Download or read book Productivity Analysis on the Service Sector in Korea written by Hak K. Pyo and published by . This book was released on 2018 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the most dramatic characterizations of late industrialization is the speed and scope of structural transformation from manufacturing-based to service-based economy. This study aims to analyze this transformation in the Korean economy in terms of productivity performance in its service sector over the period of 1995-2013 in which the economy experienced two financial crises in the years 1997 and 2007. The major finding is that, while the growth rate of gross output in the service sector has decelerated more rapidly than in the manufacturing sector, the growth rate of total factor productivity (TFP) has improved from near 0% during 1996-2010 to 1.41% during 2011-2013. Particularly, the improvement in TFP in distribution and producer services has been impressive, which indicates that the Korean economy is transforming itself toward a service-oriented growth and that two financial crises have helped such transformation. However, the relative level of TFP in the service sector remains to be far behind than that of the US and Japan.

Download or read book A Review on Korea China and Japan s Comparative Advantage in the IT Services Sector written by Seung Kwon Na and published by . This book was released on 2016 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research attempts to draw the policy implication of cooperative activities among Korea, China and Japan based on an analysis on a comparative advantage of the IT service industry, focusing on productivity analysis. The results of the productivity (efficiency) analysis show that productivity gap exists between the three countries, but the gap is narrowing. The changing gap seems to result from a catch-up effect between countries and companies rather than technical advancement across the industry. In addition, a close look into the institutional framework which affects the productivity of IT services sector in Korea, China and Japan revealed five areas (introduction and enforcement of regulations, existing legal and regulatory frameworks, transparency of IT related policies, preferential treatment of home-grown technologies in the public sector, bureaucracy) that can prove to be excessive regulations on IT service companies. Based on the study results, this paper draws the policy implications for further cooperation among three countries. First, the three countries could cooperate in building a common data set for a more concrete productivity analysis. Second, the three countries could further cooperate in the industry level and lower the entry barriers for instance. Finally, the three countries could cooperate to upgrade the expertise of middle management and foster human resource development.

Download or read book A Study of the Effects of Entry and Exit on Productivity Growth in the Personal Service Sector written by Hyunkyung Choe and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The service industry makes up more than 57%2) of the total annual value added in Korea and provides almost 70% of the jobs of the economy. While a portion of the industry is growing continuously, in terms of labor productivity, the productivity of the service sector has continued to decline, and it is only 47% compared to that of the manufacturing industry. Therefore, we must seek methods for increasing the productivity of the service industry from various aspects.However, the service industry, as far as the government is primarily concerned, only includes medical, cultural contents, tourism and leisure, social services and business services industries. Thus, policies directed toward the personal services industry have not been well established. These industries have some common characteristics, such as having poor domestic markets and a low entry barrier due to not requiring high expertise. Thus, the main problem of this kind of industry is the service sector productivity decline due to excess entry.In general, excess entry is assumed as the cause of the low productivity in the industries. Therefore, as a solution, introducing entry limit regulations has been discussed as policy alternatives for regulation. However, we would like to show that the dynamics of entry and exit act differently in each industry, and that it is possible for active entry and exit to perform a positive function of improving productivity of the industry. To this end, we analyze what impacts entry and exit of each livelihood type personal service industry have on productivity.Intrinsic differences may exist between productivity growth mechanisms in manufacturing and service industries. In terms of manufacturing, R&D and/or technological innovation have been regarded as the main factors of increasing productivity.In the case of service industries, entry and exit can be major factors in improving productivity. This is because the entry of highly productive establishments and the exit of low productive establishments can play roles to enhance productivity in the industries.This study defined the five service industries as the livelihood type personal service industries, and analyzed productivity changes over entry and exit by each service industry. Since employment and productivity differ markedly from industry to industry, it is necessary to analyze by industry.Data for the analysis were obtained from the 2005 Census and the 2010 economic services Census of the KOSTAT (Services division). We made a panel data set by connecting the two databases in the establishment level. Thus, we can separate the entry and exit establishments during the 2005 and 2010 period. We used the labor productivity as sales divided by the number of the employees.

