Document Type

Dissertation

Date of Award

1971

Keywords

Korea, Economic conditions, Mathematical models

Degree Name

Doctor of Philosophy (PhD)

Department

Economics

First Advisor

John E. La Tourette

Second Advisor

Kenneth K. Kurihara

Third Advisor

Robert Lovejoy

Series

Science and Mathematics

Abstract

This study focussed on estimating potential output and on identifying the sources of growth. The major emphasis dealt with the specification of applied methods of Drabble, Adelman and Denison and coqultisous of the results. Moreover, the sources of growth are estimated using the actual output, labor and capital inputs, a la Denison.

The primary data used in the study were taken from the Economic Statistics Yearbook provided by the Bank of Korea and the Economic Planning Board.In the case of agriculture, the regressed values were assumed to be the potential estimates, a la Drabble. For the non-agricultural sectors, a more elaborate method of estimating potential values was used, i.e., by using the Adelman and Denison method along with the Drabble technique, potential output and labor force were generated. Working assumptions were added in distributing the released labor force between industry and tertiary sectors. These assumptions are, first, labor force is assumed to be distributed at 25 to 75 basis. Secondly, it is assumed to be distributed at 50:50 basis in estimating the potential labor force in industry and tertiary sector. Moreover, it was assumed that the newly distributed labor force had an equivalent labor productivity to the currently employed workers in the respective sectors.

The method of analysis and the consequent expositions of the derived potential output data established the fact that for the purpose of comparison, and inference, the adopted method proved to be very useful.

Additional objectives of the study were to investigate the required investment to achieve potential output and to examine the possibility of raising necessary saving.

The development, findings, and inferences of the study are contained in eight chapters. The data and the calculations of empirical evidence were presented in various tables either in the relevant chapters or in appendix to respective chapters. The first chapter is primarily a synopsis of the study. In Chapter II, the variables are explained and the sources of data identified. In Chapter III, methodological and statistical techniques are discussed. In Chapter IV, the agricultural sector's potential output estimates are presented and the sources of sectoral growth analyzed. The estimates of potential output and growth analyses for both industry and the tertiary sectors are presented in Chapters V and VI, respectively. In Chapter VII, the inter-sectoral comparisons are made as a part of the analysis in the aggregate economy. Chapter VIII contains the summary and conclusion; particularly, the implications and inferences of findings in regard to policy recommendation. In this chapter an "optimum policy" for the sustained growth is suggested as a means of encouraging a further growth accomplishment.

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