ABSTRACT

Distribution is the result of economic growth. Thus, this distribution is to be analyzed in terms of a country’s particular development policy and growth patterns in order to perceive the causal relationship between growth and distribution. In the course of industrial development, the economic resouces have been substantially reallocated from the agricultural sector to the nonagricultural sector, transferring a large portion of the labor force, withdrawing the cultivated land from the agricultural sector for urban-industrial usage, and subsidizing massive financial capital to the industrial sector. In addition to the spiral wage-inflation effect due to the drastic increase in industrial capital, the poor agricultural development in Korea led to a relatively earlier advent of economic turning point. The economic preconditions for an improved distribution of income were considerably more favorable in Taiwan than in Korea. The economic preconditions were unfavorable to the economic growth pattern in Korea.