• KDI Journal of Economic Policy
• /
• v.45 no.1
• /
• pp.1-32
• /
• 2023

Growth of the Korean economy has been sluggish, and this situation is more pronounced in the service sector. We argue that capital misallocation, especially in the service sector, could contribute to this slowdown. Utilizing firm and sectoral level data, first we assess the rising dispersion of the marginal revenue product of capital (MRPK) driven by the service sector. This could represent a widening misallocation of capital. Furthermore, a panel regression shows that within-sector misallocations at the sectoral level are closely correlated with the lower growth rate of sectoral real value added. Again, this is mainly observed in the service sector, but not in the manufacturing sector. Misallocations of other resources, labor and the intermediate inputs do not stand out.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.9
• /
• pp.191-200
• /
• 2020

This research paper examines the causal relationship between India's economic growth and sectoral contribution to Gross Domestic Product (GDP) and vice versa, in the short-run and long-run, over a 10 years time period. Johansen's method of cointegration is used to study the cointegration between the sectoral contributions to Indian GDP vis-à-vis India's economic growth. Further, the route of interconnection between economic growth and sectoral contribution is tested by using Vector Auto Regression (VAR) model. Special attention was given for investigating impulse responses of economic growth depending on the innovations in sectoral contribution using time-series data from 1960 to 2015. This paper highlighted a dynamic co-relationship among industrial sector contribution and agricultural sector contribution and economic development. In the long run, one percent change in industrial sector contribution causes an increase of 3.42 percent in the economic growth and an increase of 1.12 percent in the primary sector contribution, while in the short run industrial and service sector contributions showed significant impact on economic development and agriculture sector. The changing composition of sector contribution is going to be an important activity for the policymakers to monitor and control where the technology and integration of sectors play a significant role in economic development.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.4
• /
• pp.11-19
• /
• 2021

This study aims to analyze the causality relationship between sectoral stock markets (agricultural, financial, industrial, and mining sectors) and economic growth in the short and long term as well as to analyze whether it has similar types or not. The data used is quarterly time-series data (first quarter 2009 to fourth 2019). To determine the causality relationship, this study conducts a variable and multivariate causality test. The results of the varying granger causality test show that there is only a one-way relationship, where the economic growth of the agriculture sector affects its shares. A one-way relationship also occurs in stocks of the industrial sector, which has an influence on economic growth. The multivariate causality test shows that the economic growth of the agricultural sector has a two-way causality relationship, and it also exists between the industrial sector and the financial sector stock markets. The two-way causality relationship between the stock market and sectoral economic growth is a convergence towards long-term equilibrium. The findings of this study suggest that the government through the Financial Services Authority and the Indonesia Stock Exchange have to maintain stability in the stock market as a supporter of the national economy.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.12
• /
• pp.85-94
• /
• 2021

Infrastructure capacities are essential elements and one of the sustainable lines to drive economic growth. Infrastructure development, both physical and social, is vital to sector-wise economic development. However, there is limited evidence of how infrastructure development in certain sectors benefits the economy as a whole. This study explains the relationships between infrastructure and economic growth in selected middle-income Asian countries, highlighting the essential criteria to benefit from both physical and social infrastructure, as well as sectoral (agriculture, industry, and services) economic output. The research uses the data from 1990 to 2020 for empirical estimations. The study used Levin, Lin, & Chu test, ADF- Fischer chi- Square, and PP- Fischer Chi-Square to test unit root and to observe the stationary nature of the panel. Padroni and Kao cointegration is applied to check the cointegration among different panes. A Fully Modified OLS was employed for checking the association between physical and social infrastructure and economic growth. Results show that physical and social infrastructure negatively impact sectoral output in Asia's middle-income countries. Apart from infrastructure the per capita GDP growth, tax to GDP ratio, and population growth shows a simultaneous relation between infrastructure and sectoral economic growth.

• Journal of Korean Society for Atmospheric Environment
• /
• v.28 no.4
• /
• pp.466-476
• /
• 2012

This study calculated monthly and sectoral (for industry, energy industry, transport, residential, commercial and public sectors) greenhouse gas (GHG) emissions of Seoul, Korea from 1999 until 2009 with following the IPCC 2006 Guideline for National Greenhouse Gas Inventories through an analysis on available monthly data of fossil fuel and electricity consumption for the period. The time series analysis showed that GHG emissions had significant cyclical pattern season by season with the highest peak in August and the lowest peak in January throughout the period. The analysis on monthly and sectoral energy consumption showed that residential, commercial and public sectors had emitted about 65% of total GHG emissions of Seoul and had consumed more energy in winter for heating. About 30% GHG of Seoul was emitted from transport sector but its monthly energy consumption showed irregular pattern and it consumed 80% petroleum (in 2009) of Seoul. Hopefully together with further study on this subject, it is expected that this study can be used as basic data for various research regarding Greenhouse gas baseline emission, energy consumption pattern and estimation for future GHG emission of Seoul.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.10
• /
• pp.249-257
• /
• 2021

