콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Trade
Economy Economic Conditions
Economy Economic Administration

Print

How much of South Korea’s growth miracle can be explained by trade policy?

Related Document
Frame of Image
  • How much of South Korea’s growth miracle can be explained by trade policy?
  • Connolly, Michelle; Yi, Kei-Mu
  • Federal Reserve Bank of San Francisco


link
Title How much of South Korea’s growth miracle can be explained by trade policy?
Similar Titles
Material Type Articles
Author(English)

Connolly, Michelle; Yi, Kei-Mu

Publisher

[San Francisco]:Federal Reserve Bank of San Francisco

Date 2008-09
Journal Title; Vol./Issue Working Paper 2008:no. 23
Pages 34
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Economy < Trade
Economy < Economic Conditions
Economy < Economic Administration
Holding Federal Reserve Bank of San Francisco

Abstract

South Korea’s growth miracle has been well documented. A large set of institutional and policy reforms in the early 1960s is thought to have contributed to the country’s extraordinary performance. In this paper, we assess the importance of one key set of policies, the trade policy reforms in Korea, as well as the concurrent GATT tariff reductions. We develop a model of neoclassical growth and trade that highlights two forces by which lower trade barriers can lead to increased per worker GDP: comparative advantage and specialization, and capital accumulation. We calibrate the model and simulate the effects of three sets of tariff reductions that occurred between the early 1962 and 1995. Our main finding is that the model can explain up to 32 percent of South Korea’s catch-up to the G7 countries in output per worker in the manufacturing sector. (The rest omitted)