A Comparative Analysis of Solow Residuals in Korean and China Manufacturing Industries

다국어 초록 (Multilingual Abstract)

The Korean economy has accomplished the high rates of economic growth during the last four decades through the export-led growth strategy by the government. It is well recognized that the export in the Korean manufacturing industries has been still leading the Korean economic growth. On the other hand the Chinese economy has also achieved rapidly economic growth since 1990's. The cyclicality of productivity has been one of the essential issues in economics. Since Solow(1957) developed the dominant approach to the measurement of productivity growth, Solow’s approach, which assumes the perfect competition, the constant returns to scale, and the full use of input factor has been modified particularly in Hall’s(1990) and Basu’s(1996) works. This paper establishes the empirical model based on Hall’s and Basu’s models, estimates 4 types of Solow’s residuals in 8 Korean manufacturing industries and in Chinese economy and analyzes the cyclicality of measured productivity, comparing the productivities in both countries.

참고문헌 (Reference)

1 강주훈, "한국의 생산요소가격 변화가 마크업의 변동에 미치는 영향에 관한 실증분석: 1975-2007" 국제지역학회 15 (15): 77-100, 2011

2 박세훈, "한국경제의 총요소생산성의 순환성에 관한 실증분석(1975-2010)" 국제지역학회 15 (15): 239-261, 2011

3 Solow, Robert M, "Technical Change and the Aggregate Production Function" 39 : 312-320, 1957

4 Basu, Susanto, "Return to Scale in U.S. Production: Estimates and Implications" 105 : 249-283, 1997

5 Bruno, M, "Profits and the Productivity Slowdown" 99 : 1-30, 1984

6 Malley, J, "Productivity, Technology and Economic Growth" Kluwer Academic Publishers 2000

7 Basu, S, "Procyclical Productivity: Increasing Returns or Cyclical Utilization" 111 : 719-751, 1996

8 Bernanke, B. S, "Procyclical Labor Productivity from Interwar U.S Manufacturing Industries" 99 : 439-459, 1991

9 Kang, J. H, "Openness and Markups in Korean Manufacturing Industries" 49 (49): 123-150, 2001

10 Rotemberg, J, "Markups and the Business Cycle" NBER Macro Annual 1991

11 Ramey, V, "Inventories as Factors of Production and Economic Fluctuations" 89 : 339-354, 1989

12 Hall, R, "Invariance Productivity Residual" MIT Press 1990

13 주연화, "Inflation Dynamics in Korea: Estimation of Marginal Costs in Manufacturing Industries (1975-2010)" 국제지역학회 17 (17): 51-73, 2013

14 Kang, J. H, "Estimation for Total Factor Productivity in Korean manufacturing industries" Published in Kwandong University in Korea 22 : 81-98, 2004

15 Rumler, Fabio, "Estimates of the Open Economy New Keynesian Phillips Curve for Euro Area Countries" ECB 2005

16 Leith, C, "Estimated Open Economy New Keynesian Phillips Curves for the G7" 18 : 405-426, 2007

17 Kang, J, "Cyclicality of Markups and Real Wages in Korea" 60 : 343-349, 1998

18 Burnside, Craig, "Capital Utilization and Returns to Scale.”In NBER Macroeconomics Annual" MIT Press 1995

19 Batini, N, "An open-economy new Keynesian Phillips Curve for the United Kingdom" 52 : 1061-1071, 2005