Industrial agglomeration policy is a strategy that is expected to accelerate economic growth to transform an impoverished region into a prosperous one. However, industrial agglomeration also has the potential to exacerbate development inequality due to the concentration of economic development activities in certain areas. Therefore, this study aims to investigate what strategies are best to minimize the adverse effects of industrial agglomeration. This study uses econometric analysis with panel data covering 38 districts/cities in East Java during the 2011-2019 period. The results showed that the combination of industrial agglomeration policies coupled with accelerated sectoral growth, hard infrastructure development, and soft infrastructure provided the best policy outcome, improving regional inequality and accelerating economic growth in East Java. Based on the analysis, we find that East Java's economic growth characteristics are convergent but relatively long. Therefore, the East Java economic development policy during 2010-2019 should be reviewed due to the relatively long convergence period. Furthermore, this study also found that industrial agglomeration slows down the convergence and economic growth of East Java. In the future, the deployment of Industrial Development Centers (PPI) outside the existing eight districts/cities is needed to accelerate the spread of economic activity in East Java.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.2
• /
• pp.809-820
• /
• 2021

The study aimed to investigate the impact of sectoral bank credit facilities provided by commercial banks on the non-oil economic growth in Saudi Arabia. Bank credit facilities are given for nine economic sectors: agriculture, manufacturing, mining, electricity and water, health services, construction, wholesale and retail trade, transportation and communications, services, and finance sector. The study employs annual data from 1970 to 2019. The study employs the Autoregressive Distributed Lag (ARDL) approach to identify the long-run and short-run dynamics relationships among the variables. The main results reveal that the overall impact of total bank credit has a significant and positive effect on non-oil economic growth in KSA. The results revealed that the effect of bank credit on the non-oil GDP growth in the short and long run was uneven. The study finds that all sectors have a positive and significant impact in the long run, except for the agricultural and mining sectors. Likewise, all sectors have a positive and significant impact in the short run, except for construction, finance, services, and transportation & communications. As a result, bank credit facilities in different sectors have played an important role in enhancing the non-oil economic growth in the KSA.

• Proceedings of the Technology Innovation Conference
• /
• 2001.06a
• /
• pp.157-174
• /
• 2001

• Journal of Technology Innovation
• /
• v.25 no.3
• /
• pp.115-154
• /
• 2017

This article offers a review of the major literature about sectoral innovation studies of Korea and its implications over the past 30 years. The literature on the sectoral innovation studies in Korea has focused on analysing successful technological catch-up from an evolutionary perspective and most of research has centered on the issues about entry strategies, learning mechanisms. Recently "Emerging economies" like Korea in the 2000s face major challenges as they make a transition from (a) a phase of economic development characterised by 'catching up' with the global technological frontier, involving technological "imitation", to (b) a phase of continuing development based on the development of new knowledge for globally leading (post catch-up) product and process innovation. This paper reviews those bodies of literature of patterns of sectoral innovation, technological capability accumulation and catch-up process, catch-up innovation and institutions, and patterns of growth dynamics. Finally, given the importance of sectoral innovation studies, we suggest that industrial upgrading, transition towards leadership, dark side of catch-up issues are needed for future research directions.

• East Asian Economic Review
• /
• v.23 no.3
• /
• pp.261-284
• /
• 2019

This paper explores the ramifications of international outsourcing on unemployment, income distribution and welfare, which is an important but yet unresolved issue. Using the well-known Harris-Todaro (1970) model of sector-specific unemployment, it shows that the effects of outsourcing on employment, income-distribution and welfare depend on the sector in which the outsourcing occurs, whereby sectoral factor intensities, unemployment-outsourcing response and the dynamic stability condition play crucial roles. In particular, outsourcing in the manufacturing (primary) sector widens (narrows) income inequality by increasing (decreasing) the sectoral wage gap and raising (not affecting) the rental income of the capital owners in the economy. Moreover, outsourcing in the manufacturing (primary) sector can be welfare-decreasing (is always welfare-increasing) due to its negative (positive) employment effect mitigating (reinforcing) the primary gains from the outsourcing.