Over the last 60 years or so, Korea has been one of the most successful economies in the world. What are the sources of this success? Consider the following data:
Korea. Over the last 60 years or so, Korea has been one of the most successful economies in the world. What are the sources of this success? Consider the following data:
GDP per capita is expressed in 2017 US dollars. Population and employment are in millions of heads. Capital is in thousands of dollars. Education is a human capital index based on the average years of schooling.
(a) Compute the (average continuously compounded) growth rate of GDP per worker.
(b) Use our growth accounting methodology to allocate growth in output per worker to TFP, capital per worker, and human capital. What factors are most important?
(c) What is the growth rate of GDP per capita? How does it differ from growth in output per worker? Why?
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