KIM Sangho
   Department   Ritsumeikan Asia Pacific University  College of Asia Pacific Studies
   Position   Professor
Language English
Publication Date 1999/07
Type Research paper (Academic/Professional Journal)
Peer Review Peer reviewed
Title Finance, Production Efficiency, and Growth: Evidence from the Korean Manufacturing Industries
Contribution Type Corresponding
Journal Seould Journal of Economics
Volume, Issue, Page 12(2),pp.127-141
Author and coauthor J. Koo
Details Numerous studies focus on the development of financial market as a driving force in economic growth. We find that the provision of sufficient financial services enhances the production efficiency, and thereby promoting economic growth. Applying a stochastic frontier production function approach to the panel data from Korean regional manufacturing industry, we show that an increase in financial services is associated with the reduction in technical inefficiency. It suggests that the mature financial market works as a lubricant in production and that the supply of financial services is essential to economic growth..