Factors Affecting the Labor Productivity of the Food Manufacturing Industry: The Case of South Korea

Yong Sik Roh, Kwon-Sik Kim, Kwang-Hoon Lee

Abstract

The role and location of food manufacturers are crucial to regional economic sustainability and solving problems related to local employment. This study aims to create a foundation for future regional economic and alternative governmental policies by analyzing the factors that influence food manufacturing productivity in South Korea and reassessing their efficiency in the agricultural industry. This study uses a functional formula to select variables based on food manufacturer data and regional accomplishments. It then applies quantile regression analysis to measure the effects of labor productivity on food manufacturers at a regional level and prevent sample bias. The analysis results show that the impact of corporate elements is greater when the company is larger and permanent positions are more prevalent. Regarding regional characteristics, the horizontal link between industries, spatial agglomeration, and national government financing is influential, along with the local government financing policy. While little research has been conducted on the growth of Korean food manufacturers based on the unit of region, the significance of this study is that it focuses on various connections and agglomeration effects at the regional level and addresses the influence of regional characteristics. Based on the unit of region, this study identifies the factors that affect the labor productivity of food manufacturers while analyzing their effects. The scientific novelty of this paper lies in its analysis of the factors that influence food manufacturing productivity in South Korea and reassessment of their efficiency in the agricultural industry. This approach provides new insights into the growth of Korean food manufacturers based on the unit of region, given that the food manufacturing industry is closely related to the sustainability of the regional economy, the settlement of social issues, the protection of agriculture and farming areas, the fostering of small and medium-sized firms, and balanced regional development.

 

Keywords: food manufacturers, value-added productivity of labor, spatial agglomeration, horizontal link between industries, quantile regression.

 

DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.61.11


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