Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/200774 
Year of Publication: 
2015
Citation: 
[Journal:] KDI Journal of Economic Policy [ISSN:] 2586-4130 [Volume:] 37 [Issue:] 3 [Publisher:] Korea Development Institute (KDI) [Place:] Sejong [Year:] 2015 [Pages:] 31-53
Publisher: 
Korea Development Institute (KDI), Sejong
Abstract: 
According to the macroeconomic allocation efficiency measure, particularly based on the methodology of Hsieh and Klenow (2009), Korea's allocation efficiency in the manufacturing industry deteriorated in the 2000s compared to that in the 1990s. This study compares the potential TFP gain when resource allocation is removed, an indicator of allocation inefficiency according to Hsieh and Klenow (2009), and the productivity dispersion in the Korean manufacturing industry. It finds that the TFP gain may be better explained by TFP dispersions rather than proxies related to factors of distortion. The findings imply that we should investigate the sources of TFP dispersion rather than the sources of distortion to explain increases in the TFP gain (or TFP loss), which is considered as allocation inefficiency in the literature.
Subjects: 
Misallocation
Total Factor Productivity (TFP)
Productivity Dispersion
JEL: 
O11
D24
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

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