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An Analysis of the Productivity and Convergence for the Manufacturing Sector in the DaeGu and KyungBuk Regions

  • Journal of Regional Studies and Development
  • Abbr : JRSD
  • 2014, 23(1), pp.91-113
  • Publisher : Institute for Poverty Alleviation and International Development: IPAID
  • Research Area : Social Science > Area Studies > Regional Studies in general > Comparative / Statistical Regional Studies

Chuhwan Park 1

1영남대학교

Accredited

ABSTRACT

In this paper, we analysed the absolute and conditional convergencyhypothesis and the determinants of productivity in manufacturing industries from2000 to 2009 with DaeGu and KyungBuk regions (DaeGu, KyungBuk) by usingpanel analysis. In terms of convergency hypothesis test, DaeGu and KyungBukreject the null hypothesis (H0) of the absolute convergency & Conditionalhypothesis implying the manufacturing industry's productivity in both of regions isconverging to the steady-state equilibrium. In addition, the results of thedeterminants of the labor productivity in manufacturing industry show that humancapital does affect the labor productivity in DaeGu but does not affect laborproductivity in KyungBuk Province. For both regions capital and location variablesaffect labor productivity significantly. Hence, for the total factor productivity, thegovernment has to revise the balanced regional development policy in order todevelop regional manufacturing industries with R&D activities.

Citation status

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