The Effect of Knowledge and Skill-Based Production on Agricultural Employment: An Empirical Analysis in the Sample of So
Structural transformation is one of the most important topics, especially for developing countries. Considering the countries which achieved structural transformation, it has great importance to be transferred of production factors from the agricultural s
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The Effect of Knowledge and Skill-Based Production on Agricultural Employment: An Empirical Analysis in the Sample of South Korea Muhlis Can and Buhari Do˘gan
17.1 Introduction Structural reform is one of the most important topics of contemporary economics since the reform to be carried out in the field of economy has a vital role for the efforts of countries to grow. Therefore, developing countries try to implement structural reforms in order to reduce the development gap with developed countries and promote new policies for the manufacturing industry (Andreoni 2011). Structural transformation is closely related to orientation from the agricultural sector towards more productive sectors. Specifically, one of the most crucial obstacles to structural transformation is the specialization of the country in the primary product group, which has low productivity (McMillan et al. 2014). For example, Singapore and Pakistan export 133 kinds of products. However, in terms of income, Singapore is 38 times richer than Pakistan because of the “Knowledge” differences (Hausmann et al. 2011). Technological change is ensured by the accumulation of this “knowledge” factor (Kogler et al. 2013). In the early stages of development, countries are dependent on the sectors in which the primary product group is involved, while the dependency on these sectors decreases with the structural transformation (Srinivasan 2013). When the relationship between the success of structural change and growth is considered in the literature, it can be said that the first group that comes to mind is East Asian economies. The countries that have achieved this success are Japan, South Korea, Singapore, Hong Kong, China and Taiwan, respectively (Shrestha 2013). In this country group, thanks to the reforms carried out, the production factors have been directed from the M. Can (B) Department of Economics, Hakkari University, Hakkari, Turkey e-mail: [email protected] B. Do˘gan Department of Economics, Suleyman Demirel University, Isparta, Turkey e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 S. Sikdar et al. (eds.), Role of IT- ITES in Economic Development of Asia, https://doi.org/10.1007/978-981-15-4206-0_17
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low-paid and low-productivity agricultural sector to high-paying and high-efficiency manufacturing industry (Nabi 2010). Among the East Asian countries, South Korea is one of the most remarkable countries that achieved to reach success thanks to structural reforms (Felipe et al. 2010b; Jankowska 2012). The structural change in this country began with the five-year development plans laid down in the 1960s. Thanks to qualified human capital, the country has started to produce high value-added, technological products in many different sectors (Jankowska 2012). In this way, South Korea’s dependence on agriculture has decreased, and rapid and sustainable growth has been achieved (Felipe et al. 2013). It can be concluded that industrialization may have a negative effect on the agricultural sector incl
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