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The Determinants of Economic Growth Versus Genuine Progress in South Korea

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  • Simon Feeny
  • Heather Mitchell
  • Christine Tran
  • Matthew Clarke

Abstract

This paper examines whether the drivers of economic growth are the same as those for genuine progress in the case of South Korea. Using data covering the period 1970–2005, the paper first constructs a Genuine Progress Indicator (GPI). An empirical model is then specified and estimated using growth in GDP per capita and growth in the GPI per capita as dependent variables. Results indicate that while physical capital, research and development, exports, and inflation are all important in determining growth in GDP per capita, only physical capital is a driver of genuine progress. These findings highlight the need for policymakers to identify and target other determinants of genuine progress to improve the well-being of South Koreans, rather than focus attention on traditional sources of economic growth. Copyright Springer Science+Business Media B.V. 2013

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  • Simon Feeny & Heather Mitchell & Christine Tran & Matthew Clarke, 2013. "The Determinants of Economic Growth Versus Genuine Progress in South Korea," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1055-1074, September.
    • Handle: RePEc:spr:soinre:v:113:y:2013:i:3:p:1055-1074
    DOI: 10.1007/s11205-012-0127-4
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    Cited by:

    1. Daniel Francisco Pais & Tiago Lopes Afonso & Ant nio Cardoso Marques & Jos A Fuinhas, 2019. "Are Economic Growth and Sustainable Development Converging? Evidence from the Comparable Genuine Progress Indicator for Organisation for Economic Co-operation and Development Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 202-213.
    2. Bleys, Brent & Whitby, Alistair, 2015. "Barriers and opportunities for alternative measures of economic welfare," Ecological Economics, Elsevier, vol. 117(C), pages 162-172.
    3. Mastura Hashim & Imtiaz Mohammad Sifat & Azhar Mohamad, 2018. "GDP vs genuine progress quantification of economic performance in South Korea and Malaysia," Economics and Business Letters, Oviedo University Press, vol. 7(4), pages 169-178.
    4. John Inekwe, 2015. "The Contribution of R&D Expenditure to Economic Growth in Developing Economies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(3), pages 727-745, December.

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