Government Policy of Growth Stimulation at Different Stages of Economic Development (the Experience of the Republic of Korea)

The work studies the government policy of growth stimulation at different stages of economic development. Despite the problem of economic growth is well studied, there are at least two arguments that still keep the issue topical. First, there is relatively little research that stresses the importance of accordance between the government policy and the stage of economic development. Second, the economists still have not build an effective model of catching-up development. The author studies the experience of South Korea as this country using the set of government measures that fitted the stages of economic development has achieved a great economic success. The goal of the work is to develop a model of catching-up development, to test the model using the experience of Korea and to supplement the model with the factor of government policy in R&D and with the factor of the government policy in higher education. In the first chapter based on the literature review the author builds a general model of the government policy as a factor of economic development. In the second chapter the model is tested using the experience of South Korea. Then with the help of 4 regressions the model is supplemented. The main results of the work are the following. First, the general model of the government policy as a factor of economic development successfully describes South Korean economic history. Second, at the latter stages of Korean development the role of R&D was falling while the role of R&D of SMEs was higher than that of big companies. Third, at the latter stages of Korean development the role of higher education was surging.Moreover, using the case of South Korea the author showed the examples of successful (the policy in R&D) and failed (the policy in higher education) government policy strategies of economic growth stimulation.