Pathway to a New Theory of Economic Development

  • Sung-Hee JwaEmail author


This chapter summarizes the new General Theory of Economic Development (Jwa 2017) which is adopted to re-interpret Korea’s economic development evolution. The importance of viewing the market economy as an economic institution is stressed and a detailed picture of the constitution of a market economy that allows for a more realistic treatment of the economy over the typical institution-free textbook models is provided. Also mentioned is political leadership, including its nature and quality and the prevailing political ideology, as the most important institution guiding the evolution of a society. The author also lays down the essence of the new General Theory of Economic Development based on the idea of “economic discrimination” which is then employed to understand the role of market, especially the importance and relevance of free-riding (i.e. externalities) and the nature of the complex economy, as well as the role of corporate organizations and the government in economic development. It is argued that the key to economic development is the “holy trinity of economic development” which incorporates the market, corporations and the government working in tandem under the principle of economic discrimination.


General theory of economic development Economic discrimination New institutional economics Corporate economy Free-riding Development failure Holy trinity of economic development Egalitarianism 


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Copyright information

© The Author(s) 2017

Authors and Affiliations

  1. 1.Park Chung Hee Memorial FoundationSeoulKorea (Republic of)

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