IDEAS home Printed from https://ideas.repec.org/p/gpe/wpaper/38766.html
   My bibliography  Save this paper

The effects of public spending in the green and the care economy: the case of South Korea

Author

Listed:
  • Onaran, Özlem
  • Oyvat, Cem

Abstract

The aim of this article is to analyse the impact of public spending in the green economy and the care economy on employment of men and women and GDP in South Korea. We empirically estimate a vector autoregression (VAR) model. In analysing the green economy, we focus on renewable energy, energy efficiency and public transport. The care economy includes healthcare, social care, education, and childcare. The results show the employment creation potential of the green and the care economy to facilitate a just transition to a zero-carbon and caring economy. We analyse the gendered employment effects of different public spending categories and point at the importance of a policy mix to ensure that a green transition is gender-equitable and both the ecological transition and care needs of the countries are adequately addressed. The multiplier effects on GDP are positive and above one in both spending categories, albeit larger in the care economy in the medium run.

Suggested Citation

  • Onaran, Özlem & Oyvat, Cem, 2023. "The effects of public spending in the green and the care economy: the case of South Korea," Greenwich Papers in Political Economy 38766, University of Greenwich, Greenwich Political Economy Research Centre.
    • Handle: RePEc:gpe:wpaper:38766
    as

    Download full text from publisher

    File URL: http://gala.gre.ac.uk/id/eprint/38766/7/38766_ONARAN_The_effects_of_public_spending_in_the_green_and_the_care_economy.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Özlem Onaran & Engelbert Stockhammer, 2005. "Two Different Export-Oriented Growth Strategies: Accumulation and Distribution in Turkey and South Korea," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 41(1), pages 65-89, January.
    2. Yannis Dafermos & Maria Nikolaidi, 2019. "Fiscal policy and ecological sustainability," FMM Working Paper 52-2019, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. Stephanie Seguino, 2012. "Macroeconomics, Human Development, and Distribution," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 13(1), pages 59-81, February.
    4. David Kiefer & Codrina Rada, 2015. "Profit maximising goes global: the race to the bottom," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(5), pages 1333-1350.
    5. Jae-Hyup Lee & Jisuk Woo, 2020. "Green New Deal Policy of South Korea: Policy Innovation for a Sustainability Transition," Sustainability, MDPI, vol. 12(23), pages 1-17, December.
    6. Özlem Onaran & Cem Oyvat & Eurydice Fotopoulou, 2019. "The effects of gender inequality, wages, wealth concentration and fiscal policy on macroeconomic performance," FMM Working Paper 50-2019, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    7. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    8. Stockhammer, Engelbert & Onaran, Ozlem, 2004. "Accumulation, distribution and employment: a structural VAR approach to a Kaleckian macro model," Structural Change and Economic Dynamics, Elsevier, vol. 15(4), pages 421-447, December.
    9. Nancy Folbre, 2006. "Measuring Care: Gender, Empowerment, and the Care Economy," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 7(2), pages 183-199.
    10. Rania Antonopoulos & Kijong Kim & Tom Masterson & Ajit Zacharias, 2010. "Investing in Care: A Strategy for Effective and Equitable Job Creation," Economics Working Paper Archive wp_610, Levy Economics Institute.
    11. Robert Pollin & James Heintz & Heidi Garrett-Peltier, 2009. "The Economic Benefits of Investing in Clean Energy: How the Economic Stimulus Program and New Legislation Can Boost U.S. Economic Growth and Employment," Published Studies economic_benefits, Political Economy Research Institute, University of Massachusetts at Amherst.
    12. Stephanie Seguino & Maria Sagrario Floro, 2003. "Does Gender have any Effect on Aggregate Saving? An empirical analysis," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(2), pages 147-166.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oyvat, Cem & Onaran, Özlem, 2022. "The effects of social infrastructure and gender equality on output and employment: The case of South Korea," World Development, Elsevier, vol. 158(C).
