Gdp, Real Gdp and Gdp Growth of Korea from 1960 to 2014

Section 1

GDP, real GDP and GDP growth of Korea from 1960 to 2014

The Gross domestic product (GDP) is the total of consumption, investment, government spending and net export, which can measures of the total final products and services in that time of country.

[pic 1]

Back in 1960 Korea was one of the poorest countries in Asia, but with the new policy of government South Korea’s economy continue growth, it was 2.36 in 1961 to 1410.38 in 2014. As we can see in the graph there was a rapid growth form 1984 to 2014. Same with other countries South Korea have to significant decrease in GDP in 1998 and 2009 because of Asian financial crisis and the worldwide Financial Crisis of 2009.

The Real Gross domestic product measures quantities of actual goods and services, which change over time.

Real GDP=Nominal GDP/ Price level

[pic 2]

2009 was picked for the year base of real GDP in South Korea. According to the graph Real GDP and GDP move together really well. In addition, price levels has increase from 1990 to 2010 and it was little bit decrease in last 2 years 2011 to 2014( Real GDP line below GDP 2011 to 2014)

The Real Gross domestic growth rate just measures how fast or slow the GDP growth in a country.

[pic 3]

South Korea Real GDP growth rate average was almost 13% from 1960 to 2014. There was two significant dropped in the graph which was 1961 and 1998 because of rebellion of Park ChungHee and Asian financial crisis. However South Korea recovered really well after that dropped: 40.7% in 1962 and 29.1% 1999 because they have an export oriented economy. The fact that we all know about the famous of Korea’s products like: Sangsung, Hyundai, and the entire make up products.

Section 2

yt= Akt0.3        

A: is total factor productivity

K: represents capital per capita

TFP: represents all the factor that important to the economic growth

Solow Growth Model explains how saving rate and population growth determine capital accumulation, which turn determine economic growth

[pic 4]

        Capital per capita in South Korea has been stable increase seen 1961 until 2014. However there was two drop in total of factor productivity in 1998 and 2009, again because of Asian Financial Crisis in 1996 and the World’s Financial Crisis of 2008. It was also make the rapid drop in Y, but the Y output per capita of Korea increases year over year really stable (except for 1998 and 2009)