Abstract
To overcome the rapid decline in the competitive edge of Korean products, a new industrial policy which beefs up firm-specific efficiency of the Jaebul was introduced as of June 1, 1991. To evaluate the effectiveness of this ‘specialization’ policy, which regulates the diversification of the Jaebul, this paper measures the firm-specific efficiency of Korean firms using DEA models. The paper concludes that in 24 among 34 sectors the subsidiaries of the Jaebul are operating more efficiently than independent firms.
Get full access to this article
View all access options for this article.