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Working Paper

Economic Growth and Change in Income Distribution : The Korean Case

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커버이미지
  • 저자 서상목(徐相穆)
  • 발행일 1985/09/01
  • 시리즈 번호 8508
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요약 Analysis of Korea's experience brings out some interesting
points about the relationship between growth and equity.

First of all, the relationship between these twin goals of
development is very complex and diverse. We have observed
that during a relatively short period of 17 years the trend in
income distribution has been reversed several times, Clearly, a
number of factors with quite different distribution implications
can operate at any given time. Thus, it is perhaps naive to view
the relationship between growth and equity from a simplified
view of the Kuznets U-Hypothesis.

Second, economic policies play a very important role in
determining income inequality. For example, the promotion of
labor-intensive export industries in Korea has contributed
positively to spreading the benefits of growth more equitably,
while the price support policy and the promotion of large-scale
firms through preferential bank loans have adversely affected the
distribution of income. It is also important to note that price
stability has contributed positively to the improvement in income
distribution.
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