Industry FDI and the Distribution of Plant Productivity: Analysis Using Korean Plant-Level Data

Bo Young Choi; Ju Hyun Pyun

doi:10.1111/deve.12127

Industry FDI and the Distribution of Plant Productivity: Analysis Using Korean Plant-Level Data

Bo Young Choi, Ju Hyun Pyun

School of Economics and Trade

Korea University

Research output: Contribution to journal › Article › peer-review

5 Scopus citations

Abstract

We examine the effects of inward FDI on the distribution of plant total factor productivity. Using Korean manufacturing plant-level data covering 1990–2007, we find that industry FDI had heterogeneous effects on plant productivity and its distribution in terms of industry characteristics, such as industry concentration index and capital intensity. While sectoral FDI drove up productivity more for plants in industries with low concentration, it had negative effects on productivity especially for the least productive plants in industries with high concentration and high capital intensity. Our results also reveal that the positive effect of FDI was greater for exporters than for non-exporters.

Original language	English
Pages (from-to)	105-129
Number of pages	25
Journal	Developing Economies
Volume	55
Issue number	2
DOIs	https://doi.org/10.1111/deve.12127
State	Published - Jun 2017

Keywords

Capital intensity
Industry competition
Inward foreign direct investment
JEL classification: F12, F14
Korean plant-level data
Quantile regression
Total factor productivity

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1111/deve.12127

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title = "Industry FDI and the Distribution of Plant Productivity: Analysis Using Korean Plant-Level Data",

abstract = "We examine the effects of inward FDI on the distribution of plant total factor productivity. Using Korean manufacturing plant-level data covering 1990–2007, we find that industry FDI had heterogeneous effects on plant productivity and its distribution in terms of industry characteristics, such as industry concentration index and capital intensity. While sectoral FDI drove up productivity more for plants in industries with low concentration, it had negative effects on productivity especially for the least productive plants in industries with high concentration and high capital intensity. Our results also reveal that the positive effect of FDI was greater for exporters than for non-exporters.",

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AU - Choi, Bo Young

AU - Pyun, Ju Hyun

PY - 2017/6

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N2 - We examine the effects of inward FDI on the distribution of plant total factor productivity. Using Korean manufacturing plant-level data covering 1990–2007, we find that industry FDI had heterogeneous effects on plant productivity and its distribution in terms of industry characteristics, such as industry concentration index and capital intensity. While sectoral FDI drove up productivity more for plants in industries with low concentration, it had negative effects on productivity especially for the least productive plants in industries with high concentration and high capital intensity. Our results also reveal that the positive effect of FDI was greater for exporters than for non-exporters.

AB - We examine the effects of inward FDI on the distribution of plant total factor productivity. Using Korean manufacturing plant-level data covering 1990–2007, we find that industry FDI had heterogeneous effects on plant productivity and its distribution in terms of industry characteristics, such as industry concentration index and capital intensity. While sectoral FDI drove up productivity more for plants in industries with low concentration, it had negative effects on productivity especially for the least productive plants in industries with high concentration and high capital intensity. Our results also reveal that the positive effect of FDI was greater for exporters than for non-exporters.

KW - Capital intensity

KW - Industry competition

KW - Inward foreign direct investment

KW - JEL classification: F12, F14

KW - Korean plant-level data

KW - Quantile regression

KW - Total factor productivity

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SP - 105

EP - 129

JO - Developing Economies

JF - Developing Economies

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ER -

Industry FDI and the Distribution of Plant Productivity: Analysis Using Korean Plant-Level Data

Abstract

Keywords

UN SDGs

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