Korea's Growth Experience and Long-Term Growth Model
This paper analyzes the Republic of Korea's rapid and sustained growth experience for the past six decades from the perspective of the neoclassical growth model (the workhorse model of the World Bank’s Long Term Growth Model (LTGM) project). O...
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2017
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| Online Access: | http://documents.worldbank.org/curated/en/721471510252769303/Koreas-growth-experience-and-long-term-growth-model http://hdl.handle.net/10986/28859 |
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okr-10986-288592021-06-08T14:42:47Z Korea's Growth Experience and Long-Term Growth Model Jeong, Hyeok ECONOMIC GROWTH SUSTAINABLE DEVELOPMENT GROWTH MODEL HUMAN CAPITAL PRODUCTIVITY LABOR MARKET DEMOGRAPHICS This paper analyzes the Republic of Korea's rapid and sustained growth experience for the past six decades from the perspective of the neoclassical growth model (the workhorse model of the World Bank’s Long Term Growth Model (LTGM) project). Overall, the sources of Korea's growth were balanced among labor market and demographic factors, capital investment, human capital accumulation, and productivity growth. However, the main engine of growth evolved sequentially, e.g., labor and human capital factors in the 1960s, capital deepening in the 1970s, and then productivity growth for the following periods. The major sources of sustained growth over six decades were human capital accumulation and productivity growth rather than labor or capital investment. A counterfactual calibration of the model explains Korea's actual growth experience well, and shows why gaps between the model’s predictions and the data arise. This illustrates that an appropriate calibration of a simple neoclassical growth model provides useful lessons and tools for policy makers in developing countries in designing their national development strategies. 2017-11-14T22:15:17Z 2017-11-14T22:15:17Z 2017-11 Working Paper http://documents.worldbank.org/curated/en/721471510252769303/Koreas-growth-experience-and-long-term-growth-model http://hdl.handle.net/10986/28859 English Policy Research Working Paper;No. 8240 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Korea, Republic of |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
ECONOMIC GROWTH SUSTAINABLE DEVELOPMENT GROWTH MODEL HUMAN CAPITAL PRODUCTIVITY LABOR MARKET DEMOGRAPHICS |
| spellingShingle |
ECONOMIC GROWTH SUSTAINABLE DEVELOPMENT GROWTH MODEL HUMAN CAPITAL PRODUCTIVITY LABOR MARKET DEMOGRAPHICS Jeong, Hyeok Korea's Growth Experience and Long-Term Growth Model |
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East Asia and Pacific Korea, Republic of |
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Policy Research Working Paper;No. 8240 |
| description |
This paper analyzes the Republic of
Korea's rapid and sustained growth experience for the
past six decades from the perspective of the neoclassical
growth model (the workhorse model of the World Bank’s Long
Term Growth Model (LTGM) project). Overall, the sources of
Korea's growth were balanced among labor market and
demographic factors, capital investment, human capital
accumulation, and productivity growth. However, the main
engine of growth evolved sequentially, e.g., labor and human
capital factors in the 1960s, capital deepening in the
1970s, and then productivity growth for the following
periods. The major sources of sustained growth over six
decades were human capital accumulation and productivity
growth rather than labor or capital investment. A
counterfactual calibration of the model explains
Korea's actual growth experience well, and shows why
gaps between the model’s predictions and the data arise.
This illustrates that an appropriate calibration of a simple
neoclassical growth model provides useful lessons and tools
for policy makers in developing countries in designing their
national development strategies. |
| format |
Working Paper |
| author |
Jeong, Hyeok |
| author_facet |
Jeong, Hyeok |
| author_sort |
Jeong, Hyeok |
| title |
Korea's Growth Experience and Long-Term Growth Model |
| title_short |
Korea's Growth Experience and Long-Term Growth Model |
| title_full |
Korea's Growth Experience and Long-Term Growth Model |
| title_fullStr |
Korea's Growth Experience and Long-Term Growth Model |
| title_full_unstemmed |
Korea's Growth Experience and Long-Term Growth Model |
| title_sort |
korea's growth experience and long-term growth model |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/721471510252769303/Koreas-growth-experience-and-long-term-growth-model http://hdl.handle.net/10986/28859 |
| _version_ |
1764467888389881856 |