Economic Growth and Political Impacts

下面为大家整理一篇优秀的paper代写范文- Economic Growth and Political Impacts，供大家参考学习，这篇论文讨论了韩国经济增长与政治影响。近年来，韩国经济的发展引起了世界各国的关注，这得益于GDP的快速发展，人口在国际市场上的显著增长。而政府监管的政策和规定帮助国家度过了1997年和2008年的金融危机。政府对韩国经济的快速发展和市场占有率的提高发挥了重要作用。但同时也发现，政府可能通过强力干预对经济产生负面影响。其他政府的支持，如美国政府也发挥了重要作用，使自由贸易。预计未来韩国经济发展将保持稳定。

Introduction

The Development of South Korean Economy

South Korea is a historical country located in the East Asia. In the 1960s, the economic begun to develop fast in the Korea, which aimed to promotes the development of industry manufacturing (Piazolo, 2011). At the same period, the government started the five year budget plan with the depositing industry with other countries, especially China. As the backward of the manufacturers, the system of the trade and the economic development were simple, and the cost was at the bottom level. In the 1970s, Korea paid more attention to the heavy industry, such as the steel, petrol. Stepping into 1980s, the interchanges of the construction promoted to the rapid growth of the economy, in accordance with the flexible trade policy also significant promoting the country’s economic growth towards maturity (Acemoglu, 2002). Destroyed by the economic crisis in 1997, the debt bank fees accompanied with the shortage of supplies resulting in a significant loss in Korea. Whereas, the relationship built with the IMF facilitated the development of democracy and global trade for South Korea (CO Oh, 2005).

Korean economic performance has gone through lots of debates and controversy. The essay aims to find out what the influence of politics on the Southern Korean economy in the 1960s to date. From the perspective of total land area, southern Korea is relatively small, which forces farmers to grow comparably cultivate their land intensively and enhance field productivity as much as possible. At the same time, there are not many natural resources in southern Korea. The economy of southern Korea has changed differently in different periods.

State, where government-business collusion prevails, could promote the domestic growth of economy effectively. The mechanism engages the interests of the actors involved—namely, national government and corporations (Kim, 2007). The main purpose of government is to stay in power. The method of maintaining power depends on the type of government, but increasing prosperity and delivering economic growth is the most common way to secure power. The main purpose of most of the industries is to maximize profits. Therefore, firms strive to operate economies of scale to bring down production costs, and the government seeks out a strategy that can help the country grow. Based on the above logic, it is assumed in the article that an increase of democracy of the government in Korea to increase Korea’s economic growth rate, (a) relative to the world’s average growth rate and (b) relative to its own growth rate over time.

The South Korean Political Activities

The Korean political system has undergone a great change from the 1960s to date. With respect to economic development, there are two dimensions of the Vietnam War—a destruction process and a wealth building process. Exporting male soldiers to the battlefield was treated as destruction for which South Korea gained post-war assistance economically, politically and socially and thus could be treated as wealth building process. As one of the two countries that gained profits from participation in the Vietnam War’s, Korea earned its profits by assisting the US to establish power in Asian sub-region. In order to gain help from the US, Korea chose to be the partner of US government by offering its only available human resource (Lee, 2001).

Before Japan invaded Southern Korea, China has exerted a great influence on the development of the economy in Korea. For instance, the Korean government also adopts centralized and bureaucratic government. After 1876 when Korean open the port to Japan, there was a mushrooming development of Japanese companies in Korea. During the Sino-Japanese War and Pacific War (1937-1945), many Korean companies go bankrupt because of the invasion of the Japanese government. From 1946 to 1961 after the Korean War, there was a large amount of American army flourishing to Korea and American government promised that they would offer a great financial help for Korean government, which means that Korea is one of the highest aid-receiving countries in the world. Generally speaking, the most industries in Korea were consumer-goods industries including food and textiles, import substitution took place mainly in these industries. In the 1970s, the South Korea implemented the separation of the three powers that helped to inhibit the activities of corruption.

The period from 1961 to the 1960s and 1970s was important to Korea when there were great changes in Korea and people started to change their impression towards Korea (Kang, 2002). After the 2010s, the economic development of Southern Korea has attracted the attention from people all around the world. It is one of the 12 biggest economic and social powers in the world; it shows and possesses high technology; steady and relatively high growth rate; stable governments; low criminal records; healthy economic sectors with prospects for further growth. In order to support the US military action in South Vietnam, South Korea exported a lot of labor force to the battlefield of Vietnam. However, the image of these soldiers was quite contradictory, that they could be treated as both the victims in a war and the executors of the war. The import and export of human resources to the Vietnam War battlefield did not bring any goods for these men (Im, 2011). Besides, Jin-Kyung Lee also pointed out that the human resource inflow and outflow did not bring any economic gains to South Korea. He also reveals that the reason for South Korea’s participation in Vietnam War was to cater to US interest instead of bringing economic or social interests for South Korea itself. The political system in South Korea has facilitated the development of the economy.

