Download or read book Three Essays on Industrial Policy Income Inequality and Economic Development A Case Study of South Korea written by Chul Kyoo Joseph Jung and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the relationship between the state's intervention of a different nature - industrial policy and pro-competitive reforms - and income inequality dynamics, using the Korea's heavy and chemical industry promotion during the 1970s and the pro-competitive reforms (1998-2000) as a case study. Chapter 2 focuses on the HCI promotion period (1973-1979) and investigates the impact of the state's selective industrial policy on sectoral economy, income distribution, and sectoral capacity utilization. The study finds that while industrial policy has a positive effect on capacity utilization in both targeted and non-targeted sectors, increased market power of firms in targeted industries significantly reduces the effectiveness of the state's intervention. The study also shows that the industrial policy regime is vulnerable to external shocks, such as an oil price shock. These negative effects can lead the economy to stagnation and thus excess capacity problems due to the reduced effective demand and over-investment in targeted sectors. Chapter 3 examines the association between heavy and chemical industry (HCI) promotion drive (1973-1979) and arguably the first income inequality hike in the history of Korea's economic development. Using an agent-based model (ABM) in which aggregate events emerge from the rich interactions of heterogeneous agents in the markets, this chapter shows how industrial policy that favours particular firms or industry sectors generates income inequality as well as a highly skewed income distribution among different income groups. The study highlights income inequality dynamics with special reference to the effect of preferential interest rates and discriminated access to credit markets among firms. The simulation shows the preferential interest rates for large firms in terms of asset size give a major impetus to the dramatic income inequality spike, compared to that of baseline regime (in the absence of preferential rate). Chapter 4 focuses on the impact of pro-competitive reforms on the market power and labour share of firms' value added during financial crises, using Korean firm-level data from 1990 to 2010 and difference-in-differences(DiD) estimation strategy. One of major findings is that surprisingly, the market power of top 30 chaebols was strengthened by pro-competitive reforms given that the reforms aimed to reduce excessive market power of high-ranking chaebols, and there was a significant decline in overall labour share of value added and an increase in the profit share of these large enterprises. The study argues that these outcomes are due to the pro-competitive reforms being primarily business-friendly and focused on chaebol restructuring, with relatively less attention devoted to labour-friendly policies. The study highlights the need for policymakers to consider the potential trade-offs between pro-competitive reforms and their impact on labour market outcomes.
Download or read book South Korea s Industrial Development Since the Early 1960s written by Sang-Woo Nam and published by Emirates Center for Strategic Studies and Research. This book was released on 2020-02-12 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper examines the remarkable growth of the South Korean economy from the early 1960s to the early 2000s. This paper provides an overview of South Korea’s industrial development process, with a particular emphasis on the heavy and chemical industries’ drive in the 1970s and the impact of educational expansion and investment on technological capabilities. The paper shows how this economic growth was primarily due to an export- oriented industrialization strategy and consistent upgrades to industrial infrastructure and systems to remain competitive in the global market. One of the most important policies pursued by the government was the development of the country's human potential. The paper argues that without this investment, it would have been impossible for South Korea to emerge as one of the most innovative economies in the world. These achievements are attributable to the vision of the political leadership, a supportive government, the hard work of entrepreneurs and others who contributed their valuable human resources. It also examines the 1997 foreign exchange crisis, its causes, and impact on South Korea, as well as the lessons learned, and new policies enacted in its aftermath. The rapid build-up of industrial capabilities was the result of a substantial reduction in investment risks with comprehensive government support for financing, infrastructure, technology and manpower development. However, this also made South Korea's large multi-national industrial companies (chaebols) reckless in fiscal policies. Furthermore, a concentration of economic power and chaebol's putting family interests first — remains a cause of serious socio-political tension in South Korea. The paper concludes that South Korea’s industrial development since the early 1960s include: strong political leadership with vision and a strong commitment to economic development; industrial policy with a focus on promoting heavy and chemical industries; state-chaebol development partnership; and huge investment in human capital and technological capabilities.
