Yoonsoo Lee, a professor of economics at Sogang University in Korea, will examine the structural changes in the retail industry in Korea (e.g., modernization of retail sector and diffusion of e-commerce) and the extent to which such business-level dynamics explain productivity growth. The Korean manufacturing sector has undergone active structural transformation in the past few decades. In particular, the composition of core manufacturing products has changed over time. In the 1970s, textiles, which are used to produce fabric, clothes, apparel and shoes, were the main product. Over time, the value-added shares have shifted toward electronics, ships and cars. Analyzing plant-level microdata, Lee documents the patterns of entry, exit, job creation and destruction, and the growth of young businesses during the industrial shift. This industrial shift involved active job reallocations, as well as the entry and exit of businesses.