An Analysis of Capital Input Adjustments through Capacity Utilization in Korea

An Analysis of Capital Input Adjustments through Capacity Utilization in Korea | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article An Analysis of Capital Input Adjustments through Capacity Utilization in Korea Jaewon Park, Hak Kil Pyo This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6726033/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study utilizes the value-added growth accounting methodology proposed by Fernald (2014) to estimate capital input adjusted for capacity utilization, offering a more precise analysis of changes in capital use within both the manufacturing and non-manufacturing sectors. Existing studies often apply average utilization rates for the aggregated manufacturing sector, failing to reflect industry-specific characteristics. To address this, our research applies industry-specific capacity utilization indices for manufacturing and electricity consumption indices for non-manufacturing, following previous methodologies by Pyo and Song (2014), the Korea Productivity Center (2021), Pyo and Lee (2024), and Pyo et al. (2024). This approach enables clearer identification of varying capacity utilization levels in industries such as the computer, electronic, and optical equipment manufacturing, which includes the semiconductor industry, and the electrical equipment manufacturing sector, which includes secondary battery production. The results show that capital input estimation using industry-specific utilization metrics is more meaningful than using average utilization rates. This refined method contributes to more accurate total factor productivity (TFP) measurement and economic growth analysis, offering valuable implications for future policy design and industry-level competitiveness assessment. JEL Classification: C6 , E2 , O3 Growth Accounting Productivity Capital Input Capacity Utilization Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6726033","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":461515846,"identity":"e4c757c0-dc6b-4047-bb1c-0c4817582630","order_by":0,"name":"Jaewon Park","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAzklEQVRIiWNgGAWjYBACxgYQrrDh4YfwmYnVciZNRrKBWC1gbY1th2wMDhCrhXl287OPM9gO8BifX50mwVBhndhA0IY5x4xnbuC5w2N24+02CYYz6URomZFgzPhA4hlQy9ltEoxth4nRkv6Z8YHBYR7jGSAt/4jSkmPMuCHhMI8Bfy9QSwMxWuacKWaccSCNR+IG72aLhGPpxgS1GM5u38zY+8/Gnr//7MYbH2qsZQlrmQFjSSQwMCQQUg4C8hIwFv8BYtSPglEwCkbBSAQAjIlD5M36n6MAAAAASUVORK5CYII=","orcid":"","institution":"George Mason University","correspondingAuthor":true,"prefix":"","firstName":"Jaewon","middleName":"","lastName":"Park","suffix":""},{"id":461515847,"identity":"13a8a500-bbe6-4dfa-b4f0-348a8e1250cd","order_by":1,"name":"Hak Kil Pyo","email":"","orcid":"","institution":"Seoul National University","correspondingAuthor":false,"prefix":"","firstName":"Hak","middleName":"Kil","lastName":"Pyo","suffix":""}],"badges":[],"createdAt":"2025-05-22 14:38:21","currentVersionCode":1,"declarations":{"humanSubjects":false,"vertebrateSubjects":false,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":false,"humanSubjectConsent":false,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":false,"vertebrateSubjectEthicalGuidelines":false},"doi":"10.21203/rs.3.rs-6726033/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6726033/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":83457880,"identity":"4f77e949-dd39-4c51-baac-aed6da9d369f","added_by":"auto","created_at":"2025-05-26 15:08:57","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":681551,"visible":true,"origin":"","legend":"","description":"","filename":"AnAnalysisofCapitalInputAdjustmentsthroughCapacityUtilizationinKorea.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6726033/v1_covered_282ccaab-4f16-4872-a5db-56d2b475815e.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"An Analysis of Capital Input Adjustments through Capacity Utilization in Korea","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":true,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Growth Accounting, Productivity, Capital Input, Capacity Utilization","lastPublishedDoi":"10.21203/rs.3.rs-6726033/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6726033/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study utilizes the value-added growth accounting methodology proposed by Fernald (2014) to estimate capital input adjusted for capacity utilization, offering a more precise analysis of changes in capital use within both the manufacturing and non-manufacturing sectors. Existing studies often apply average utilization rates for the aggregated manufacturing sector, failing to reflect industry-specific characteristics. To address this, our research applies industry-specific capacity utilization indices for manufacturing and electricity consumption indices for non-manufacturing, following previous methodologies by Pyo and Song (2014), the Korea Productivity Center (2021), Pyo and Lee (2024), and Pyo et al. (2024). This approach enables clearer identification of varying capacity utilization levels in industries such as the computer, electronic, and optical equipment manufacturing, which includes the semiconductor industry, and the electrical equipment manufacturing sector, which includes secondary battery production. The results show that capital input estimation using industry-specific utilization metrics is more meaningful than using average utilization rates. This refined method contributes to more accurate total factor productivity (TFP) measurement and economic growth analysis, offering valuable implications for future policy design and industry-level competitiveness assessment.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eJEL Classification:\u003c/strong\u003e C6 , E2 , O3\u003c/p\u003e","manuscriptTitle":"An Analysis of Capital Input Adjustments through Capacity Utilization in Korea","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-05-26 05:28:55","doi":"10.21203/rs.3.rs-6726033/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"b30a0fa8-83dd-4ad1-804c-6b8c2f0bd025","owner":[],"postedDate":"May 26th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2025-06-06T12:53:29+00:00","versionOfRecord":[],"versionCreatedAt":"2025-05-26 05:28:55","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-6726033","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-6726033","identity":"rs-6726033","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}