The Korean Economic Forum
Korean Inclusive Growth: Its Measurement and Relationship with Policy Variables
Won-Kyu Kim (KIET) and Sung Wook Hong (KIET)Year 2018Vol. 11No. 2
This paper defines the inclusive growth as the sum of labor productivity,employment ratio and income equality growth rates and measures Koreaninclusive growth(IG) using annual data since 1990. Korean IG showed decliningtrend as a whole since 1990 and in particular labor productivity slowdowncontributed to IG decline during 2011-2016. According to the estimation results,the following variables are found to have positive relations with IG in particular:investment ratio and total factor productivity in labor productivity part; incomeredistribution policy effect in income equality part; laborforce participation ratioand female & youth employment ratios in employment ratio part; and ICTinvestment ratio in the other variables.