Download or read book Boosting Productivity in Korea s Service Sector written by Randall S. Jones and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Innovation Characteristics of Korean Service Companies written by Donghee Lee and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, the importance of the service industry has been steadily increasing in terms of GDP and employment. In general, it is known that the service sectors of developed countries make significant contributions to overall economic productivity compared to those in less developed countries. However, the development of Korea's service industry rates poorly compared to advanced countries. Employment in the service industry has been increasing since the 1990s, but growth in value-added has been stagnant for the last 10 years. In addition, while the employment creation effect of the service industry is large, the proportion of low-wage workers is high, and it is estimated that most service companies are small in scale. For comparison, in 2017 the proportion of workers with an average monthly wage of less than 2 million won is 29.3 percent in the manufacturing industry and 48.1 percent in the service industry. With such a high proportion GDP and employment in service industry, awareness of the problem of low productivity in the service sector is growing and the issue is naturally attracting policy attention to service innovation, that is, service R&D investment.In this paper, we analyze the characteristics of R&D investment behavior in order to derive policy implications for innovation investment in Korean service companies. The authors performed a principal component analysis (PCA) and a cluster analysis on Korean service and manufacturing based on innovation behavior.In the analysis, the firms are classified by the innovation behavior rather than Standard Industry Classification (SIC). Even if two companies are possess the same SIC designation, there may be various differences in innovation behavior depending on the management environment and capacity of each individual company. Therefore, classifying business groups based on innovation behavior rather than SIC is a better approach to understanding companies in terms of innovation.

Download or read book Boosting Productivity in Korea s Service Sector written by Randall S. Jones and published by . This book was released on 2009 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book From Miracle to Maturity written by Barry Eichengreen and published by BRILL. This book was released on 2020-05-11 with total page 395 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The economic growth of South Korea has been a remarkable success story. After the Korean War, the country was one of the poorest economies on the planet; by the twenty-first century, it had become a middle-income country, a member of the Organization of Economic Cooperation and Development (the club of advanced economies), and home to some of the world’s leading industrial corporations. And yet, many Koreans are less than satisfied with their country’s economic performance, given the continuing financial volatility and sluggish growth since the Korean economic crisis of 1997–1998.From Miracle to Maturity offers a comprehensive qualitative and quantitative analysis of the growth of the Korean economy, starting with the aggregate sources of growth (growth of the labor force, the stock of capital, and productivity) and then delving deeper into the roles played by structural change, exports, foreign investment, and financial development. The authors provide a detailed examination of the question of whether the Korean economy is now underperforming and ask, if so, what can be done to solve the problem."

Download or read book Boosting Productivity in Korea s Service Sector written by and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Korea s Growth Prospects Overcoming Demographics and COVID 19 written by Mr. Andrew J Swiston and published by International Monetary Fund. This book was released on 2021-03-26 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Korea’s economy has leaped to high-income status thanks to several decades of sustained high growth. However, population aging and shifts in global demand provide headwinds for future growth and Korea now faces the effects of COVID-19 on economic activity. This paper asseses the expected drag on potential growth from these factors and discusses policies that could provide offsetting upward momentum by facilitating structural transformation. We find that potential output growth slowed to about 21⁄2 percent before the COVID-19 pandemic and would have fallen to 2 percent by 2030, mainly due to demographic factors. Moreover, there is a possibility of scarring from the COVID-19 shock as adjustment frictions from structural rigidities interact with shifts in demand and supply patterns, lowering investment and labor force participation. At the same time, industry-level analysis suggests ample scope to raise productivity, especially in services where productivity gains have lagged. Addressing these rigidities could offset a large proportion of the expected downward pressure on potential output.

