| This dissertation examines two frequent features of rapid economic growth: the persistent external imbalance and the upsurging price of land. The external imbalance is studied in the context of the historical growth experience of Korea during the last three decades. The observed dynamic path of the external imbalance of Korea since the 1960s exhibits an interesting pattern of volatility and persistence. The time path of the balance of payments is modelled as the equilibrium outcome of dynamic aggregate behavior of economic agents in a small-scale macro-model of the Korean economy. The growth rate, rates of national saving and domestic investment, and the balance of payments, are endogenous. The model is estimated using 2SLS, 3SLS, and FIML estimation methods.; The proximate causes of the transition from a balance of payments deficit to a surplus and the shorter run fluctuations are found in changing demographic structure, economic policies--in particular the financial policy--and economic growth itself. The dynamics of the balance of payments in Korea are, however, more complex. They are also driven by productivity shocks, inflation, and the changing world economic environment, all of which work indirectly through the equilibrium growth rate determination process.; The second part of this dissertation studies the behavior of the price of land in a long run context of the overlapping generations model. Land is considered as a production factor and store of wealth in addition to capital. The open economy version of the overlapping generations model formalizes some technological and behavioral conditions under which the price of land would behave in the economic growth process. We also look into the patterns of the surging prices of land in Japan over the last four decades, contemplating on the possible causes of the unusual behavior of land prices. Japan's land tax system is also evaluated in terms of the effect on land prices. |
