|
|
|
|
Title: |
The Role of Returns to Scale and Capital
Utilization in Productivity Changes: The Case of Korean Manufacturing |
| Author: |
Kang, Jung M.;
Kwon, Jene K. |
| Author
Affiliation: |
Kyung Hee U;
Northern IL U |
| Source: |
International Economic Journal, Spring 1993, v. 7, no. 1, pp. 95-109 |
|
Publication Date: |
Spring 1993 |
|
Abstract: |
The present study examines the production
technology of South Korean manufacturing by linking TFP growth to
parameters of a translog cost function. The sources of a productivity
growth in 22 industrial sectors were identified by decomposing the
measured growth in TFP into technology, returns to scale and capital
utilization for the 1963-83 period. The study shows that, first, the
major source of the rapid growth of Korean manufacturing was the growth
of factor inputs (labor, capital, and materials); second, the returns to
scale accounted for half of the growth in TFP; and third, technical
change contributed 45 percent of TFP growth, while capital utilization
accounted for only a small portion of TFP growth. |
|