Download or read book Global Productivity written by Alistair Dieppe and published by World Bank Publications. This book was released on 2021-06-09 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt: The COVID-19 pandemic struck the global economy after a decade that featured a broad-based slowdown in productivity growth. Global Productivity: Trends, Drivers, and Policies presents the first comprehensive analysis of the evolution and drivers of productivity growth, examines the effects of COVID-19 on productivity, and discusses a wide range of policies needed to rekindle productivity growth. The book also provides a far-reaching data set of multiple measures of productivity for up to 164 advanced economies and emerging market and developing economies, and it introduces a new sectoral database of productivity. The World Bank has created an extraordinary book on productivity, covering a large group of countries and using a wide variety of data sources. There is an emphasis on emerging and developing economies, whereas the prior literature has concentrated on developed economies. The book seeks to understand growth patterns and quantify the role of (among other things) the reallocation of factors, technological change, and the impact of natural disasters, including the COVID-19 pandemic. This book is must-reading for specialists in emerging economies but also provides deep insights for anyone interested in economic growth and productivity. Martin Neil Baily Senior Fellow, The Brookings Institution Former Chair, U.S. President’s Council of Economic Advisers This is an important book at a critical time. As the book notes, global productivity growth had already been slowing prior to the COVID-19 pandemic and collapses with the pandemic. If we want an effective recovery, we have to understand what was driving these long-run trends. The book presents a novel global approach to examining the levels, growth rates, and drivers of productivity growth. For anyone wanting to understand or influence productivity growth, this is an essential read. Nicholas Bloom William D. Eberle Professor of Economics, Stanford University The COVID-19 pandemic hit a global economy that was already struggling with an adverse pre-existing condition—slow productivity growth. This extraordinarily valuable and timely book brings considerable new evidence that shows the broad-based, long-standing nature of the slowdown. It is comprehensive, with an exceptional focus on emerging market and developing economies. Importantly, it shows how severe disasters (of which COVID-19 is just the latest) typically harm productivity. There are no silver bullets, but the book suggests sensible strategies to improve growth prospects. John Fernald Schroders Chaired Professor of European Competitiveness and Reform and Professor of Economics, INSEAD

Download or read book Productivity Analysis of Korean Export Industries written by Chŏk-kyo Kim and published by . This book was released on 1972 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Inclusive Growth Review of Korea Creating Opportunities for All written by OECD and published by OECD Publishing. This book was released on 2021-02-08 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years Korea has stepped up efforts to reduce inequalities in recognition that a fairer economic model is also the most sustainable one. In order to support this new policy direction, the OECD has carried out novel analysis of inclusive growth building on its Framework for Policy Action, developed by the OECD to improve the prospects of the groups left behind.

Download or read book The Inter Industry Effect of Productivity on Employment written by Jin Woong Kim and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The development of technology improves the efficiency of the production process and increases the competitiveness of the commodity produced in general. Considering an open economy, technology raises a price and a quality competitiveness of domestic goods in the international market. Therefore, technology innovation is known to be one of the most essential factors in economic growth. However, there are two different views regarding to the effects of technology on employment. A negative insight of technology on employment insists that a simple labor-saving technology innovation like the introduction of automated equipment increases value-added at the expense of unskilled labor. On the contrary, technology innovation in some industries causes ultimate growth in the industry, and subsequently requires more employment. This is the income effect of technology innovation. Besides technology innovation in some industries spills over into other industries, leads to their growth, and brings about positive inter-industry effects from the technology. These two insights regarding to the technology effect on employment have been cited in the previous literature. First, with the negative aspects, Gali (1999) shows that positive technology innovation reduced U.S. total work hours in the short run. Francis and Ramsey(2005) and Basu, Fernald, and Kimball(2006) also suggest that an aggregate technology shock can reduce the use of labor, investment and real interest rates, even in the short run. And Canova, Lopez-Salido, and Michelacci(2007) suggest that a possible reason for this mechanism is “search friction” in the labor market. Kim, Choi, and Lee (2007) investigate the effects of labor productivity shocks on employment in aggregate, manufacturing, services, ICT, and non-ICT industries using 1993~2006 data in Korea. They show that a productivity shock in an industry reduces employment of the industry in the short run, but the positive transmission effects of productivity on employment exist from non-ICT innovation to ICT employment. Choi and Lee(2008) provide that employment was reduced, especially in for unskilled jobs, by technological development and globalization during the years 1991~2007 in Korea. They estimate that the reduction was 11,000 job positions as an annual average.6) Kim(2008b) insists that the technology innovation in Korea has had a labor saving feature. As empirical evidence, he showed the negative relationship between productivity and employment using panel model with 1993~2007 data.However, some studies show that the effect of technology on employment can be positive. The idea is based on the theory of RBC(Real Business Cycle), of which technology innovation increases employment as well as production. Related past studies are summarized in Christiano et al.(2003) and Uhlig (2004).8) Kim(2001)9) provides that there has been no significant employment reduction effect in Korea since 1970 using the empirical method of Gali (1999). Also, Kang(2006)10) uses the same empirical method with Gali(1999) and shows that the effects of technology innovation on employment can be different across industries. The effects were significantly positive in manufacturing, but insignificant in services.This paper investigates the effect of productivity on employment and also tests whether the effect has changed from the year 2000. In particular, the paper attempts to include the inter-industry effect of productivity on employment. The initiative of considering inter-industrial effect of productivity starts from Kim and Kim(2008)11) which investigates the effect of total factor productivity on investment and employment and shows two different empirical results by model specification; the effect was positive using national level data, but was negative using industry panel data. We have outlined the purpose of the paper and related studies in this first section. In section 2, the data for the empirical analysis is described. Section 3 and section 4 show the empirical model specifications for analysis and the subsequent results. Section 5 provides the conclusion and implications from the empirical results.

