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Imperial Policy or World Price Shocks? Explaining Interwar Korean Consumption Trend

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  • Cha, Myung Soo

Abstract

Japan vigorously enforced wide-ranging developmental policies in colonial Korea, including a “green revolution†and an industrialization drive. Why did then colonial per capita food availability decline? Simulations using a dynamic general equilibrium model indicate that tax raises, which financed expanding public investment, did not lower, but raised consumption levels over time by accelerating accumulation. Food consumption fell because these policy efforts were inadequate to defeat population explosion initiated by a health campaign. The interwar agricultural depression exacerbated this Malthusian situation. Nevertheless, interwar Korean consumption trend compares favorably with most other rice producers, where the level of government intervention appeared suboptimal.

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  • Cha, Myung Soo, 1998. "Imperial Policy or World Price Shocks? Explaining Interwar Korean Consumption Trend," The Journal of Economic History, Cambridge University Press, vol. 58(3), pages 731-754, September.
    • Handle: RePEc:cup:jechis:v:58:y:1998:i:03:p:731-754_02
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    Cited by:

    1. Booth, Anne & Deng, Kent, 2016. "Japanese colonialism in comparative perspective," Economic History Working Papers 68883, London School of Economics and Political Science, Department of Economic History.
    2. Choi, Seong-Jin & Schwekendiek, Daniel, 2009. "The biological standard of living in colonial Korea, 1910-1945," Economics & Human Biology, Elsevier, vol. 7(2), pages 259-264, July.
    3. Saxonhouse, Gary R., 2005. "Kazuo Sato and Korean and Japanese managers and workers in colonial Korea," Journal of Asian Economics, Elsevier, vol. 16(5), pages 770-779, October.
    4. Arimoto, Yutaka & Lee, Changmin, 2014. "Did Japanese direct investment in Korea suppress indigenous industrialization in the 1930s? : evidence from country-level factory entry patterns," IDE Discussion Papers 450, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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