Income Inequality and Development in East Asia: A Case Study of South Korea and Taiwan

Undergraduate Honors Thesis

Citations

Citeable URL: https://scholar.colorado.edu/concern/undergraduate_honors_theses/mg74qn79k

Abstract

This research explores the influence of globalization on income inequality in East Asia, with a specific focus on South Korea and Taiwan. Despite their similar development trajectories, these two countries have diverged in their levels of income inequality from 1980 to 2022. The research question seeks to understand why this disparity exists. Through the examination of the qualitative case studies of South Korea and Taiwan, this study aims to identify the contributing factors to income inequality in these countries. Preliminary analysis suggests that responses to global issues, industrial structures, and government interventions may play crucial roles in shaping inequality levels. By examining the top income shares of the top 1% earners in South Korea and Taiwan, this study aims to provide a deeper understanding of the economic disparities in these countries. The results highlight that the economic focus and priorities of these countries have the largest influence on income inequality, and this is largely motivated by national security considerations. The findings have important implications for policymakers and economists in promoting sustainable and equitable economic growth in countries that have similar development trajectories as South Korea and Taiwan.

Creator