Economic Transformation in Korea: Rapid Growth without an Agricultural Revolution?

Abstract

In this article, we analyze investment in Korea’s agricultural sector during colonial rule. We start by constructing a data series for the period 1920–40 for both North and South Korea. Estimations of production functions using these data show that the returns to investment in agricultural inputs were significant during this period. The analysis shows that contrary to the prevailing view on Korean development, Korea did not industrialize without prior investment and corresponding productivity gains in the agricultural sector.