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Comparative Analysis of Plant Dynamics by Size: Korean Manufacturing

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Abstract

A comparative analysis on Korean manufacturing plants is performed by size of plants and sources of TFP growth are decomposed into entry, exit, and survival effects of plants, focusing on the pre- and post-crisis periods. Additional survival analyses investigate internal and external determinants of the survival of plants. The results indicate that the exit of small- and medium-sized establishments (SMEs) with higher productivity is becoming problematic in the post-crisis period. The improvements in large-scale establishments (LSEs) after the crisis appeared to occur generally in high-technology industrial sectors; SMEs in low-technology industries are suffering from a sluggish market selection process.

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Authors and Affiliations

  1. Korea Energy Economics Institute, Ulsan, South Korea

    Inha Oh

  2. Seoul National University, Seoul, South Korea

    Almas Heshmati & Jeong-Dong Lee

  3. Korea Institute of Science and Technology Evaluation and Planning, Seoul, South Korea

    Chulwoo Baek

Authors
  1. Inha Oh
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  2. Almas Heshmati
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  3. Chulwoo Baek
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  4. Jeong-Dong Lee
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Oh, I., Heshmati, A., Baek, C. et al. Comparative Analysis of Plant Dynamics by Size: Korean Manufacturing. JER 60, 512–538 (2009). https://doi.org/10.1111/j.1468-5876.2009.00470.x

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  • DOI: https://doi.org/10.1111/j.1468-5876.2009.00470.x

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