Working Paper No. 03-02

R&D, Trade, and Productivity Growth in Korean Manufacturing
Taegi Kim and Changsuh Park
January 2003

ABSTRACT

This paper investigates the effects of both R&D spillovers and trade patterns on productivity in Korean manufacturing, using industry-level data. Our results show that domestic and foreign R&D capital stocks have played an important role in productivity growth of Korean manufacturing over the period 1976-96, and that foreign R&D capital has had more effect than domestic R&D in improving the total factor productivity of Korean manufacturing. Moreover, productivity is greater in export industries and in the more opening industries, and the effects of foreign R&D capital are greater in the industries with large import shares or large intra-industry trade shares.

JEL classification: F10; O32; O47

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