Theory and Empirics of the Institutional Evolution of Economic Development: An Application to Korean Economy

• 발행기관: 서울대학교 경제연구소
• 저자명: Sung-Hee Jwa
• 간행물 정보: 『Seoul Journal of Economics』Seoul Journal of Economics Volume 33 No.2, 163~194쪽, 전체 32쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.05.30

영문 초록

This study empirically applies the theory of institutional requirement for economic development to explain Korea’s modern history of economic development. The study theoretically derives the argument that the economic discrimination (ED) policy regime “rewarding high performance relative to low performance” is the necessary condition for economic development, whereas the economic egalitarianism (EE) policy regime “disregarding the differences of performances” is the sufficient condition for economic stagnation. The paper then describes some details of the institutional evolution of Korean economy for the last 60 years and presents three testable hypotheses for Korea’s development history. 1) Institution-led growth hypothesis: The rise and fall of Korea’s economic growth was respectively led by the ED and EE policy regimes. 2) Corporate-led growth hypothesis: The rise and fall of Korea’s economic growth was led by the rise and fall of the corporate sector growth instigated by the ED and EE policy regimes, respectively; and 3) Political cycle of economic growth: The rise and fall of Korea’s economic growth was led by the political cycle of economization of politics and politicization of economy, respectively. These hypotheses are empirically verified by utilizing a new model of corporate production function. Policy implication is that Korea’s current economic difficulties can only be cured by reversing the current anti-corporate EE policy regime to the corporate-friendly ED policy regime.

목차

I. Introduction

II. New Theory of Institutional Requirement for Economic Development

III. Institutional Interpretation of Korea’s Economic Development

IV. Empirical Analysis on the History of Korea’s Economic Development

V. Concluding Remarks

References

키워드

Economic discrimination (ED) Economic egalitarianism(EE) ED policy regime EE policy regime Institutionled growth Corporate-led growth Corporate production function