earticle

영어

There has been a long-standing interest of developed countries as well as developing countries in the effectiveness and efficiency of government export promotion activities and their role in generating economic growth and jobs. This paper empirically examines effects of export promotion on employment over the period 2005-2008 for Korean listed and non-listed manufacturing firms. The paper employs the panel model of labor demand and controls for simultaneity of the exports and real wages using a two step Tobit-GLS procedure. Our empirical findings are as follows. First we find some evidence for employment effects of export promotion programs to small-medium sized enterprises (SMEs) during the sample period after Korean financial crisis. This suggests that expansion of export promotion programs for SMEs can have positive effects on employment in Korea. Second, both company age and R&D expenditure per worker are positively associated with an increase in employment of SMEs. This implies that such factors could be used as criteria of selecting subsidized firms, which may enhance the employment effect of export promotion programs.