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Korean Incentive Policies towards Industry and Agriculture

  • Danny M. Leipziger
  • Peter A. Petri
Part of the International Economic Association Series book series (IEA)

Abstract

In just three decades, South Korea has changed from an agrarian economy into a manufacturing powerhouse, capable of competing with Japan and the USA in high technology products and with Europe and Japan in the manufacture of ships and automobiles. It has done so in a way that has spread the benefits of growth widely, across both urban and rural households. From nearly 50 per cent of GDP in the early 1950s, agriculture’s share fell to 14 per cent in 1984. Given the remarkable performance of Korean industry, it is easy to take for granted the rapidity and smoothness of Korea’s sectoral transition. In many countries much smaller shifts in economic structure have created severe intersectoral frictions. This paper explores the circumstances and policies that made Korea’s sectoral transition relatively painless, and concludes with an analysis of the current issues that confront Korea’s intersectoral incentive policy.

Keywords

Industrial Policy Country Study Bank Lending Industrial Growth Industrial Finance 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© International Economic Association 1989

Authors and Affiliations

  • Danny M. Leipziger
    • 1
  • Peter A. Petri
    • 2
  1. 1.The World BankUSA
  2. 2.Brandeis UniversityUSA

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