Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/200814 
Authors: 
Year of Publication: 
2017
Citation: 
[Journal:] KDI Journal of Economic Policy [ISSN:] 2586-4130 [Volume:] 39 [Issue:] 4 [Publisher:] Korea Development Institute (KDI) [Place:] Sejong [Year:] 2017 [Pages:] 25-50
Publisher: 
Korea Development Institute (KDI), Sejong
Abstract: 
Whereas a large variety of previous studies show mixed results regarding the relationship between public investment and economic outcome, several studies have been conducted on related issues in Korea. The present study deals with the effect of public investment in Korea on economic growth and productivity. Using administrative data, it exploits three different methodologies: the total factor productivity approach, production function approach, and stochastic frontier production function approach. The results of this study show that public investment has a statistically significant effect on economic growth. However, it contributes little to enhance productivity. It is explained that there exists inefficiency of production in the Korean economy. These findings indicate that public investment has played a central role in the direct input factor and not in indirect role in Korea. Thus, it is necessary for public investment policies to concentrate on enhancing the efficiency of the Korean economy.
Subjects: 
Public Investment
Public Capital
Total Factor Productivity
Production Function
Stochastic Frontier Production Function
JEL: 
C13
D24
H41
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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