Download or read book Income Inequality in Korea written by Chong-Bum An and published by BRILL. This book was released on 2020-05-11 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In the early 1990s, South Korea was showcased as a country that had combined extraordinary economic growth with a narrowing of income distribution, achieving remarkably low rates of unemployment and poverty. In the years following the financial crisis of 1997–1998, however, these rates ballooned to pre-crisis levels, giving rise to the perception that the gap between the rich and the poor in Korea had once again widened. Income Inequality in Korea explores the relationship between economic growth and social developments in Korea over the last three decades. Analyzing the forces behind the equalizing trends in the 1980s and early 1990s, and the deterioration evident in the post-crisis years, Chong-Bum An and Barry Bosworth investigate the macroeconomic conditions, gains in educational attainment, demographic changes and conditions in labor markets, and social welfare policies that have contributed to the evolution of income inequality over time. The authors also raise fundamental questions about whether the pre-crisis pattern of combining strong economic growth with improving equality can be restored, as well as how government policies might be designed to promote that objective. The book concludes with a discussion of some proposals for improving the efficacy of redistributive policies in Korea."
Download or read book Developmental Transformation in South Korea written by Moon-Gi Suh and published by Praeger. This book was released on 1998-09-24 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: South Korea's path toward a higher quality of life has been a dynamic process, Suh shows, shaped by historical contingencies, some immutable logic of capitalist development, and a dialectical relationship between the state and Korean civil society. Debunking the illusion of democracy and myths of self-regulating capitalism in South Korea, Suh shows that a growth machine is not a panacea for the development of human beings and their quality of life. If instead the raison d'etre of quality of life depended upon a robust civil society operating under fair rules of the game by the state, the developmental road would be more promising. Suh seeks to test the hypothesis that the rising tide of economic growth will raise all boats in the Korean sea, remapping its structural pressure points which have been submerged at high tide. Given the high levels of economic growth generated by state intervention, any demand of distributive justice necessitates egailitarian reforms. As Suh shows, the present South Korean situation goes straight to the heart of theoretical questions about the enduring structures of capitalism, and its promise to improve average living standards and to link the redistribution of economic rewards to enhanced economic performance of the system as a whole. South Korea's path to quality of life has been a dynamic process, Suh shows, determined by historical contingencies, with some immutable logic of capitalist development, and a dialectical relationship between the state and Korean civil society. A study of particular interest to scholars, researchers, and policy makers concerned with political economy and social-economic development and East Asian Studies.
Download or read book Capital labor Relations and Economic Development written by Jong-il You and published by . This book was released on 1990 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Causes and Consequences of Income Inequality written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2015-06-15 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.
Download or read book The Debate on South Korea s Industrial Policy Revisited written by Park Sungyeon and published by LAP Lambert Academic Publishing. This book was released on 2015-07-13 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Comprehending the East Asian Miracle has been a subject of heated major debate topic in development economics. And Korea was recognized as having one of the most pro-active state interventions in industrial policy and the debate on the performance of industrial policy has not been settled yet. This book discusses the political economy of industrial policy over decades and the changes in conventional thinking in the World Bank on industrial policy. By reviewing the recent industrial policy debate on comparative advantage strategy in Korea by Justin Yifu Lin and Ha-Joon Chang this book assesses the economic theory of comparative advantage and its work in Korean industrial policy.This book is for those who are interested in economic development from a historical perspective and different economic theories that have shaped our world economy for a long time.
