earticle

영어

This paper establishes the empirical model based on cost-based input share, estimates Solow’s residual in the two tourism service industries which are wholesaleㆍretail and foods ㆍlodging for Kangwon and Jeju Provinces over the period 1985:1-2011:4, and analyzes the cyclicality of measured Solow’s residual. The empirical results are summarized as the followings. First, the annual growth rates of Solow’s residual were estimated to be 3.57% in wholesaleㆍretail and 1.41% in foodsㆍlodging for Kangwon Province. In Jeju Province the rates showed 4.71% in wholesaleㆍretail and 2.46% in foodsㆍlodging higher than those in Kangwon Province. Second, the correlation coefficients with the HP-filtered GDP showed the Solow’s residuals in the both industries for Kangwon and Jeju to be procyclical. Third, The comparison of productivity growth rate with real wage rate leads us to the conclusion that real wages have not been increased as much as the productivity growth rate has increased in the tourism service industries for both provinces over the sample period.