earticle

영어

Total factor productivity means the productivity of factors that contribute to the production of an economy other than those described as a production component in the gross domestic product of a particular economy. This is mainly interpreted as a level of technological efficiency and technological progress and is also used to measure the level of innovation and technological progress at the enterprise level. In recent years, the lack of corporate financial data has improved, leading to a number of studies on the analysis of the total factor productivity of the enterprise unit. However, there have not been many analyses of the difference in total factor productivity by size of a company. In this study, we analyzed the components of growth rate of total factor productivity of manufacturing companies by size using firm financial data provided by Korean Enterprise Data. Stochastic Frontier Analysis(SFA) is employed as a methodology. The growth rate of total factor productivity was compared and analyzed by dividing manufacturing companies into conglomerates, middle market enterprises, small or medium enterprise business, small enterprises. The results of the analysis show that the total factor productivity growth rate was measured differently depending on the size of the entity. The growth rate of total factor productivity was the highest among middle market enterprises, followed by small or medium enterprise business, conglomerates and small enterprises. In terms of business dynamics, it shows that small and medium-sized companies, which are capable of creative challenges based on flexibility rather than rigid conglomerates or high-risk small business owners, will play an important role in boosting overall productivity and, by extension, developing the national economy. Looking at the total component productivity growth component, the technology progress rate was positive for all sizes of manufacturing companies, and the change in technology efficiency was negative except for medium-sized businesses. This can be said to be a deepening technology gap in Korean manufacturing companies.