The Impact of Introducing Land into

Korean capital services measures

Taehyoung CHO

( unclecho@bok.or.kr )

National Balance Sheet Team

Economic Statistics Department

OECD Productivity Workshop

( Paris, November 5~6, 2012 )

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I. BOK’s Korean capital measurement program

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I. BOK’s Korean capital measurement program

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I. BOK’s Korean capital measurement program

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I. BOK’s Korean capital measurement program

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I. BOK’s Korean capital measurement program

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I. BOK’s Korean capital measurement program

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I. BOK’s Korean capital measurement program

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I. BOK’s Korean capital measurement program

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I. BOK’s Korean capital measurement program

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Ⅱ. Results of capital estimates

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Ⅱ. Results of capital estimates

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Ⅱ. Results of capital estimates

US CANADA JAPAN KOREA

δ T DBR δ T DBR δ T DBR δ T DBR

Building and construction 2.2% 44.6 0.91 9.1% 28.7 2.25 12.6% 24.6 3.02 3.2% 46.2 1.39

ㅇDwellings (Japan: owned by firms) 1.3% 72.5 0.91 5.5% 39.1 2.15 10.5% 33.3 3.49 3.2% 46.0 1.46

ㅇPlants for manufacturing 3.0% 31.5 0.94 8.9% 26.6 2.37 10.7% 31.0 3.32 4.0% 38.7 1.53

ㅇWarehouses 2.2% 40.0 0.89 8.0% 29.8 2.36 9.0% 27.4 2.47

3.4% 43.3 1.47 ㅇOffice buildings 3.1% 34.0 0.90 6.8% 31.0 2.07 10.3% 31.7 3.27

ㅇHotels, stores and restaurants 2.7% 33.0 0.90 7.2% 29.9 2.09 12.8% 24.5 3.23

ㅇOther buildings 2.1% 44.0 0.91 9.0% 28.0 2.21 10.1% 29.4 2.96 2.7% 48.7 1.30

ㅇElectric power plants 2.1% 45.0 0.95 6.0% 38.5 2.20 12.2% 23.5 2.87 3.5% 40.0 1.41

ㅇWater suppy and sewage facilities 1.9% 50.0 0.93 11.3% 25.3 2.41 13.4% 24.6 3.30 5.3% 29.9 1.57

ㅇCom. and broadcast. facilities 2.4% 40.0 0.95 12.5% 16.3 2.06 10.4% 13.3 1.38 5.2% 30.0 1.57

ㅇOther construction 2.1% 46.1 0.92 9.3% 28.5 2.27 15.2% 19.6 2.97 2.8% 50.8 1.33

Machinery and Equipment (Private) 13.5% 15.3 1.72 19.7% 15.0 2.65 21.5% 15.3 3.07 17.9% 11.7 1.89

ㅇBuildings accompanying facilities 15.2% 16.3 2.50

ㅇTransport equipment 16.5% 15.1 1.85 16.7% 17.5 2.46 26.6% 13.1 3.33 16.9% 15.8 2.08

ㅇOther machinery and equipment 11.8% 16.2 1.72 19.6% 15.0 2.72 20.1% 16.5 3.14 17.1% 11.2 1.86

ㅇComputers and copy machines 25.9% 6.8 1.65 46.7% 4.7 2.19 34.4% 7.9 2.71 30.4% 5.4 1.65

ㅇCommunications equipment 13.0% 13.0 1.65 22.0% 10.3 2.26 29.2% 9.9 2.81 24.5% 7.2 1.76

S/W 40.3% 4.3 1.65 40.3% 4.3 1.65 29.6% 6.0 1.78

Mineral exploration 6.0% 16.0 0.90 15.6% 16.0 2.49 7.6% 19.0 1.44

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Ⅱ. Results of capital estimates

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Ⅱ. Results of capital estimates

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Ⅲ. Why and how to introduce land in capital measurement

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Ⅲ. Why and how to introduce land in capital measurement

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Ⅲ. Why and how to introduce land in capital measurement

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Ⅲ. Why and how to introduce land in capital measurement

Series ④ is constructed by combining three data set [ series ① KAB as of

1965, assumed market land value as of 2010, and land price index inflation

rate(%) during 1966~2009 ]

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Ⅲ. Why and how to introduce land in capital measurement

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Ⅳ. The impact of introducing Land

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Ⅳ. The impact of introducing Land

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Ⅳ. The impact of introducing Land

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Ⅳ. The impact of introducing Land

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Ⅴ. Summary

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Ⅴ. Summary

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Ⅴ. Summary

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Ⅴ. Summary

Thank you!