Despite the enhanced research on the link between trade and economic growth, few studies focuses the impacts of trade to the regional economy within the country. This paper estimates the relationship between multi factor productivity of manufacturing ...
Despite the enhanced research on the link between trade and economic growth, few studies focuses the impacts of trade to the regional economy within the country. This paper estimates the relationship between multi factor productivity of manufacturing industries and openness of the regional economy in Korea in order to investigate the effects of openness and international trade on economic growth. The estimation shows that various measures of openness and international trade have significant effects on total factor productivity, which is one of major sources of the different economic growth rate among the regions.