| Abstract: |
Both Korea and Japan are leading exporting countries of advanced manufactured
products, and the competitive and efficient manufacturing activities are
important pillars of the affluence of the two economies. Yet, comparing the
manufacturing sectors of the two countries in the 1990s brings to light a
startling contrast in their performance. Applying the same empirical method to
the analysis of micro-data for Japanese manufacturing firms for 1994-2001 and
Korean manufacturing plants for 1990-98, this paper examines differentials in
Japanese and Korean productivity growth. This paper focuses on the role of
competition in firm dynamics and on the importance of internationalization as
a major determinant of firm performance. |