Abstract

This paper examines TFP (total factor productivity) growth and economies of scale of Korean fossil-fuel power GENCOs (generation companies) between 2001 and 2012. For this empirical investigation, a panel data econometric approach was employed with specification tests in order to obtain robust results. The findings indicate that an average growth rate of the TFP is 0.33 percent and that GENCOs enjoyed economies of scale for the study period. Based on these results, managerial and industrial implications are provided.