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R&D investment and job creation in Korea

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  • R&D investment and job creation in Korea
  • Kim, ByungWoo
  • Science and Technology Policy Institute


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Title R&D investment and job creation in Korea
Similar Titles
Material Type Reports
Author(English)

Kim, ByungWoo

Publisher

[Seoul]:Science and Technology Policy Institute

Date 2008-07
Series Title; No STEPI Working Paper Series / 2008-04
Pages 20
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Social Development < Employment
Holding STEPI

Abstract

If technical progresses are of a form that can be utilized by existing plant, then investors will be encouraged to create new plants. This is called "capitalization effect". However, if the technical progress is very fast, the proportion of workers released from production unit will be high. This is called "creative destruction effect".(Aghion and Howitt, 1998) We tested some propositions of Schumpeterian growth theory by real data of Korean economy. Considering the results of estimation and testing, we can see that the evidence is strongly in favor of the capitalization effect of growth on unemployment in Korean economy. But, we can see the decreasing trend of those capitalization effect by detecting the increase of creative destruction effect of growth. Finally, recent "jobless growth" may come from the nonexistence of capitalization effect of productivity growth.