Productivity, Efficiency, and Economic Growth in the Asia-Pacific Region

Productivity growth is a keyword for sustainable economic growth in a knowledge-based society. There has been significant methodological development in the literature on productivity and efficiency analysis, e.g. SFA (Stochastic Frontier Analysis) and DEA

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Jeong-Dong Lee • Almas Heshmati (Editors)

Productivity, Efficiency, and Economic Growth in the Asia-Pacific Region

Physica-Verlag A Springer Company

Editors Prof. Jeong-Dong Lee Seoul National University Technology Management, Economics and Policy Program Seoul 151-742 Republic of Korea [email protected]

ISBN 978-3-7908-2071-3

Prof. Almas Heshmati University of Kurdistan Department of Economics and Finance Hawler 30 metri Zanyari Federal Region of Kurdistan Iraq [email protected]

e-ISBN: 978-3-7908-2072-0

DOI: 10.1007/978-3-7908-2072-0 Contributions to Economics ISSN 1431-1933 Library of Congress Control Number: 2008930850 © 2009 Physica-Verlag Heidelberg This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Heidelberg Printed on acid-free paper 9 8 7 6 5 4 3 2 1 springer.com

Acknowledgement

Technology Management, Economics, and Policy Program (TEMEP) of Seoul National University hosted the Asia-Pacific Productivity Conference (APPC) 2006 Seoul. TEMEP is one of the leading institution in the field of technology management and economics in Korea and becomes a hub for interdisciplinary research and education. Productivity and efficiency research is one of the important research missions of TEMEP, which will support further the collaborative research activities in this field. Three programs of TEMEP, Information Technology Policy Program (ITPP), Management of Technology (MOT), and Brain-Korea (BK) sponsored APPC 2006 and this volume. The editors are grateful to Professor Tai-Yoo Kim, the founder of TEMEP, committee members of APPC 2006 Seoul, scientific reviewers for this volume, and all contributing authors. We also thank Mrs. Yun Hee Kim, Mrs. Rhona Davis and Dr. Dianah Ngui for their excellent editorial contribution to make this volume. Seoul National University, Korea University of Kurdistan Hawler, Iraq

Jeong-Dong Lee Almas Heshmati

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Contents

Introduction Productivity, Efficiency, and Economic Growth in the Asia-Pacific Region ............................................................... J.-D. Lee and A. Heshmati

1

Part I Industrial Sector and Firm Level Efficiency and Productivity Analysis 1

2

Factor Hoarding and Productivity: Experience from Indian Manufacturing ...........