Productivity and Employment in a Developing Country: Evidence from Republic of Korea
Kim, Sangho; Lim, Hyunjoon; Park, Donghyun | June 2008
Abstract
The paper empirically investigates the relationship between productivity and employment in Republic of Korea using structural vector autoregression (VAR) models. Productivity-enhancing technology shocks significantly increase hours worked, which lends support to the real business cycle theory. The results show that technology shocks can explain most elements of a business cycle both in the short and long run. On the other hand, demand shocks can only explain price fluctuations. The evidence thus suggests that Korean policymakers should give higher priority to supply-side policies that promote technological progress and innovation.
Citation
Kim, Sangho; Lim, Hyunjoon; Park, Donghyun. 2008. Productivity and Employment in a Developing Country: Evidence from Republic of Korea. © Asian Development Bank. http://hdl.handle.net/11540/1772. License: CC BY 3.0 IGO.ISSN
1655-5252
Keywords
Commerce and Industry
Intra-Industry Trade
Large Scale Industry
Labor
Technical Evaluation
Results-Based Monitoring And Evaluation
Performance Evaluation
Industrialization
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Citable URI
http://hdl.handle.net/11540/1772Metadata
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