The Impact of Global Supply Chain Pressures on Industrial Productivity: The Korean Experience

The purpose of this study is to analyze the impact of global supply chain pressures on industrial productivity in South Korea, using quarterly data from 2000 to 2023. To conduct the empirical analysis, the research model was established based on the basic theory of the Cobb-Douglas production function. Before the empirical analysis, a unit root test was performed to verify the stationarity of the data. The results of the unit root test revealed that the industrial production index, the global supply chain pressure index, and labor input were I(1), while capital input was I(0). Subsequently, a cointegration test on the level variables showed that there was no long-term equilibrium relationship between the variables. Therefore, in this study, the I(1) variables were used after first-differencing, while the I(0) variable was used without differencing in the empirical analysis. The results of the empirical analysis indicated that capital input and labor input were statistically significant at the 1% level, with positive signs. On the other hand, while the expected sign for the global supply chain pressure index was observed, it was not statistically significant.