콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy General
Industry and Technology General

Print

Industrial Policy and Economic Development: Korea's Experience

Related Document
Frame of Image pecially in the early phase of economic development. According to Westphal (1990, 41) for instance, “Korea’s government has selectively intervened to affect the allocation of resources among industrial activities.” The government provided direct subsidies including fiscal and financial incentives as well as indirect support like the provision of infrastructure, to promote certain selected industries. The share of manufacturing output by heavy and chemical industries (HCI), which were promoted by the government especially in the 1970s, increased from 23 percent in 1960 to 54 percent in 1980 and to 79 percent in 2002. Although the Korean government provided various kinds of taxation and financial incentives during this period, the current World Trade Organization (WTO) system regulates or even prohibits most governmental provisions or incentives to promote specific industries. Therefore, many of the promotional measures taken by the Korean government during the rapid economic growth period, cannot be used by developing countries now. This paper explains policy measures taken by the Korean government to promote certain industries during its economic development process, analyzes the strengths and weaknesses of Korea’s industrial policy, and provides developing countries with implications for their economic development under the World Trade Organization’s (WTO) system drawn from Korea’s experiences with industrial policy. The paper is structured so that the following section expl


Full Text
Title Industrial Policy and Economic Development: Korea's Experience
Similar Titles
Material Type Articles
Author(English)

Mah, Jai S.

Date 2007
Journal Title; Vol./Issue Journal of Economic Issues (Association for Evolutionary:Mar2007, Vol. 41 Issue 1
Pages 17 p.
Language English
File Type Documents
Original Format pdf
Subject Economy < General
Industry and Technology < General
Holding Business Source Complete

Abstract

The article reports on Korea's government and industrial policy in relation to the country's economic growth and its efforts to promote industry development within the World Trade Organization (WTO) system. A brief history of the industrial policy in Korea is presented and includes the Ministry of Commerce and Industry (MCI) and the National Investment Fund (NIF). The Tax Exemption and Reduction Control Law offered fiscal benefits while export industries received financial advantages. Topics discussed include the World Bank, economic development, WTO regulations, and the transition from Light Industries (LI) to the heavy and chemical industries (HCI).