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The Internationalization and Performance of Korean and Japanese Firms: An Empirical Analysis Based on Micro-data

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  • Sanghoon Ahn
  • Kyoji Fukao
  • Hyeog Ug Kwon

Abstract

Both Korea and Japan are leading exporting countries of advanced manufactured products, and the competitive and efficient manufacturing activities are important pillars of the affluence of the two economies. Yet, comparing the manufacturing sectors of the two countries in the 1990s brings to light a startling contrast in their performance. Applying the same empirical method to the analysis of micro-data for Japanese manufacturing firms for 1994-2001 and Korean manufacturing plants for 1990-98, this paper examines differentials in Japanese and Korean productivity growth. This paper focuses on the role of competition in firm dynamics and on the importance of internationalization as a major determinant of firm performance.

Suggested Citation

  • Sanghoon Ahn & Kyoji Fukao & Hyeog Ug Kwon, 2005. "The Internationalization and Performance of Korean and Japanese Firms: An Empirical Analysis Based on Micro-data," Discussion papers 05008, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:05008
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Timothy Kehoe & Sewon Hur & Kim Ruhl & Jose Asturias, 2016. "Firm Entry and Exit and Aggregate Growth," 2016 Meeting Papers 573, Society for Economic Dynamics.
    2. Inha Oh & Almas Heshmati & Chulwoo Baek & Jeong-Dong Lee, 2009. "Comparative Analysis Of Plant Dynamics By Size: Korean Manufacturing," The Japanese Economic Review, Japanese Economic Association, vol. 60(4), pages 512-538.
    3. Kyoji Fukao & Hyeog Ug Kwon, 2006. "Why Did Japan'S Tfp Growth Slow Down In The Lost Decade? An Empirical Analysis Based On Firm-Level Data Of Manufacturing Firms," The Japanese Economic Review, Japanese Economic Association, vol. 57(2), pages 195-228.
    4. Sanghoon Ahn & Jong-Wha Lee, 2007. "Integration and Growth in East Asia," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 25(S1), pages 131-168, December.
    5. Brandt, Loren & Van Biesebroeck, Johannes & Zhang, Yifan, 2012. "Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing," Journal of Development Economics, Elsevier, pages 339-351.
    6. Bellone, Flora & Kiyota, Kozo & Matsuura, Toshiyuki & Musso, Patrick & Nesta, Lionel, 2014. "International productivity gaps and the export status of firms: Evidence from France and Japan," European Economic Review, Elsevier, vol. 70(C), pages 56-74.
    7. Jeong-Dong Lee, 2009. "Industry Dynamics and Productivity Research," TEMEP Discussion Papers 200929, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2009.
    8. Hyun Jeong Kim & Hak Kil Pyo, 2012. "International Comparison of Productivity in Market Services: Korea with EU KLEMS Member Countries," Chapters,in: Industrial Productivity in Europe, chapter 15 Edward Elgar Publishing.
    9. Toshihiko Mukoyama, 2009. "On the Establishment Dynamics in the United States and Japan," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, pages 53-74.
    10. Matilde Mas & Robert Stehrer (ed.), 2012. "Industrial Productivity in Europe," Books, Edward Elgar Publishing, number 14369, April.

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