Sunday, November 3, 2019

South Koreas Economic Indicators and Recent Growth Rate Assignment

South Koreas Economic Indicators and Recent Growth Rate - Assignment Example The growth theory places emphasis on increasing government expenditure, net exports (exports-imports) and investments which are obtained from savings. South Korea’s GDP growth levels can be traced to its increase in export levels, investment levels, and government expenditure. Therefore, the growth theory matches quite well with the economic development and growth in South Korea and its contributing factors-investment, exports and government expenditure. Rapid growth levels coincide with extensive government interventions on the economy. Economic and political policies were geared towards a free capitalistic economy with little government interference except in adjusting externalities resulting from the market failure. The political structure was also adjusted in order to support a capitalistic economy. Investment in human capital refers to investing in nutrition and health, schools and higher education, investment in children, migration, fertility rates, infant mortality rates and maternal healthcare. For example, by analyzing the infant mortality rates or literacy levels of the population, there is a clear positive correlation between an increase in the levels of literacy and infant mortality and an increase in GDP. Investing in children is particularly crucial for long-term economic growth and development of any country. Investment in human capital plays an integral role in any country’s economic growth and development. From the data, it is easy to identify the correlation between GDP and initial human and physical capital. Therefore, countries with greater human capital have greater economic growth Ceteris Paribas. The high human and physical capital levels determine the productivity levels of South Korea.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.