Keywords: total factor productivity (TFP), foreign source in the Korean economic growth, assembly production system, corporate technology strategy
A review of total factor productivity studies in Korea and a discussion of limits to national and corporate technology strategies
In this paper, we review studies of total factor productivity (TFP) and limitations of technology strategies in Korea. Three distinct issues for discussion emerge from the TFP studies in Korea: methodologies measuring TFP, the relative size of TFP and the role of government enhancing productivity. It seems that many economists agree that the contribution rale of TFP as a proportion of GNP growth is not significant, mainly due to the poor efforts of the Korean government and business regarding R&D investment and innovations. National and corporate technology strategies have also traditionally relied upon imitations, reverse engineering, and direct imports of foreign capital goods and technology. In this sense, we could find that the future engine for economic growth of Korea depends on technological innovation, which relies on knowledge-based factors.