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Domestic and International Knowledge Spillovers in the South Korean Manufacturing Industries

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Listed author(s):
  • Singh, Lakhwinder

Abstract

This paper explores the relationship between the productivity growth and both domestic and international knowledge spillovers in the Korean manufacturing industries, using panel data for twenty eight industries over the period 1970-2000. To empirically verify the extent of domestic and international knowledge spillovers we have followed endogenous growth approach and wisdom from new international trade theory. We find strong productivity effects from industry’s own R&D as well as domestic and foreign knowledge spillovers. International knowledge spillovers transmitted by trade played dominant role in explaining productivity growth in the Korean manufacturing industries during the 1970s and 1980s, but the international knowledge spillovers did not play any significant role in the 1990s. This empirical finding has strong implications for the Korean technology policy as well as for the strict intellectual property rights regime enacted by the WTO.

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File URL: https://mpra.ub.uni-muenchen.de/98/1/MPRA_paper_98.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 98.

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Date of creation: 04 Oct 2006
Publication status: Published in Economic and Political Weekly No.5.Vol. 3(2004): pp. 498-505
Handle: RePEc:pra:mprapa:98
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Keywords: Knowledge spillovers; Productivity growth; Manufacturing industry; South Korea;

Find related papers by JEL classification:

  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
  2. Eaton, Jonathan & Kortum, Samuel, 2001. "Trade in capital goods," European Economic Review, Elsevier, vol. 45(7), pages 1195-1235.
  3. David L. Carr & James R. Markusen & Keith E. Maskus, 2001. "Estimating the Knowledge-Capital Model of the Multinational Enterprise," American Economic Review, American Economic Association, vol. 91(3), pages 693-708, June.
  4. Lee, Keun & Lim, Chaisung, 2001. "Technological regimes, catching-up and leapfrogging: findings from the Korean industries," Research Policy, Elsevier, vol. 30(3), pages 459-483, March.
  5. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
  6. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
  7. Suh, Joonghae, 2000. "Korea's Innovation System: Challenges and New Policy Agenda," UNU-INTECH Discussion Paper Series 4, United Nations University - INTECH.
  8. Lichtenberg, Frank R. & Pottelsberghe de la Potterie, Bruno v., 1998. "International R&D spillovers: A comment," European Economic Review, Elsevier, vol. 42(8), pages 1483-1491, September.
  9. Charles I. Jones, 2002. "Sources of U.S. Economic Growth in a World of Ideas," American Economic Review, American Economic Association, vol. 92(1), pages 220-239, March.
  10. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-1280, November.
  11. Robert E. Evenson & Lakhwinder Singh, 1997. "Economic Growth, International Technological Spillovers and Public Policy: Theory and Empirical Evidence from Asia," Working Papers 777, Economic Growth Center, Yale University.
  12. Aitken, Brian & Harrison, Ann & DEC, 1994. "Do domestic firms benefit from foreign direct investment? Evidence from panel data," Policy Research Working Paper Series 1248, The World Bank.
  13. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-149, January.
  14. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
  15. Navaretti, Giorgio Barba & Tarr, David G, 2000. "International Knowledge Flows and Economic Performance: A Review of the Evidence," World Bank Economic Review, World Bank Group, vol. 14(1), pages 1-15, January.
  16. Fagerberg, Jan & Verspagen, Bart, 1998. "Productivity, R&D Spillovers and Trade," Working Papers 98.2, Eindhoven Center for Innovation Studies.
  17. Xu, Bin, 2000. "Multinational enterprises, technology diffusion, and host country productivity growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 477-493, August.
  18. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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Cited by:

  1. Hulya Ulku & Mehmet Pamukcu, 2015. "The impact of R&D and knowledge diffusion on the productivity of manufacturing firms in Turkey," Journal of Productivity Analysis, Springer, vol. 44(1), pages 79-95, August.
  2. Daniel Toro González & José Mola Ávila & Vanessa Angulo Carvajal & Martha Castro Porto & José Manuel Gómez & Marlis Angulo Vásquez, 2015. "El impacto tecnológico de la innovación en la industria naval: El Caso de Cotecmar," REVISTA ECONOMÍA & REGIÓN, UNIVERSIDAD TECNOLÓGICA DE BOLÍVAR, vol. 9(2), pages 147-167, December.
  3. Singh, Lakhwinder, 2006. "Innovations, High-Tech Trade and Industrial Development: Theory, Evidence and Policy," WIDER Working Paper Series 027, World Institute for Development Economic Research (UNU-WIDER).

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