Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/71691 
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Papers No. 7235
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This study measures productivity growth using the Metafrontier Malmquist-Luenberger productivity growth index (MML index) method and decomposes the index. The results are compared with those obtained from the conventional Malmquist-Luenberger (ML) productivity growth index. MML has two advantages compared with the ML index. The former is able to consider undesirable output as a by-product of production which accounts for producer group heterogeneities. As a result, it enables separation and estimation of changes in the technological gap between regional and global frontier technologies. The proposed index is employed to measure productivity growth and decompose its components in 14 Korean industrial sectors during the period between 1981 and 2007. For the purpose of detailed analysis of policy effects, the study period was divided into three decades. The results show that technology innovation can be regarded as a more important factor of productivity growth, rather than efficiency change. The chemical and Petrochemical, Machinery and Transport equipment industries are treated as global innovators in the whole period. However, the result differs according to decades. It is found that the groups with higher energy efficient technology and profitability obtain a higher productivity growth rate in comparison with their low energy efficient technology industry counterparts. Policy implications of the empirical results are discussed.
Subjects: 
CO2 emission
undesirable output
DEA
Malmquist-Luenberger productivity (ML) index
Metafrontier Malmquist-Luenberger productivity (MML) index
productivity change
JEL: 
D24
C61
O31
O44
Document Type: 
Working Paper

Files in This Item:
File
Size
513.75 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.