Macroeconomics: South Korea Economic Growth
South Korea: Why is it growing so rapidly? What explains eco growth in South Korea from 1950? I need the reason for the rapid growth and eco growth reasons. 2-3 Reference
South Korea’s Rapid Economic Growth
South Korea in the past several decades has undergone a period of a steady growth. The economy of South Korea has been rising since it survived the great economic recession. The growth in the economy has been dated back since 1950s. The economic growth of a country can be measured in several parameters the major being the country`s gross domestic product. This is the value of the finished goods and services produced in a particular country in a given period of time. This paper seeks to establish the various factors that lead to the rapid growth of South Korea since 1950.
After the second world war, South Korea`s economy had been greatly affected and there was need to put in place measures that would eventually bring back the economy. To begin with in the early 1950s, the government of South Korea did away with imports and embarked on own production where it wanted to sustain itself fully without having to import from other countries. This was done through the increase in the increase in the import tariffs and exchange rates (Bahk, Lynch, & Khang, 2017). Additionally, for one to import anything, special permits were to be obtained. The strategy however failed and in the 1960s the import tariffs were reduced and the government resolved into issuing a list of the items not to be imported.