Question and Objectives

Main research question: what is the influence of Korean political events on the development or economy from the 1970s-to date?

Subquestion:

1. Has the government played a crucial role in the development of Korea economy in the South Korea in the from the 1970s-to date?

2. Is financial support from other countries such as the United States important to the development of Korean economic development from the 1970s-to date?

3. What is the role of government in helping Korea to get rid of the financial crisis from the 1970s-to date?

4. Why did South Korea perform so well after the Korean War?

5. How did the government intervene in the economic activities in the banking system in South Korea?

The research mainly makes the study on the main aspects of Korean development, especially on the financial development. The study also aims to find out the role of the government in the development of the economy. The development of Korean economy has been regarded as a controversy for many economists. It could be taken as an example for other countries such as Vietnam and Singapore. The study is aimed to deal with the controversy and find out the relationship between the politics and economy. The study will also find out the guidelines for the development of the economy in developed countries necessary.

However, the study has lots of limitations. It may focus on too many aspects and issues. The facts about the Korea economic performance will be demonstrated. And the effects of Korean government on the development of Korean economy would be analyzed. The data about the Korean official government and results and other authoritative agencies would be obtained for the purpose of making a deep analysis. The study would try to use the sufficient data to cover the limitations of the study.

South Korea has become the key manufacturer in the heavy and high-technology industry. The ability for the country to deal with the financial crisis was praised. At the same time, the short-term economic growth has experienced a fast growth. There are lots of literature that tried to explore the miracle of the Korean economy and its effects on the growth of the economy. Exports are one of the most important figures that tries to analyze how the GDP growth, which could be used to detect how the economy developed in South Korea. I offer the qualitative method about how the Southern Korea increased dramatically. However, since it takes quite long time to get the data and sometimes it is hard for me to gain the qualitative data because of various reason, the research has the limitation of being authoritative.

I also wanted to explore the relationship of democracy with the economic growth. The miracle of economic has a great relationship with the political reform from the example of the comparison of the South Korean economy and the North Korean economy.

Methodology

The study adopts the quantitative methodology in collecting and analyzing data. The study would use the methods of observations from various periods of the development in South Korea and the democracy. In other words, all the data were gained from the official websites of the Southern Korean governments and other authoritative governments about the economic development of Southern Korean and the political development such as from the website named Trading Economy and the United Nation Website. The information that is used in the study is not restricted and the cross-sectional data from the Korean official websites n from a particular year or to cross-sectional averages over long time periods would be used.

After getting the data. In terms of data analysis, the study would use the regression-based techniques assume linear effects in analyzing the data. The method of matching would be used in the study. Matching is the approach that evaluate of causal effects as one would in an experiment. The method of matching is built based on the underlying idea that one should compare the most similar units, for example most similar countries. For instance, the n economic growth, is computed for each of the pairwise comparisons made, and thereafter an average of these effects is calculated to produce the final (generalized) estimate, the Average Treatment Effect (ATE).

The other data analysis method is the content analysis method. Content analysis refers to a content analysis technique as the systematic analysis of content to identify specific meaning of messages (Holsti, 1962). Content analysis can be undertaken with any written material, from documents to interview transcriptions, from media products to personal interviews (Cohen, 2012). Content analysis method was undertaken. Content analysis has several attractions. It is an unobtrusive technique (Krippendorp, 2004) in that one can observe without being observed (Robson, 1993). It focuses on language and linguistic features, meaning in context, is systematic and verifiable (e.g. in its use of codes and categories), as the rules for analysis are explicit, transparent and public (Mayring, 2003). Further, as the data are in a permanent form (texts), verification through reanalysis and replication is possible. By using content analysis, written text can be transformed into highly reliable data for further analysis purposes (Singleton&Straits, 1993).

Data Analysis

As it is mentioned above, the method would use the method of matching and content analysis in analyzing the data. The economy in Southern Korea between the 1960s and 1990s grows dramatically with the average rate of 9 percent. Korea has maintained the fast growth in the last decade. Left in ruins, Korea is one of the poorest countries that became the Asian tiger for the strong economic growth. The democracy of the government has a positive impact in promoting the development of the south Korean economy. The t-test returned statistically significant results. The null hypothesis was that Korea’s average growth rate between 1961 and 2013 is equal to the average growth rate of the rest of the world during the same period. In other words, Korea has much higher rate than other countries. In the 1970s, South Korea focused on the development of heavy industry and the “five-year plan” started, which facilitated the development of the economy. At the same time, the urbanization began that helped to improve the living conditions of people.

