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How can Korea Boost Potential Output to Ensure Continued Income Convergence? PDF Free

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How can Korea Boost Potential Output to Ensure Continued Income Convergence? PDF
By:Sonali Jain-Chandra,Ms. Longmei Zhang
Published on 2014-04-03 by International Monetary Fund


Korea’s rapid growth has slowed in recent years, suggesting lower potential growth. This paper uses an array of techniques, including statistical filters, a multivariate model and the production function, to estimate Korea’s potential growth. The main finding is that trend growth has fallen from around 4¾ percent during 2000-07 to around 3¼ -3½ percent by 2011-12. Absent reforms, it is projected to fall further to around 2 percent by 2025, primarily due to declining working-age population. However, Korea’s potential growth can be maintained at a higher level by putting in place a comprehensive structural reform agenda, including increased female and youth labor force participation, liberalization of product and labor market regulation. Staff simulations suggest that such reforms could lift potential growth by around 1¼ percentage point over the next decade, maintaining potential growth at around 3¼ percent, counteracting the effect of population aging, and enabling Korea to continue to converge to income levels of the United States.

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Book ID of How can Korea Boost Potential Output to Ensure Continued Income Convergence?'s Books is SpOAAwAAQBAJ, Book which was written bySonali Jain-Chandra,Ms. Longmei Zhanghave ETAG "KzWVFjWwFS0"

Book which was published by International Monetary Fund since 2014-04-03 have ISBNs, ISBN 13 Code is 9781475583991 and ISBN 10 Code is 1475583990

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Book which have "15 Pages" is Printed at BOOK under CategoryBusiness and Economics

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