Multifactor Productivity in Koreaand an International Comparison: Data and Productivity Estimates of the Korea Industrial Productivity Database

The purpose of our study is to identify sources of economic growth for the Republic of Korea, which experienced a financial crisis in 1997 after joining the OECD. We provide estimates of output, input, and productivity based on the newly constructed Korea Industrial Productivity (KIP) database following EU KLEMS project guidelines. We find that Korea's catch-up process with industrial nations during its period of late industrialization has been predominantly input-led and manufacturing-based. However, following the financial crisis in December1997, the Korean economy growth seems to have shifted to productivity-led growth. However, lower productivity in the service industries seems to work against a renewed sustainable growth path.