CHAPTER 1
Background 1
CHAPTER 2
Literature Review: Theories of Economic Growth 5
1. Solow’s growth model 7
2. Estimating TFP 10
3. Literature on economic growth in Korea 12
CHAPTER 3
Input Factors for Economic Growth Rate
Decomposition 25
1. Gross domestic product (GDP) 27
2. Quantitative input factors 27
3. Qualitative input factors 32
4. Factor income share ratios 37
CHAPTER 4
Decomposition of Economic Growth, 1990-2010 39
1. Primal decomposition 41
2. Dual decomposition 42
3. Different education spending of income quantiles and
wage polarization 44
CHAPTER 5
Long-term Growth Projections Using the Dual Method
(2011 to 2050) 49
1. LTPNP’s rates of increase in economic growth and TFP 52
2. Long-term TFP projections using the dual method 53
3. Growth accounting predictions (2011-2050) 61
CHAPTER 6
Conclusion: Substitution Effect of the Quality and
Quantity of Labor 65
References 73
