earticle

영어

This paper attempts to analyze total factor productivity(TFP) growth for Korea's financial and business services industries using a stochastic frontier production approach and to compare the results with the major industrialized countries. In the financial services industry, TFP has increased steadily, but the contribution of technical progress to productivity growth was very lower than those of other countries. TFP in the business services industry has declined remarkably, due to relatively low technical progress and scale effect. Based on the results, to promote Korea's productivity continuously, we should expand institutional infra-structure for allowing sufficient technical progress as well as supply of human resources. And in case of the business services industry, policies to improve the effect of scale of economy and to expand competition-based market's atmosphere should be considered.