THE GROWTH AND DEVELOPMENT OF SOUTH KOREA

A detailed Summary of THE GROWTH AND DEVELOPMENT OF SOUTH KOREA

In the past 20 - 30 years, South Korea has experienced economic development unlike the vast

majority of other developing countries. Not only did South Korea's percentage in GNP per capita, gross

domestic savings, and investment increased, but as well in international trade and in the labor force venturing

out of the agricultural sector. Of the three following economic growth and development theories;

neoclassical, structural change, and dependency, only one, the dependency theory, contradicts with the

successful growth of South Korea. The other two greatly support it.

The neoclassical growth theory which supports Korea's growth and development states that

savings increases the standard of living, and that investment leads to growth. As shown in the data chart,

savings increased by 11% percent while investment increased by 13%. This means that income increased.

With a higher income, people are able to spend and save more which in turn causes more money to circulate

in the market which ultimately increases total social welfare. This is similar to most supply and demand

situations in that if demand increases, suppliers will increase the supply to meet the demand. The the

it will come to a point where marginal cost exceeds marginal benefit. This is where an advancement in

developing by imposing strict laws and by practically draining the resources for the betterment of their own

because there is not a lot of capital in a LCD, an additional investment will yield a great return. Eventually,

states that diminishing returns to labor and capital brings about an incentive to advance technology.

elastic, therefore the wages will remain constant. If not, as more and more people transfer to the industrial

In terms of human development, South Korea has definitely improved. In fact, it has achieved one

development in the colonies. An extremely good example of this situation was when England was the

sector would slowly decrease as well as economic growth and development.

increase in gross domestic savings, investment, and GNP per capita as according to the neoclassical growth

market for labor, if the demand for labor increases, the wage will increase as well. But in this case, supply is

materials from the colonies along with preventing or inhibiting conversion, manufacturing, or industrial

Approximate Word count = 827
Approximate Pages = 3 (250 words per page double spaced)

Category: History

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