South Korean Economic Uniqueness Between Economic Growth, Consumption and National Development in South Korea

English

Abstract

This study aims to examine the interrelationships between South Korea's household consumption, national development as measured by government spending, and economic growth. This research is a quantitative research using secondary data from the world bank. We use a research period from 2000 to 2021. We choose an autoregressive vector to simulate a causal relationship between variables. We found that South Korea is very unique among other Asian countries. The decline in domestic consumption actually boosted economic growth. This is a unique thing that happened in South Korea. However, the continued increase in economic growth followed by increasing national development was not matched by an increase in public consumption. This is quite unique and requires further investigation.