Estimates of Labor and Total Factor Productivity by 72 Industries in Korea (1970–2003)

In recent years, especially since the 1997 economic crisis in the East Asian countries including Korea, considerable changes have taken place in the Korean economy, such as investment stagnation (see e.g. Pyo (2006) Pyo and Ha (2005)), changes in production input patterns, and so on. One of the most important changes is the demand for high productivity, which would compensate the recent slowdowns of growth rates in capital and labor inputs. As Krugman (1994), Young (1994), and Lau and Kim (1994) showed, the East Asian economic miracle may be summarized as `input-led’ growth. Korea was no exception in this respect of growth pattern. 