Achieving the Shared Economic Growth

Sung-Hee Jwa
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Sung-Hee Jwa: President Park Chung Hee Memorial Foundation, and Chair Professor, Park Chung Hee School of Policy and Saemaul, Yeungnam University, The Republic of Korea.

The Pakistan Development Review, 2018, vol. 57, issue 1, 45-71

Abstract: After critically reviewing the literature on the institutional approaches for the shared growth, this paper briefly presents a General Theory of Economic Development (GTED) as basis for the discussion of shared growth. The GTED argues that Economic Discrimination (ED) by Markets, Corporations and Government is a necessary condition for shared economic development while Egalitarianism by any of them is a sufficient condition for economic stagnation. ED means treating the different differently while Egalitarianism is antithesis to ED. This paper also presents a new empirical framework for analysing growth and productivity implied by the GTED, and provides the empirical results that a 1 percent increase of per capita corporate asset brings about a 0.4 percent increase in per capita income and a decrease of income GIN1 coefficient by 0.015, supporting "the corporate-led shared growth hypothesis" of the GTED. Finally, the paper discusses the dramatic experiences of the rise. and fall of Korea's economic development and the stagnated Pakistani experience over the last 60 years, implying that the growth stagnation has been due to the anti-corporate policy led by the egalitarianism.

Keywords: General Theory of Economic Development; Shared Growth; Economic Discrimination (ED); Egalitarianism; Corporate-led Shared Growth; ED Policy Paradigm (search for similar items in EconPapers)
JEL-codes: B B5 D21 D23 O1 O43 P14 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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