콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Direct Investment

Print

Reviving business investment and job creation

Related Document
Frame of Image th. While the service sector contributed significantly to employment, it has shown a noticeable deterioration in the quality of jobs it creates. Investment is a component of aggregate demand and thus has a cyclical influence on output through the multiplier effect. It also affects growth potential of the economy through capital accumulation. Less investment translates into lower economic growth in the long run. According to Okun’s law, employment is positively related with output. Poor job creation is the direct result of stagnant econ o m i c growth. An emerging problem is that employment is not rising in proportion to output, resulting in jobless growth. The past year witnessed a financial crisis and
subsequent decline in economic activity throughout the global economy. The current global economic slump is being compared to the Great Depression of the 1930s. The Korean economy is confronted with another serious challenge that requires both cyclical and structural responses. Investment and employment performance since the financial crisis of 1998 is characterized by lower growth rates, compared with output growth. Figure 1 plots real GDP, facility investment, and e m p l o y m e n t in a log scale for the period 1980~2007. The slope of investment is steeper before the crisis and flattens afterwards, converging toward the slope of GDP. The slope of employment shows a similar change in shape, although it is less discernible than the investment slope. Since the slope of the log


Full Text
Title Reviving business investment and job creation
Similar Titles
Material Type Reports
Author(English)

Youn, Woo-jin

Publisher

[Seoul]:Korea Institute for Industrial Economics & Trade

Date 2009
Journal Title; Vol./Issue KIET Industrial Economic Review:vol. 14(no. 1)
Pages 8
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Direct Investment
Holding KDI School of Public Policy and Management

Resources