Download or read book Industrial Development and Regional Inequality written by Jin Hwan Oh and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines industrial development from regional perspectives. It is composed of three parts: spatial adaptation of the Murphy, Shleifer, and Vishny (MSV) Model, application of the model to North Korea's Kaesong Industrial Complex, and an analysis of regional inequality of South Korea. Chapter 1 uses a combination of methods from economic development and economic geography. Departing from the MSV Model that views the poverty trap and industrialization as two Nash equilibria, this paper suggests the possibility of partial industrialization as equilibrium. In the beginning of an agglomeration, participating firms in a certain area may observe external economies with a decreasing fixed cost and rising productivity. However, once the number of firms exceeds a certain threshold of agglomeration capacity, the region will experience various congestion problems that may block further development and it will get stuck in a state of partial industrialization. Nevertheles, by Critical Minimum Effort, an economy may get out of this partial industrialization and reach the status of full industrialization as long as it overcomes congestion problems, as has been true for Mexico City, and Upper Silesia in Poland, and Seoul in Korea. Chapter 2 again uses the MSV Model to suggest a possibility for development in the Kaesong area of North Korea. More specifically, this paper deals with the effect of the Kaesong Industrial Complex, where South Korean technology and North Korean labor are combined. Using the MSV Model, this paper predicts that if there is a sustained effort to maintain the momentum of the Kaesong Industrial Complex, then this will have large spillover effects in the entire region, resulting in a big push which breaks the poverty trap and leads to full industrialization. These two chapters focus on the developments of certain regions in themselves. However, development of various regions can be viewed in comparative terms, in which case regional inequality becomes an important issue. Against this backdrop, Chapter 3 analyzes the pattern of inter-regional inequality by comparing the per capita GDPs of 15 South Korean provinces. Using Theil's T Index, this research analyzes increasing or decreasing trend of regional inequality in South Korea, and then, decomposes the country into two different categories (Honam and non-Honam, Gangwon and non-Gangwon, urban and rural) and looks into the inequalities between the groups. Also, in investigating possible factors that may affect regional inequality, this research finds that trade openness, physical capital, and human capital are the three main factors involved and that a certain coordinated investment is needed to minimize regional inequality of the country, without compromising on development.
Download or read book A Study of the Dynamics of Economic Development written by Dai Seok Choi and published by . This book was released on 1993 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The East Asian Development Experience written by Ha-Joon Chang and published by Zed Books. This book was released on 2006 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt: East Asia's development experience, at least until its crisis in 1997, has been a source of hope for other countries in the South. And in modern economic theory, it has been at the centre of the debate about how the role of the state relates to processes of intentional economic progress.
Download or read book Economic Development and Wage Inequality in South Korea written by Joung Woo Lee and published by . This book was released on 1983 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Changes by Competition written by Hyeong-Ki Kwon and published by Oxford University Press, USA. This book was released on 2021 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: By historically tracing Korean capitalism and comparing it with other economies, this book examines prevalent theories including neoliberalism, the developmental state, and institutionalism, and proposes a theoretical alternative.
Download or read book An Examination of the Relationship Between Economic Growth and Income Distribution in South Korea written by Gyu-Won Kim and published by . This book was released on 1984 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Growth Low Income and Housing in South Korea written by Kim Woo-Jin and published by Springer. This book was released on 1997-01-12 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt: '...a wide-ranging, scholarly and humane book which should be read by anyone seriously interested in this country.' - David Donnison From the devastation of the Korean war, there emerged one of the most dynamic, rapidly growing economies the world has ever seen. Starting from a concern about the housing of people struggling to survive on low incomes in the cities of South Korea, Kim Woo-Jin throws light upon the whole development of Korean society since the civil war. He argues that housing has played a central part in both the development of the economy and its more recent slowdown. In the future, housing policies may play their part in resisting the destructive forces that the probable reunification of North and South will bring and recreate hope for the future.
Download or read book Dissertation Abstracts International written by and published by . This book was released on 2009 with total page 668 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Development in a Globalized Environment written by Henry Y. Wan Jr. and published by Springer Science & Business Media. This book was released on 2011-06-28 with total page 407 pages. Available in PDF, EPUB and Kindle. Book excerpt: Is the East Asian growth record replicable today? This book answers: yes. It places the common East Asian theme in the theoretic context of product cycles, globalization and convergence and the historical perspective of the "German Miracle" after World War II, also the more recent Irish growth; it identifies the effective policies for sustained, rapid growth by structured comparisons among different economies; it evaluates the strengths and weaknesses of the alternative policy packages of Korea, Taiwan, Hong Kong, and Singapore, in the light of such recent events like global trend for liberalization, and the Crises of 1997 and 2001. Economic Development in a Globalized Environment also scrutinizes the major debates in development economics, using documented cases, and analytic reasoning for support.
Download or read book Industrial Policy and Industrialization in South Korea 1961 1982 written by Kwan S. Kim and published by . This book was released on 1985 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt:
