Shigeyuki Abe: This paper analyzes the performance of 37 manufacturing industries by estimating TFP growth. The stochastic frontier production model is used for the estimation with a micro-level panel data set of 70,858 establishments and 773,696 observations from 1995 to 2012. This paper tries to trace upgrading in Korea's industrial structure by examining changes in its growth-leading industries. This paper also examines the reasons why there was resilience in the TFP growth of 21 key manufacturing industries after the two global financial crises. The empirically high and yet steady rate of technical progress was found to be the driving force behind the resilience. A change in the growth-leading industries in 2012 shows an upgrade in the industrial structure with more knowledge-based and high technology-based industries than in 2000 and 2005.
The empirical content of this paper is impressive and the logic is clear and simple. As a discussant, however, I...