The R&D and productivity relationship of Korean listed firms
- Authors
- Heshmati, Almas; Kim, Hyesung
- Issue Date
- 10월-2011
- Publisher
- SPRINGER
- Keywords
- R& D investment; Productivity; Selectivity; Chaebol; Simultaneity; Asian financial crisis
- Citation
- JOURNAL OF PRODUCTIVITY ANALYSIS, v.36, no.2, pp.125 - 142
- Indexed
- SSCI
SCOPUS
- Journal Title
- JOURNAL OF PRODUCTIVITY ANALYSIS
- Volume
- 36
- Number
- 2
- Start Page
- 125
- End Page
- 142
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/111513
- DOI
- 10.1007/s11123-010-0206-y
- ISSN
- 0895-562X
- Abstract
- This study analyzes the relationship between R&D investment and the productivity of Korean R&D-engaged firms. An interdependent chain of equations including the propensity to invest, R&D investment and productivity are estimated in a multi-step procedure accounting for selectivity and simultaneity biases. Using Korean firm level panel data of listed firms from 1986 to 2002, we find four main empirical results. First, there is a two-way causal relationship between R&D investment and productivity for Korean listed firms. Second, Chaebol firms were associated with lower R&D growth as well as lower labor productivity growth in comparison to non-Chaebol firms. Third, there was a substantial reduction in growth rates both in R&D investment and labor productivity in 1997-1998, immediately following the Asian financial crisis. Fourth, considering the positive feedback effect from productivity growth to R&D growth, a decrease in R&D investment growth after the Asian financial crisis should have been harmful by further decreasing productivity growth.
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Collections - College of Life Sciences and Biotechnology > Department of Food and Resource Economics > 1. Journal Articles
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