Government Interventions and Productivity Growth

Research output: Contribution to journalArticle

77 Citations (Scopus)

Abstract

This article investigates the impact of government industrial policy and trade protection of the manufacturing sector in Korea. Empirical results are provided, using four-period panel data for the years 1963 through 1983, for thirty-eight Korean industries in which trade protection reduced growth rates of labor productivity and total factor productivity, while industrial policies, such as tax incentives and subsidized credit, were not correlated with total factor productivity growth in the promoted sectors. The evidence thus implies that less government intervention in trade is linked to higher productivity growth.

Original languageEnglish
Pages (from-to)391-414
Number of pages24
JournalJournal of Economic Growth
Volume1
Issue number3
Publication statusPublished - 1996 Dec 1

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Trade protection
Industrial policy
Government intervention
Productivity growth
Korea
Empirical results
Tax incentives
Total factor productivity growth
Total factor productivity
Manufacturing sector
Government
Industry
Panel data
Labour productivity
Credit

Keywords

  • Industrial policy
  • Korea
  • Productivity growth
  • Trade policy

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Government Interventions and Productivity Growth. / Lee, Jong-Wha.

In: Journal of Economic Growth, Vol. 1, No. 3, 01.12.1996, p. 391-414.

Research output: Contribution to journalArticle

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