Policy Reforms of the Eighties and Industrial Adjustments in Korean Economy - KDI 한국개발연구원 - 연구 - 보고서
본문 바로가기

KDI 한국개발연구원

KDI 한국개발연구원


Working Paper Policy Reforms of the Eighties and Industrial Adjustments in Korean Economy 1987.07.01


Series No. 8708

Working Paper Policy Reforms of the Eighties and Industrial Adjustments in Korean Economy #경제성장 #소비, 투자, 수출입 및 국제수지


  • KDI
This paper has probed problems and policy issues arising
from various aspects of industrial adjustment or changing trade
structure as highlights of the economic transition from the
seventies to the eighties. Fruitful findings were obtained from
the study with observations ranging from perceptions on the
making of a new industrial structure and national business
management behavior to an analysis of reshaping industrial
incentive schemes and newly staged macroeconomic

The manufacturing sector steadily recovered in the eighties
from the recession caused by the second oil shock in 1979. The
rapid expansion of more technologically upgraded, heavy
industries continued its advance in the eighties leading into the
dominance of heavy industries in the manufacturing activities.

The debt-equity ratio of the manufacturing sector has
declined significantly in the eighties, and growing importance has
been placed on self-financing by manufacturing firms. Reliance
on overseas financing has decreased due to repeated currency
devaluations and the interest rate hike in the world financial
markets. A computation of profit rates across industries and a
comparison of their distribution between the seventies onward to
the eighties revealed a significant decline in the dispersion range
of the distribution in the eighties, implying improved flexibility
in industrial adjustment and reinvigorated functionings of price

New patterns of rational behavior have emerged in the
management of businesses in the eighties. Stress has been
placed on technological developments and R&D activities.
Marketing efforts habe been reinforced, and product
differentiation and new product development habe become
integral to business strategy. Efforts to reduce production costs
habe increased.

The credit for such economic achievements should be given
to the price stabilization in the eighties, which contributed to the
drastic reduction of rent-seeking activities and the reinforced the
functionings of price mechanisms so as to increase flexibility in
industrial adjustment, encourage rational behaviors of firms and
raise the competitiveness of domestic industries. The reshaping
of incentive schemes from the industry-specific approach to the
functional one in tax and tariff institutions seems to have
reinforced the functionings of price mechanisms through the
reduction of rent-seeking activities.

The realignment of investment duplications or excessive
investments of heavy-chemical industrial projects helped release
resources to secure industrial adjustments. Also, substantial heed
should be paid to the importance of sustained efforts to provide
industrial infra-structure, industrial sited and surrounding
facilities as an important part of industrial incentive schemes,
contributing to the strengthened competitiveness of domestic
industries and the growing dominance of the heavy industry

Repeated attempts of currency devaluation seem to habe
contributed to the enhancement of domestic industries and
facilitated smooth industrial adjustments and import liberalization.
Successive attempts of launching import liberalization turned out
to have yielded various rational behaviors from firms and have
induced industrial adjustments according to the doctrine of
dynamic comparative advantages. Import-substitution bias,
however, still remains in the incentive schemes inherent in the
trade policy institutions, and import liberalization program has
not ben implemented to the fullest extent.
Ⅰ. Introduction
Ⅱ. An Overview of Policy Reforms
Ⅲ. Industrial Growth and Structural Adjustment
Ⅳ. Investment Incentive Schemes
Ⅴ. Price Stabilization and Import Liberalization
Ⅵ. Concluding Remarks
관련 자료 ( 9 )
  • 주요 관련자료
  • 같은 주제자료

한국개발연구원의 본 저작물은 “공공누리 제3유형 : 출처표시 + 변경금지” 조건에 따라 이용할 수 있습니다. 저작권정책 참조

미디어운영팀윤정애 전문연구원 044-550-4450
이 페이지에서 제공하는 정보에 대하여 만족하시나요?
보안문자 확인

무단등록 및 수집 방지를 위해 아래 보안문자를 입력해 주세요.

KDI 직원 정보 확인

담당자 정보를 확인해 주세요.


소중한 의견 감사드립니다.


잠시 후 다시 시도해주세요.

Join our Newsletter

매일 새로운 소식으로 준비된 KDI 뉴스레터와 함께
다양한 정보를 확인하세요.