FREE MARKET ECONOMY AND THE EFFECT OF MACROECONOMIC FACTORS ON GROWTH: THE CASE OF SOUTH KOREA

The aim of this study is to empirically analyze the impact of capital stock, employment level, human capital, total factor productivity, openness policy, government spending and household consumption on growth in South Korea between 1965 and 2017. Because of this reason, regression analysis was performed in the time series to observe the effects of variables. We have been reached that the effect of trade openness policies on growth was insignificant among the independent variables at the result of regression analysis. The other results have shown that total factor productivity, labor, and capital have the greatest impact on economic growth, while the variables with the smallest impact are public expenditures, consumption expenditures, and human capital, respectively.