Profit Function: General Duality Results," International Series in Operations Research & Management Science, in: Juan Aparicio & C. A. Knox Lovell & Jesus T. Pastor (ed.), Advances in Efficiency and Productivity, chapter 0, pages 71-96, Springer.
    2. Valentin Zelenyuk, 2021. "Performance Analysis: Economic Foundations & Trends," CEPA Working Papers Series WP162021, School of Economics, University of Queensland, Australia.
    3. Negri, Donald H. & Brooks, Douglas H., 1988. "The Determinants Of Irrigation Technology Choice," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270403, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Charles R. Hulten & Paul Schreyer, 2010. "GDP, Technical Change, and the Measurement of Net Income: the Weitzman Model Revisited," NBER Working Papers 16010, National Bureau of Economic Research, Inc.
    5. W. Erwin Diewert & Kevin J. Fox, 2017. "Decomposing Value Added Growth into Explanatory Factors," Discussion Papers 2017-02, School of Economics, The University of New South Wales.
    6. Claudio Sfreddo, 2004. "International-price and terms-of-trade effects on factor productivity: international comparisons," International Trade 0408002, University Library of Munich, Germany, revised 07 Sep 2004.
    7. Diewert, Erwin & Fox, Kevin J., 2019. "Productivity Indexes and National Statistics: Theory, Methods and Challenges," Microeconomics.ca working papers erwin_diewert-2019-8, Vancouver School of Economics, revised 25 Apr 2019.
    8. Dennis Epple & Brett Gordon & Holger Sieg, 2010. "A New Approach to Estimating the Production Function for Housing," American Economic Review, American Economic Association, vol. 100(3), pages 905-924, June.
    9. Ulrich Kohli, 2001. "Sanyal and Jones on trade in middle products," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(1), pages 39-63.
    10. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    11. Deb Kusum Das, 2003. "Manufacturing productivity under varying trade regmies: India in the 1980s and 1990s," Indian Council for Research on International Economic Relations, New Delhi Working Papers 107, Indian Council for Research on International Economic Relations, New Delhi, India.
    12. R H Green & W D Cook, 2004. "A free coordination hull approach to efficiency measurement," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(10), pages 1059-1063, October.
    13. Førsund, Finn R. & Hjalmarsson, Lennart, 2008. "Dynamic Analysis of Structural Change and Productivity Measurement," Memorandum 27/2008, Oslo University, Department of Economics.
    14. Finn Førsund & Lennart Hjalmarsson, 2004. "Are all Scales Optimal in DEA? Theory and Empirical Evidence," Journal of Productivity Analysis, Springer, vol. 21(1), pages 25-48, January.
    15. W. Erwin Diewert & Kevin J. Fox, 2021. "The Difference Approach to Productivity Measurement and Exact Indicators," Springer Proceedings in Business and Economics, in: Christopher F. Parmeter & Robin C. Sickles (ed.), Advances in Efficiency and Productivity Analysis, pages 9-40, Springer.
    16. Peters, Cornelius, 2015. "Do age complementarities affect labour productivity? Evidence from German firm level data," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112941, Verein für Socialpolitik / German Economic Association.
    17. Flaig Gebhard & Rottmann Horst, 2001. "Input Demand and the Shortand Long-Run Employment Thresholds: An Empirical Analysis for the German Manufacturing Sector," German Economic Review, De Gruyter, vol. 2(4), pages 367-384, December.
    18. Molua, Ernest L., 2005. "The economics of tropical agroforestry systems: the case of agroforestry farms in Cameroon," Forest Policy and Economics, Elsevier, vol. 7(2), pages 199-211, February.
    19. Giancarlo Moschini, 1988. "A Model of Production with Supply Management for the Canadian Agricultural Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 318-329.
    20. W. Briec & K. Kerstens, 2009. "Infeasibility and Directional Distance Functions with Application to the Determinateness of the Luenberger Productivity Indicator," Journal of Optimization Theory and Applications, Springer, vol. 141(1), pages 55-73, April.

    More about this item

    Keywords

    Real income; Productivity; Terms of trade; Growth accounting Korea; C43; C82; D24; D31; F14; I3;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jproda:v:44:y:2015:i:2:p:157-173. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.