PEPP Seminar (January 30th, 2025): “Education and exports in the Korean economic miracle” by Dr. Ian Coxhead
2025/11/20
By Dr. Ian Coxhead (Senior Research Fellow, Interdisciplinary Studies Center, Institute of Developing Economies (IDE-JETRO), Japan)
2025/1/30 (Thur.)
Speaker: Dr. Ian Coxhead (Senior Research Fellow, Interdisciplinary Studies Center, Institute of Developing Economies (IDE-JETRO), Japan)
Chair: Prof. Vuong
Time: 16:45~18:15
Title: Education and exports in the Korean economic miracle
Format: Onsite (3A301)
Abstract:
Human Capital, Technology, and Sustained Growth in South Korea
After decades of moves toward free trade, industry policy is returning to favor in many countries. This trend has renewed interest in the Korean growth “miracle,” often cited as a case of successful industry policy in a developing economy. But was industry policy entirely responsible for the miracle? In the 1980s, following abandonment of the state-directed industrialization strategy, we identify a major education policy change leading to an abrupt increase in the stock of tertiary-educated workers. We show that subsequent firm-level increases in skill inputs helped promote industrial growth through technological complementarities and supply-chain spillovers. These changes likely forestalled diminishing returns to capital, sustaining a high investment rate and enhancing the competitiveness of Korea’s manufactured exports. While the historical circumstances of Korea’s “miracle” cannot be replicated, our findings lead us to question whether industrial development is best pursued through policy support for favored industries, or by building a more highly skilled and creative labor force.