In the first graph, it shows that the economy in Korea has a sharp development from the 1980s. In the 1970s to 1980s, the South Korea implemented the system of separation of three powers that help to inhibit the activities of corruption from the government and facilitated the development of the economy. The economy peaked at 1997 under the influence of Asian financial crisis. However, the economy had a sharp downturn from 1997 to 1998. In 1998, the economy in South Korea reached the lowest peak. But from 1998 to 1999, the economy started to have a great development after the reform. From the trends of the development of Korea, it could be seen that the development of GDP has a fluctuation from 2006 to 2016. The rate of growth was at the lowest rate in 2009, which indicates that the financial crisis had exerted a huge influence on the Southern Korean economy. The South Korean government asked the help from IMF and started the reform of the economy. Through the reformation in public fields, the financial industry, and labor industry, Korea quickly got rid of the financial crisis. After that, the GDP had a sharp increase from 2009 to 2010. After 2010, the GDP increased steadily. But after 2013, the economy did not have much change from 2014 to 2016.

At the same time, the population in South Korea has gained a steady development. It seems that the population is not related to the development of the economy. It could be said that the growth of population is not related to the growth of the economy in the case of the Korean economy.

In the last figure, it could be seen that the GDP growth in South Korea has decreased in the latter year in 2016. It is expected that the growth in the project is going to be 2.8% in 2018, accompanied by a pick-up in exports and rising business and consumer confidence. The economic structure in South Korean remains stable. Since 2003 when Korea has joined the free trade agreements, the integration of value chains has gained a fast development. Lots of industries such as shipbuilding would play an important role in reducing the unemployment rate, and the government would make sure that the economic structure in South Korea would be more stable. From 2012 to 2016, the unemployment rate in the South Korea maintains quite stable at around 3 percent, but the inflation rate of South Korea has been reducing dramatically from 2.2 percent to 1.3 percent. South Korea has become one member of the free trade agreements in 2003, which has brought about lots of value for the country. However, from 2012 to 2016, both of the exports and imports of Korean economy has decreased.

The personal income tax of South Korea remains top, and 10 percent of the tax is added to individual and corporate tax, which means that the government has increased the seize for the personal income. The Korean economic crisis has a great impact on the Korean economy. The imports and exports have taken up 85 percent of the GDP economy. Therefore, if the exports and imports reduce, it means that the economy shows a downturn trend. But the financial sector has become competitive, and the business sector has become quite competitive. The baking system of the South Korea remains quite stable.

Conclusion

The study aimed to analyze the relationship between the interference of Korean government in the development of the economy. The main aspects of Korean economy such as GDP and the trends of the economy are analyzed. The Korean economy development has attracted the attention of the world in recent years which was supported by the fast development of GDP, the outstanding increase in the population in the international market. It seems that the policies and rules regulated by the government have helped the country to go through the financial crisis in 1997 and 2008. The government played an important role in contributing to the fast development of the economy and the increase in the market share. However, at the same time, it is also found that the government may have a negative impact on the economy by strong intervention. The support from other government such as the American government also played an important role in making the free trades. It is expected that in the future, the economic development in South Korea will remain steady.

References

1.0  Referencing:

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Chung, Y. (2007).South Korea in the Fast Lane. Economic Development and Capital Formation. New York: Oxford University Press.

Dr. Marc Piazolo, (2011). Determinants of South Korean Economic Growth, international economic journal, vol. 9, no. 4, pp. 109-133.

CO Oh. ( 2005), The contribution of tourism development to economic growth in the Korean economy, Tourism Management, vol. 26, pp. 39-44.

HK Kwon et al. (2003). Marital Relationships Following the Korean Economic Crisis: Applying the Family Stress Model, Journal of marriage and family, vol. 65, no. 2, pp. 316-325.

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Organisation for Economic Co-Operation and Development, (2000). Regulatory reform in Korea. Paris: OECD.Trading Economy, 2017. Korean Economy.

Im, H. (2011). Better democracy, better economic growth? South Korea.” International Political Science Review 32: 579-597.

Jwa, S.(2002) The Evolution of Large Corporations in Korea: A New Institutional Economics Perspective of the Chaebol. Cheltenham: Edward Elgar Publishing, Ltd., Kang, C.(2002). Crony Capitalism: Corruption and Development in South Korea and the Philippines. New York: Cambridge University Press.

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