Our objective is to analyze TFPC, TP, TEC, and SEC within the framework of the Stochastic Frontier Production Function using the Korean Defense Industrial data covering the period 2000-2008. The results indicate that (1) The effects of TEC and TP on T...
Our objective is to analyze TFPC, TP, TEC, and SEC within the framework of the Stochastic Frontier Production Function using the Korean Defense Industrial data covering the period 2000-2008. The results indicate that (1) The effects of TEC and TP on TFPC are larger than SEC, (2) The values of TP in Defense Industry are lower than those in Civilian Industry; (3)Technologically advanced area such as an aerospace industry showed high level of TEC and the values of TEC in Civilian Industry are negative; (4) RS of Defense Industry is decreasing and the elasticities of output with respect to capital are high. These results imply that the technological progress of the defense industry that requires high-tech may induce localization and the increased capital through finding a new foreign markets may increase total factor productivity.