콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Macroeconomics

Print

Trade, exchange rate, and agricultural pricing policies in the Republic of Korea (English)

Related Document
Frame of Image
  • Trade, exchange rate, and agricultural pricing policies in the Republic of Korea (English)
  • Moon, Pal-Yong; Kang, Bong-Soon
  • World Bank (WB)


link
Title Trade, exchange rate, and agricultural pricing policies in the Republic of Korea (English)
Similar Titles
Material Type Reports
Author(English)

Moon, Pal-Yong; Kang, Bong-Soon

Publisher

World Bank (WB)

Date 1989
ISBN 0-8213-1211-1
Language English
File Type Link
Subject Economy < Macroeconomics

Abstract

This report discusses government intervention in agricultural prices and how it persisted throughout the period 1960-84 in the Republic of Korea. During that period, the country largely completed its transformation from an agrarian economy to an industrialized one. In 1960, agriculture's share of gross national product (GNP) was 36.5 percent, and agriculture accounted for 60 percent of the country's employment. By 1984, agriculture's share of GNP was only 13.9 percent, and its share of employment had fallen to 25.9 percent. In the mid-1950s, Korea's centralized government concentrated on rebuilding the country, heavily damaged by the 1950-52 conflict. Later in the decade, and on into the 1960s, Korea turned its attention to expansion of industry and trade, and was highly successful. On average, national GNP increased more than 8 percent a year between 1960 and 1984, while the value of exports increased an average 30 percent a year. Initially, the great amount of attention paid to the industrial and trade sectors had negative effects on the incentives for agricultural production. Early in the 1970s, however, various factors caused the government to adopt a more favorable attitude toward the farm sector. Government intervention in agricultural prices had effects on agricultural production, agricultural consumption, foreign exchange earnings, the government's budget, and wages and income in both rural and urban sectors. Those effects are also presented in this report.