Download or read book Employment Structure and Job Creation Strategy in Service Industries written by C.K Kim and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Korea had one of the fastest growing economies in the world from the onset of industrialization in the early 1960s to the late 1990s. Korea's economic development in those years had been based on industrialization that emphasized manufacturing rather than service industries. However, the tertiary industry (service sectors) has been steadily growing, and the importance of the service sector has been increasing in recent years. The services industry constitutes the largest sector of Korea's economy in terms of production and employment. Korea's service industry employed about 73.3% of the total workers in 2010 and accounted for 58.1% of the economy's total value added in 2011. Our economy is now suffering from simultaneous decreases in the potential growth rate and job growth rate, expressed as 'jobless growth in manufacturing and job-rich depression in service industry'. The increases in employment are led by the knowledge-based service sectors while the overall productivity level of the service sector is low and its productivity growth has decelerated compared with other developed countries. The growth and development of the service industry may expand the service demand market and job-creating capacities. This may require institutional improvements to facilitate the productivity transmission mechanism in the economy. The purpose of this article is to provide an overview of the characteristics of the employment structure by decomposing the factors of the changes of industrial employment, based on the supply-demand balance equations of the Input-Output table. We also make policy suggestions to increase job creation and improve job stability in service industries of Korea.

Download or read book Productivity Analysis in the Service Sector with Data Envelopment Analysis written by Necmi K. Avkiran and published by . This book was released on 2002 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: Productivity analysis in the service sector with data envelopment analysis.

Download or read book Productivity and Product Markets in Korea Evidence from Advanced Economies written by Mr. Andrew J Swiston and published by INTERNATIONAL MONETARY FUND. This book was released on 2022-10-28 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper constructs an industry-level dataset of productivity across advanced economies, showing that Korea’s labor productivity and total factor productivity levels are below the median of other advanced economies. We identify sizable industry-level productivity gaps in Korea with respect to the global frontier, especially in market-oriented services. Using the OECD’s Product Market Regulation (PMR) Indicators, we show that tighter PMRs slow industry-level productivity growth, and these effects occur across all areas of PMRs—state control, barriers to entrepreneurship, and barriers to trade and investment—and through several detailed indicators. These effects are transmitted through higher product prices and unit labor costs of industries exposed to regulation. The results confirm the potential for Korea to boost overall productivity and growth through PMR reforms, especially by lowering barriers in service and network sectors, reducing restrictions applying to trade and investment, and evaluating the scope of government involvement in the economy.

Download or read book Productivity Growth and Efficiency Dynamics of Korean Structural Transformation written by Hyeok Jeong and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: