- Volume 58 Issue 3
The purpose of this study is to investigate the empirical relation between economic growth and poverty in Korea. Especially, the focus is put on exploring if there are any changes in the relation of economic growth and poverty. From 1982-2004 Korea Urban Household Survey, I constructed the annual data of poverty rate. I also obtained the annual data of the real GDP and the unemployment rate from the National Statistical Office. Using these annal data of the poverty rate and the macroeconomic performance, I analyzed the relation of them. As the result, I found that the macroeconomic growth have played very important role in reducing the poverty rate in Korea. Since 2000, the macroeconomic growth have still worked as an effective instrument for poverty reduction. However, there have been poverty increase that has not been explained by the macroeconomic growth since 2000. Based on these results, this paper suggests that the anti-poverty strategy in Korea should be changed from the old strategy emphasizing only economic growth to the new strategy pursuing both economic growth and social security simultaneously.
economic growth;macroeconomic performance;poverty;social security