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Does exporting promote new product introduction? : An empirical analysis of plant-product data on the Korean manufacturing sector

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  • Does exporting promote new product introduction?
  • Han, Chin Hee
  • Imperial College London


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Title Does exporting promote new product introduction?
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Sub Title

An empirical analysis of plant-product data on the Korean manufacturing sector

Material Type Articles
Author(English)

Han, Chin Hee

Publisher

[London]:Imperial College London

Date 2010-01
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Trade
Industry and Technology < Manufacturing
Holding Imperial College London

Abstract

Utilizing previously unexplored plant-product data on Korean manufacturing sector, this paper examines whether and to what extent exporting promotes the introduction of new products. Firstly, to set the stage, this paper shows that new product introduction has played a large role in the growth of Korean manufacturing sector based on a simple decomposition analysis; new product introduction account for about half of the growth of aggregate manufacturing shipments during the eight-year period 1990-1998. Secondly, this paper shows that there are positive crosssectional correlations at the plant level between exporting activity and the measure of creation of new products as well as other measures of product destruction, product adding and dropping, and product scope. The positive cross-sectional correlation between exporting and new product introduction might reflect causality running both ways: the self-selection of more “able” plants into export market and so-called the creating-by-exporting effect. (The rest omitted)