Economic Growth and Genuine Progress of South Korea

Running head: EAST ASIAN ECONOMIES
East Asian Economies
Name of the Student
Name of the University
Author Note

1EAST ASIAN ECONOMIES
Table of Contents
Answer 1....................................................................................................................................2
Answer 2a...................................................................................................................................3
Answer 2b..................................................................................................................................4
Answer 3a...................................................................................................................................5
Answer 3b..................................................................................................................................6
Answer 4a...................................................................................................................................7
Answer 4b..................................................................................................................................7
Answer 5....................................................................................................................................8
Answer 6..................................................................................................................................10
References................................................................................................................................12

2EAST ASIAN ECONOMIES
Answer 1
The Gross Domestic Product of a country, measuring the total value of the final
commodities and services produced in the boundaries of the same, within a particular period
of time, is the most popular indicator of economic growth (McAuliffe, 2015). However,
Feeny et al. (2013), question the validity of GDP alone as an adequate indicator for the
genuine progress of South Korea. This is because, although the concerned indicator measures
the growth in the economic productivity of a country and the cardinal aspects associated with
the same, it does not consider the overall welfare of the majority of the population as well as
the country itself arising out of the economic growth (MacKenzie, 2015). In simpler words,
the GDP of a country, shows the total economic growth, but fails to show the skewedness in
the distribution of the income growth, the income inequality in the country as well as the
other aspects like social and environmental conditions of the country, which also contribute
robustly in the overall growth of the country and in the level of welfare of the population of
the same (Nielsen, 2016).
As can be seen in the case of South Korea, the GDP of the country, over the years has
shown impressive and upwards dynamics, which indicates towards rapid growth of the
economy of the country. However, the growth has costed the environment as huge loss of
resources has been recorded and also the income inequality of the country has increased in
the contemporary period (Chang, 2013). The level of inflation in the country has also
increased, which has costed the overall population of the country, especially those who did
not receive the fruits of the economic growth of the country. However, these aspects are not
considered in the GDP, thereby indicting towards its inadequacy as a genuine growth
indicator.

3EAST ASIAN ECONOMIES
Answer 2a
There have been considerable literary works on the aspects of the primary factors
which have contributed to the economic growth of South Korea in the last few years, as can
be seen from the impressive GDP dynamics of the country. The main factors, in this context,
as highlighted by different scholars are as follows:
 The most important factor contributing to the economic growth of the country is that
of the presence of robust human capital, as can be seen to measured in terms of high
educational attainment or in terms of high numbers of enrolments of students in
secondary schools and universities (Shin, 2013).
 Another crucial factor contributing to economic progress of South Korea has been the
accumulation of physical capital. The country has experienced high investments in
industries and has also resorted in the path of immense export promotion.
 Another reason behind the economic growth of South Korea, has been the inherent
capacity of the country to adapt quickly to the continually changing technological
aspects in the global framework and also the capability of the country to explore and
take advantages of new opportunities (Henderson, Storeygard & Weil, 2012).
 The increasing liberalisation and the free trade approach taken by the government of
the country, has also contributed considerably in the growth of the economy of the
concerned country as can be seen from its GDP growth dynamics.
 As pointed out by several literatures the shock adjustment capacity and ability to
maintain an equitable income distribution by the entrepreneurs have also contributed
in the economic growth of the country (Park & Hong, 2013).
 The growth of the economy of South Korea has also come at the cost of the loss of
huge amount of natural resources, thereby leading to decline in the quality of the