EXPORTS AND GROWTH: AN ECONOMETRIC ANALYSIS FOR KOREA

Abstract _ This paper dicusses the sources of rapid economic growth in Korea in recent times and ~heir economic implications by means of three types of econometric tests based on the modern theory of cointegration, the dominant role of demand over supply and the significant degree of economies of scale due to the spillover effects of human capital and of tElchnological diffusion. The empirical growth profile of Korea in recent times seems to vindicate some of the major tenets of the new growth theory. Key words: Exports, economic growth, cointegration, demand dominance, increasing returns to scale