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Total Factor Productivity of Chinese Listed Firms and Catching up with Korean Listed Firms
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- Authors
- Issue Date
- 2012-04
- Citation
- Seoul Journal of Economics, Vol.25 No.2, pp. 153-175
- Keywords
- Productivity ; Catch-up ; Chinese firms ; Korean firms ; PPP ; ICPA code
- Abstract
- In this paper, we measured the total factor productivity ( TFP) of
all Chinese publicly listed firms by micro-level, that is, by industry
and firm levels, from 1999 to 2005. Financial data from the China
Stock Market (CSMAR) database were used and capital (K), labor ( L),
and material (M) were employed as input factors. Chinas TFP showed
some increase but remained relatively stagnant, mainly because of
the low TFP of big firms, which could potentially drive the countrys
overall productivity. We used four patterns of catch-up method (i.e.,
overtaking, convergence, slow catch-up, and reverse catch-up) developed
by Jung and Lee (2010) to classify the catch-up patterns
present in Chinese and Korean manufacturing industries. Two labor
input methods, man hour and wage, were adopted for this purpose.
The overall TFP catch-up level depended on the different labor input
methods. Using man hour as labor input, no catch-up occurred in
the overall industry level. Only slow catch-up and reverse catch-up
manifested, indicating a huge gap between the overall industry TFPs
of the two countries. Meanwhile, using wage as labor input, all of the
four catch-up patterns occurred. The apparel industry particularly
showed an overtaking, and four industries, namely, electrical machinery,
textile mill products, instruments, and petroleum and coal
products, showed a convergence pattern. The catch-up level of
Chinese manufacturing firms approached that of Korean firms when
wage was used as labor input.
- ISSN
- 1225-0279
- Language
- English
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