South Koreas Economic Indicators and Recent Growth Rate - Assignment Example

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The author examines South Korea’s economic indicators and recent growth rate. The author also identifies the correlation between human capital investment and economic growth and concludes that the high quality of human capital has been very critical in pushing the GDP of South Korea…

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South Koreas Economic Indicators and Recent Growth Rate

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Subject: Macro & Microeconomics
Type: Assignment
Level: High School
Pages: 2 (500 words)
Downloads: 2
Author: nedraokuneva

Extract of sample "South Koreas Economic Indicators and Recent Growth Rate"

South Korea’s Economic Indicators and Recent Growth RateSouth Korea has experienced sustained economic growth rates for the last couple of decades as evidenced from the table below. The growth levels have coincided with the adoption of policies that have triggered rapid export levels even though the monetary and fiscal policies adopted by South Korea have been conservative. The South Korean government availed infrastructure that coincided with rapid growth. Some of those factors include a shift from agricultural labour force to an industrial one, educating its labour force to improve productivity levels that have subsequently led to increases in savings and investments levels.

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 market failure. The political structure was also adjusted in order to support a capitalistic economy. YearAdjusted net enrollment rate, primary (% of primary school age children)GDP per capita growth (annual %)GDP (current US$)Number of under-five deathsInfant Mortality rate (per 1,000 live births)198099.87273-3.40788065678023805211011414.4198199.872735.

7413311976240987915927013.1198299.872736.63056527681639218690895312.2198399.8727310.5403289990524009024875211.4198499.872738.51172033199983374277838110.6198599.872736.4180349741.0373E+1178269.9198699.8727311.128856041.19774E+1170929.3198799.8727311.165468631.50987E+1160988.6198899.8727310.572377012.02308E+1151658198999.872735.7013899082.48769E+1145377.6199099.872738.2258954342.84757E+1141007.1199199.872738.6323223383.32325E+1140466.8199299.872734.6718566813.56118E+1141246.4199399.872735.2547449323.

91963E+1143156.1199499.872737.6829640374.58704E+1143915.8199599.872737.8400592095.5933E+1142825.5199699.872736.1695209036.03413E+1140685.3199799.872734.7795869875.60485E+1138295.3199899.87273-6.392065453.76482E+1135495.4199999.872739.9463132414.86315E+1133635.7200099.872737.9250460325.61633E+1132586.1200199.872733.7544663335.33052E+1131126.4200299.872736.8350242696.0902E+1129276.5200399.872732.4231964256.80521E+1127456.4200499.872734.506572727.64881E+1124726200599.872733.7106893428.98134E+1122865.6200699.872734.

6676277231.0118E+1221355.2200799.872734.9735938731.12268E+1220464.8200899.872732.0917528721.00222E+1220174.5200999.872730.2297202199.01935E+1120214.3201099.872736.0046577081.0945E+1219944.1201199.872732.912989281.20246E+1219914201299.872731.8321055411.22281E+1219593.9201399.872732.5298036611.30455E+1218593.7Data from database: World Development IndicatorsCorrelation between Human Capital Investment and Economic GrowthInvestment 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. With the exception of expansion in inputs, a country’s productivity levels (human capital) are a core source of economic development. South Korea does not possess an abundance of natural resources but has recorded greeter annual growth levels than many developed nations in the last few decades. Therefore, the high quality of human capital has been very critical in pushing the GDP and economic development levels of South Korea.

There is no other viable theory that can correlate better with South Korea’s rapid growth level over the last couple of decades than the growth theory.Works CitedIndicators - Data | The World Bank. (n.d.). Retrieved March 18, 2015, fromhttp://data.worldbank.org/data-catalog/world-development-indicatorsSouth Korea GDP - per capita (PPP) - Economy. (n.d.). Retrieved March 18, 2015, from http://www.indexmundi.com/south_korea/gdp_per_capita (ppp).html South Korea GDP Data & Country Report | Global Finance Magazine. (n.d.). Retrieved March 18, 2015, from http://www.gfmag.com/global-data/country-data/south-korea-gdp-country-report South Korea GDP Growth Rate 1970-2015 | Data | Chart | Calendar. (n.d.). Retrieved March 18, 2015, from http://www.

tradingeconomics.com/south-korea/gdp-growth

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