The R&D And Productivity Relationship Of Korean Listed Firms
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- Dr.. Hye-Sung Kim, Assistant Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: This study analyzes the relationship between R&D investment and the productivity of Korean R&D-engaged firms. An interdependent chain of equations including the propensity to invest, R&D investment and productivity are estimated in a multi-step procedure accounting for selectivity and simultaneity biases. Using Korean firm level panel data of listed firms from 1986 to 2002, we find four main empirical results. First, there is a two-way causal relationship between R&D investment and productivity for Korean listed firms. Second, Chaebol firms were associated with lower R&D growth as well as lower labor productivity growth in comparison to non-Chaebol firms. Third, there was a substantial reduction in growth rates both in R&D investment and labor productivity in 1997-1998, immediately following the Asian financial crisis. Fourth, considering the positive feedback effect from productivity growth to R&D growth, a decrease in R&D investment growth after the Asian financial crisis should have been harmful by further decreasing productivity growth.
The R&D And Productivity Relationship Of Korean Listed Firms
PDF (Portable Document Format)
335 KB
Created on 11/8/2022
Views: 77
Additional Information
- Publication
- Heshmati A, Kim H. The R&D and productivity relationship of Korean listed firms. Journal of Productivity Analysis. 2011;36(2):125-142. Publisher version of record available at: https://www.jstor.org/stable/23883831
- Language: English
- Date: 2011
- Keywords
- Productivity, Financial investments, Manufacturing industries, Labor productivity, Capital investments, Furniture making, Productivity growth, Papermaking