    2. Cem Oyvat & Oğuz Öztunalı & Ceyhun Elgin, 2020. "Wage‐led versus profit‐led demand: A comprehensive empirical analysis," Metroeconomica, Wiley Blackwell, vol. 71(3), pages 458-486, July.
    3. Eckhard Hein, 2020. "Gender Issues in Kaleckian Distribution and Growth Models: On the Macroeconomics of the Gender Wage Gap," Review of Political Economy, Taylor & Francis Journals, vol. 32(4), pages 640-664, October.
    4. Özlem Onaran & Cem Oyvat & Eurydice Fotopoulou, 2019. "The effects of gender inequality, wages, wealth concentration and fiscal policy on macroeconomic performance," FMM Working Paper 50-2019, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    5. Eckhard Hein, 2017. "Post-Keynesian macroeconomics since the mid 1990s: main developments," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 14(2), pages 131-172, September.
    6. Betül Mutlugün, 2022. "Endogenous income distribution and aggregate demand: Empirical evidence from heterogeneous panel structural vector autoregression," Metroeconomica, Wiley Blackwell, vol. 73(2), pages 583-637, May.
    7. Engelbert Stockhammer & Rafael Wildauer, 2016. "Debt-driven growth? Wealth, distribution and demand in OECD countries," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(6), pages 1609-1634.
    8. André M. Marques, 2022. "Reviewing demand regimes in open economies with Penn World Table data," Manchester School, University of Manchester, vol. 90(6), pages 730-751, December.
    9. Anıl BÖLÜKOĞLU, 2019. "Demand Regime of Turkey: A Post-Keynesian Econometric Analysis," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(42).
    10. Engelbert Stockhammer & Robert Stehrer, 2011. "Goodwin or Kalecki in Demand? Functional Income Distribution and Aggregate Demand in the Short Run," Review of Radical Political Economics, Union for Radical Political Economics, vol. 43(4), pages 506-522, December.
    11. Engelbert Stockhammer & Ozlem Onaran, 2013. "Wage-led growth: theory, evidence, policy," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(1), pages 61-78, January.
    12. Stockhammer, Engelbert & Rabinovich, Joel & Reddy, Niall, 2017. "Distribution, wealth and demand regimes in historical perspective. USA, UK, France and Germany, 1855-2010," Economics Discussion Papers 2017-5, School of Economics, Kingston University London.
    13. Marques, André M. & Lima, Gilberto Tadeu, 2022. "Testing for Granger causality in quantiles between the wage share in income and productive capacity utilization," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 290-312.
    14. Kim, Kijong & İlkkaracan, İpek & Kaya, Tolga, 2019. "Public investment in care services in Turkey: Promoting employment & gender inclusive growth," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1210-1229.
    15. Engelbert Stockhammer & Joel Rabinovich & Niall Reddy, 2018. "Distribution, wealth and demand regimes in historical perspective," FMM Working Paper 14-2018, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    16. Robert A. Blecker, 2016. "Wage-led versus profit-led demand regimes: the long and the short of it," Review of Keynesian Economics, Edward Elgar Publishing, vol. 4(4), pages 373-390, October.
    17. Zuazu-Bermejo, Izaskun, 2024. "Reviewing feminist macroeconomics for the XXI century," ifso working paper series 30, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
    18. Jose Barrales‐Ruiz & Ivan Mendieta‐Muñoz & Codrina Rada & Daniele Tavani & Rudiger von Arnim, 2022. "The distributive cycle: Evidence and current debates," Journal of Economic Surveys, Wiley Blackwell, vol. 36(2), pages 468-503, April.
    19. Özlem Onaran, 2016. "Wage- versus profit-led growth in the context of international interactions and public spending: The political aspects of wage-led recovery," Working Papers PKWP1603, Post Keynesian Economics Society (PKES).
    20. Jochen Hartwig, 2014. "Testing the Bhaduri-Marglin model with OECD panel data," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(4), pages 419-435, July.

    More about this item

    Keywords

    green economy; care economy; fiscal policy; South Korea; VAR; multiplier; employment; gender gap;
    All these keywords.

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gpe:wpaper:38766. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nadine Edwards (email available below). General contact details of provider: https://edirc.repec.org/data/pegreuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.