Growth and technical change in Korean agriculure

Abstract

The principal task facing the Korean economy is to further increase total farm output to meet the requirements for farm products. This study attempts to find economic means of carrying out a further increase in the total farm output. In order to carry out this work, this study attempts to survey the sources of the past growth in total farm output with reference to the measurement of technical change and factor input-output relationships based on the aggregate production function. An attempt is made to formulate five aggregate production function models involving various factor inputs, and to provide empirical estimates of their paramenters. The various factor inputs are measured as land, labour and other input. In particular, an attempt is made to estimate the magnitude of unbiased technical change and to establish the role of technical change as a source of the growth in total farm output. The quality of land is measured through the relative proportions of upland and paddy field and irrigated land input; and also the quality of labour input through the schooling level of farm labour forces. These quality adjustments of land and labour input are used in an attempt to explain apparent technical change. From the empirical results estimated by the aggregate production function models, it is evident that an unexplained residual or output augmenting technical change remains as an important source of the past growth in total farm output, though apparent technical change occurs through the effects of education on labour input and through the improvement in the irrigated land input. Show more