“Miracle Growth” in the Twentieth Century––International Comparisons of East Asian Development

Abstract

Using Maddison’s data, we compare levels and growth rates of real GDP per capita between Korea and Taiwan, along with Japan, and 53 other countries in the world, covering the prewar and postwar periods (1901–92). Both countries, along with Japan, experienced very rapid growth in both periods, especially Korea, whose growth rates ranked third or fourth in the prewar period. After WWII, however, Korea fell steadily below Taiwan, and both fell continuously behind Japan until 1970 when they simultaneously began to catch up. Finally, using Perron’s test, we analyze structural changes or continuity between the two periods. Both domestic and international economic conditions are examined to explain the findings.