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The effect of imports and exports on total factor productivity in Korea

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  • The effect of imports and exports on total factor productivity in Korea
  • Kim, Sangho; Lim, Hyunjoon; Park, Donghyun
  • The Research Institute of Economy, Trade and Industry


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Title The effect of imports and exports on total factor productivity in Korea
Similar Titles
Material Type Reports
Author(English)

Kim, Sangho; Lim, Hyunjoon; Park, Donghyun

Publisher

[Tokyo]:The Research Institute of Economy, Trade and Industry

Date 2007-04
Series Title; No RIETI Discussion Paper Series / 07-E-022
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Trade
Economy < Economic Conditions
Holding RIETI

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.