GDP vs genuine progress quantification of economic performance in South Korea and Malaysia


  • Mastura Hashim International Islamic University Malaysia
  • Imtiaz Mohammad Sifat International Islamic University Malaysia
  • Azhar Mohamad International Islamic University Malaysia



Malaysia and South Korea, successful graduates of Asian Financial Crisis, employed different paths to recovery via Capital Control and IMF bail-out respectively. This paper tracks recovery trajectories of the two nations via orthodox and emergent growth indicators: GDP and GPI. We report unemployment, open-trade, fixed capital accumulation, and prior crisis to be influential determinants of both metrics, while credit and foreign exchange rate lack significance.

Author Biography

Azhar Mohamad, International Islamic University Malaysia

Assoc. Prof. Dr Azhar MohamadDepartment of FinanceKulliyyah of Economics and Management SciencesInternational Islamic University Malaysia53100 Kuala Lumpur, MalaysiaTel: +603-6196 4752


Bleys, B., & Whitby, A. (2015). Barriers and opportunities for alternative measures of economic welfare. Ecological Economics, 117, 162–172. doi:10.1016/j.ecolecon.2015.06.021

Feeny, S., Mitchell, H., Tran, C., & Clarke, M. (2013). The determinants of economic growth versus genuine progress in South Korea. Social indicators research, 113(3), 1055-1074.

Othman, J., Jafari, Y., & Sarmidi, T. (2014). Economic growth, foreign direct investment, macroeconomic conditions and sustainability in Malaysia. Applied Econometrics and International Development, 14(1), 215-226.

Posner, S. M., & Costanza, R. (2011). A summary of ISEW and GPI studies at multiple scales and new estimates for Baltimore City, Baltimore County, and the State of Maryland. Ecological Economics, 70(11), 1972–1980. doi:10.1016/j.ecolecon.2011.05.004

Talberth, J., & Bohara, A. K. (2006). Economic openness and green GDP. Ecological Economics, 58(4), 743-758.

Talberth, J., Cobb, C., & Slattery, N. (2007). The Genuine Progress Indicator 2006: A Tool for Sustainable Development. Redefining Progress, (510), 1–31.

Zumkehr, H. J., & Andriesse, E. (2008). Malaysia and South Korea: A decade after the Asian financial crisis. Chulalongkorn Journal of Economics, 20(1), 1-26.




How to Cite

Hashim, M., Mohammad Sifat, I., & Mohamad, A. (2018). GDP vs genuine progress quantification of economic performance in South Korea and Malaysia. Economics and Business Letters, 7(4), 169–178.