Structural shift and increasing variety in Korea, 1960-2010: Empirical evidence of the economic development model by the creation of new sectors

Jung-In Yeon, Andreas Pyka and Tai-Yoo Kim

No 13-2016, Hohenheim Discussion Papers in Business, Economics and Social Sciences from University of Hohenheim, Faculty of Business, Economics and Social Sciences

Abstract: In this paper, we examine the experiences of the Korean economy alongside theoretical knowledge of economic development and structural change. To demonstrate the generalized hypotheses on structural change, input-output tables of Korea, from 1960 to 2010, were analyzed. Our interest in taking time series of input-output tables originates from the following two issues. Firstly, we raise the question of whether Korean industrial structure changes have followed a certain pattern of structural shifts as well as increasing variety. Secondly, if so, it is questioned how the meso-level conditions for economic development could be explained from such a pattern. To search for answers, we adopt a model of the economic development by the creation of new sectors, named TEVECON, as our theoretical framework. Using this growth model, we derive hypotheses about how the structural change could affect economic development, and then we determine how the empirical analysis of the Korean economy verifies and deepens our understanding of structural change and economic development. This paper contributes to the empirical validation of the theoretical knowledge of economic development by the emergence of key sectors and the creation of new industries.

Keywords: Structural change; Increasing variety; Unrelated variety; Input-output table; Korean economy; TEVECON model; Economic development; Economic growth (search for similar items in EconPapers)
JEL-codes: D31 D62 O10 O30 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-hme and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/146642/1/868886785.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:hohdps:132016

Access Statistics for this paper

More papers in Hohenheim Discussion Papers in Business, Economics and Social Sciences from University of Hohenheim, Faculty of Business, Economics and Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().