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

  • Sangho KIM
  • Hyunjoon LIM
  • Donghyun PARK

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.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 07022.

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Length: 40 pages
Date of creation: Apr 2007
Date of revision:
Handle: RePEc:eti:dpaper:07022
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