DSGE Analysis of Knowledge-Intensive Industry and South Korea’s Economic Growth

Abstract

Based on the synergy theory of economic growth and the theory of supply-side structural reform, this paper establishes a dynamic stochastic general equilibrium model group of economic growth in South Korea, does the in-depth research on urbanization, industrialization, informatization, agricultural modernization, foreign debt, population, assets-liability ratio, industrial capacity utilization ratio, financial expenditure, mid-to-high end industry, research and development personnel of university, funds from abroad, basic research funds, research and development personnel of private enterprise, technology trade, export, FDI, environmental protection funds/GDP, environment-related taxes, the proportion of high energy-consuming industries, fixed capital stock and so on, which affect economic growth, fiscal revenue, interest rate, exchange rate, non-performing loan, employment, fixed assets investment, human capital, science and technology, energy consumption, carbon emission, pollutant emissions, etc. , and establishes the relation models among them, constructs the DSGE equation group. MATLAB software is used to solve the models and simulate the simulation. Thus, it provides the experiences for the high quality of mid-to-high growth of China under the new normal condition.