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Growth Policy and Inequality in Developing Asia: Lesson from Korea

Author

Listed:
  • Hyun-Hoon LEE

    (Department of International Trade and Business, Kangwon National University)

  • Minsoo LEE

    (Economics and Research Department, Asian Development Bank (ADB))

  • Donghyun PARK

    (Economics and Research Department, Asian Development Bank (ADB))

Abstract

While developing Asia has traditionally prioritized growth over equality, recent years have witnessed a growing popular demand for more inclusive growth in the region. In this connection, Korea, which has managed to combine rapid economic growth and moderate inequality levels, offers potentially valuable lessons for developing Asia. The central objective of our paper is to analyze the relationship between growth policy and inequality in Korea in order to identify relevant policy implications for developing Asia. According to our analysis, the one policy that stands out as a driver of both rapid economic growth and more equal income distribution is large and systematic investments in public education. The broader positive lesson from the Korean experience is that growth and inequality do not necessarily go hand in hand, and government policy can make a difference.

Suggested Citation

  • Hyun-Hoon LEE & Minsoo LEE & Donghyun PARK, 2012. "Growth Policy and Inequality in Developing Asia: Lesson from Korea," Working Papers DP-2012-12, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2012-12
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    File URL: http://www.eria.org/ERIA-DP-2012-12.pdf
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    References listed on IDEAS

    as
    1. Randall S. Jones & Masahiko Tsutsumi, 2009. "Sustaining Growth in Korea by Reforming the Labour Market and Improving the Education System," OECD Economics Department Working Papers 672, OECD Publishing.
    2. Sooyoung Park, 2009. "Analysis of Saemaul Undong: a Korean rural development programme in the 1970s," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 16(2), pages 113-140, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Sung-Jin Kang & Robert Rudolf, 2016. "Rising Or Falling Inequality In Korea? Population Aging And Generational Trends," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-26, December.
    2. Marginson, Simon, 2018. "Higher education, economic inequality and social mobility: Implications for emerging East Asia," International Journal of Educational Development, Elsevier, vol. 63(C), pages 4-11.
    3. Sukyong Seo & Young Dae Kwon & Ki-Bong Yoo & Yejin Lee & Jin-Won Noh, 2019. "Is Transient and Persistent Poverty Harmful to Multimorbidity?: Model Testing Algorithms," IJERPH, MDPI, vol. 16(13), pages 1-11, July.
    4. Seungwoo Han, 2022. "Identifying the roots of inequality of opportunity in South Korea by application of algorithmic approaches," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-10, December.
    5. Kresse, Klaas & van der Krabben, Erwin, 2022. "Rapid urbanization, land pooling policies & the concentration of wealth," Land Use Policy, Elsevier, vol. 116(C).
    6. Siti Rohima & Saadah Yuliana & Abdul Bashir & Nazirwan Hafiz, 2017. "Public Infrastructure Availability on Development Disparity," Business and Economic Research, Macrothink Institute, vol. 7(2), pages 375-391, December.
    7. Kross, Karmo, 2013. "Developmental welfare capitalism in East Asia with a special emphasis on South Korea," Discourses in Social Market Economy 2013-05, OrdnungsPolitisches Portal (OPO).
    8. Gyu Ri Kim & Chung Mo Nam, 2017. "Temporal trends in educational inequalities in non-communicable diseases in Korea, 2007-2015," PLOS ONE, Public Library of Science, vol. 12(12), pages 1-15, December.

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    More about this item

    Keywords

    Growth; growth policy; inequality; Asia; Korea;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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