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The Effect of Imports and Exports on Total Factor Productivity in Korea

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  • Sangho KIM
  • Hyunjoon LIM
  • Donghyun PARK

Abstract

We investigate the effect of imports and exports on total factor productivity in Korea during 1980-2003. We find Granger causality from imports to total factor productivity (TFP) growth, but no causality from exports to TFP growth. We then investigate the impact of trade and other variables on TFP growth. According to our results, imports have a significant positive effect on TFP growth but exports do not. In addition, our results indicate that the positive impact of imports arises not only from the competitive pressures associated with the imports of consumer goods but also from technological transfers embodied in imports of capital goods from developed countries.

Suggested Citation

  • Sangho KIM & Hyunjoon LIM & Donghyun PARK, 2007. "The Effect of Imports and Exports on Total Factor Productivity in Korea," Discussion papers 07022, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:07022
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    Cited by:

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    2. Salman Haider & Aadil Ahmad Ganaie & Bandi Kamaiah, 2019. "Total Factor Productivity and Openness in Indian Economy: 1970–2011," Foreign Trade Review, , vol. 54(1), pages 46-57, February.
    3. Bo Zhou & Yanping Xu & Seul Ki Lee, 2019. "Tourism development and regional production efficiency: Evidence from southwestern China," Tourism Economics, , vol. 25(5), pages 800-818, August.
    4. Yong He, 2019. "An Empirical Test on Regional Spillovers through Intra-and Inter-national Trade," Post-Print hal-03185078, HAL.
    5. Yong He & Hong Zhou, 2011. "Estimating Chinese Interprovincial OutPut Spillovers with Provincial Input-Output Tables," CERDI Working papers halshs-00553102, HAL.
    6. He, Yong, 2018. "An Empirical Test on Regional Spillovers through Intra- and International Trade," MPRA Paper 88780, University Library of Munich, Germany.
    7. Cuneyt Koyuncu & Rasim Yilmaz, 2010. "Chinese exports and productivity gains: panel evidence," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(2), pages 161-170, November.
    8. Keun Rhee & Hak Pyo, 2010. "Financial crisis and relative productivity dynamics in Korea: evidence from firm-level data (1992–2003)," Journal of Productivity Analysis, Springer, vol. 34(2), pages 111-131, October.

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