The debate on the economic development process of South Korea: an alternative line of interpretation

Abstract

South Korea showed high and rapid economic growth particularly between 1960 and 1980 along with an upgrading of its industrial park and strong insertion into international trade. There are three major theoretical perspectives which provide interpretations of the reasons that led Korea to succeed: 1) Supporters of mainstream economics - defenders of market principles; 2) the current endogenous heterodox defending the state's role as a central element; 3) the third perspective claims that the external scenario is the main reason for Korea’s success. In this article, a central hypothesis is developed - based upon the economic fundamentals of the Unicamp School of thought - defending the hypothesis that the advancement of the Korean economy, their deep structural transformation and upgrading in foreign trade, was only possible because of an initially favorable external context due to a set of historical characteristics that distinguish them from other economies of late industrialization as to aspects of domestic policy.

Keywords:
Economic development; Late industrialization; State; South Korea; Economic policy