How Much of South Korea's Growth Miracle Can Be Explained by Trade Policy?

• 成果类型: Article
• 署名作者: Connolly, Michelle; Yi, Kei-Mu
• 署名单位: Duke University; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20120197
• 发表日期: 2015
• 页码: 188-221
• 关键词: vertical specialization; LIBERALIZATION; MODEL; PRODUCTIVITY; countries; geography; DYNAMICS; returns; scale; terms

摘要

This paper assesses the importance of trade policy reforms in South Korea, as well as the General Agreement on Tariffs and Trade (GATT) tariff reductions, in explaining Korea's growth miracle. We develop a model of neoclassical growth and trade in which lower tariffs lead to increased gross domestic product (GDP) per worker via comparative advantage and specialization, and capital accumulation. We calibrate the model and simulate the tariff reductions that occurred between early 1962 and 1989. The model can explain 17 percent of South Korea's catch-up to the G7 countries in value-added per worker in the manufacturing sector. These gains, as well as most of the welfare gains, are driven by two key transmission channels: multistage production and imported investment goods.