Global Center for Economic Miracle  ·  gcemiracle.org  ·  Est. 2026

The Science of
Economic Miracle

From Venice to the World

Economic miracles are not accidents of history.
They are the predictable consequence of Economic Differentiation — a universal institutional principle that separates co-prosperity from polarized stagnation, confirmed across 73 countries, eight decades, and five institutional groups.

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73
Countries in
Global Panel
30+
Years of
Research
6
Books
Published
8
Country
Case Studies

Our Mission

A New Paradigm for World Prosperity

The Global Center for Economic Miracle (GCEM) advances the General Theory of Economic Development (GTED) as the new paradigm of economic science — demonstrating through rigorous research that Economic Differentiation, not Economic Egalitarianism, is the universal path to shared prosperity.

Founded by Prof. Sung-Hee Jwa, originator of GTED, GCEM invites economists, policy makers, and researchers worldwide to test, extend, and apply the Corporate Economy framework to their own national contexts.

We believe economic miracles — from Venice in the 12th century to East Asia in the 20th — are not mysteries. They are the reproducible result of institutions that reward performance differentially. Our mission is to make that science available to every nation.

"Adam Smith never went to Venice. Had he done so, economics might have been born as a corporate economy science in 1776. It is not too late to complete what Smith should have written."
— Sung-Hee Jwa, Director, GCEM
The Corporate Economy (book manuscript in preparation)

The Theory

The General Theory of Economic Development

GTED provides the first unified framework explaining why some economies achieve co-prosperity while others stagnate — grounded in a single institutional parameter θ (the ED/EE balance) and validated globally.

PILLAR 01

Economic Differentiation (ED)

Treating differences differently — rewarding performance through markets, corporations, and government policy. ED generates co-prosperity: rising corporate assets drive growth and reduce inequality simultaneously.

PILLAR 02

Corporate Assets as National Capital

Corporate assets (CA) — the consolidated balance sheets of all corporations — replace the incoherent K of neoclassical theory. CA resolves the Cambridge Capital Controversy through the Fisher identity CA ≡ y/r.

PILLAR 03

The θ Parameter

θ indexes the institutional ED/EE balance. High θ → co-prosperity. Low θ → polarized stagnation. The Policy-θ Transmission Mechanism shows all policies work through θ via short-run (DSGE) and long-run (GTED) channels.

PILLAR 04

The Corporate Economy Trinity

Markets (performance selection) + Corporations (synergy incubation) + Government (reinforcing ED while remedying market failures) must operate in concert. Any EE drift in one pillar weakens all three.

PILLAR 05

Two Stable Equilibria

Co-prosperity: CA↑ → y↑ → A↑ (positive feedback). Polarized stagnation: CA↓ → y↓ → A↓ (negative feedback). Korea Phase 1 vs. Phase 4, Japan 1955–73 vs. Lost Decades — both confirmed empirically.

PILLAR 06

Beyond DSGE: A New Policy Paradigm

DSGE captures short-run macro price adjustment (Layer 1) but misses institutional dynamics (Layer 2). θ is the true deep parameter Lucas demanded. CA revives structural macroeconometric simultaneous equation models.

Research Library

All Resources — Freely Available

Every document produced by GCEM is available for download without restriction. We believe open access is essential to the global dissemination of GTED.

Book Manuscript
The Corporate Economy: A General Theory of Economic Development
Book manuscript in preparation. Includes complete theoretical framework, empirical strategy across 8 country cases, and 73-country global panel.
Download PDF →
Working Paper · GCEM WP #001
Beyond DSGE: Corporate Assets, the θ Equilibrium, and the Revival of Structural Macroeconometric SEMs
Challenges DSGE at two levels; introduces Policy-θ Transmission Mechanism. Target: Macroeconomic Dynamics.
Download PDF →
Working Paper · GCEM WP #002
Corporate Assets and the Cambridge Capital Controversies: A Bridge between Production Theory and Asset Pricing
Resolves Robinson's circularity via Fisher identity CA ≡ y/r. Under review: Cambridge Journal of Economics.
Download PDF →
Working Paper · GCEM WP #003
The θ Determinants Framework: Micro, Macro, Political Economy, and Historical-Cultural Factors
Complete four-domain framework for the institutional parameter θ with empirical proxies, figures, and three integrating principles.
Download PDF →
Journal Article · Published
What Causes Polarized Stagnation, Corporate Economy, or Welfare State?
Economics & Politics (2024). Top 10% most-viewed 2024. Wiley Top Viewed Article 2025 recognition. Korea empirical evidence: N=52, 1969–2020.
View Article →
Book Outline
The Corporate Economy — Book Outline v9: Complete Chapter Framework
Full 16-chapter outline including all June 2026 theoretical developments: Policy-θ paradigm, θ determinants, GTED vs. DSGE, Industrial Revolution evidence.
Download PDF →

GCEM Working Paper Series

Latest Research

All working papers are freely downloadable. We invite researchers worldwide to engage, critique, extend, and apply.

001
Beyond DSGE: Corporate Assets, the θ Equilibrium, and the Revival of Structural Macroeconometric Simultaneous Equation Models
Sung-Hee Jwa · June 2026 · Target: Macroeconomic Dynamics
NEW
002
Corporate Assets and the Cambridge Capital Controversies: A Bridge between Production Theory and Asset Pricing
Sung-Hee Jwa · 2026 · Cambridge Journal of Economics (under review)
UNDER REVIEW
003
American Growth and Distribution: A Corporate Economy Perspective
Sung-Hee Jwa · 2026 · Journal of Economic Behavior & Organization (submitted · JEBO-D-26-01585)
SUBMITTED
004
The Three Koreas' Institutional Experiment in Economic Development: Economic Differentiation versus Egalitarianism?
Sung-Hee Jwa · 2026 · World Development (submitted)
SUBMITTED
005
Chinese Growth and Distribution: A Corporate Economy Perspective from Chinese Classical Thought
Sung-Hee Jwa · 2026 · Structural Change and Economic Dynamics (submitted)
SUBMITTED
SHJ
Prof. Sung-Hee Jwa
Founder & Director, GCEM
Visiting Professor, Ajou University

Founder & Director

Three Decades Building the Corporate Economy Science

Sung-Hee Jwa is the originator and sole developer of the General Theory of Economic Development — a research programme three decades in the making that The Corporate Economy consolidates into its definitive statement.

Trained at UCLA under Michael Darby (Ph.D. 1983) and as Economist at the Federal Reserve Bank of Minneapolis (1983–85) alongside Sargent and Prescott, Jwa then spent thirty years at the centre of Korean economic policy — through miracle, crisis, and stagnation — building the institutional alternative to the framework he had been trained to use.

UCLA Ph.D. 1983 Supervisor: Michael R. Darby
Federal Reserve Bank of Minneapolis Economist 1983–1985
Korea Development Institute Senior Fellow 1985–1997
KERI President 1997–2005 Korea Economic Research Institute
6 Books Published Edward Elgar · Palgrave-Macmillan
Top Viewed Article 2025 Wiley · Economics & Politics

Call for Research

Join the Economic Miracle Network

We invite economists, policy researchers, and graduate students worldwide to apply the GTED framework to their national contexts. Economic miracles are reproducible — help us prove it.

Country Studies

Apply the GTED empirical framework (GCEM WP methodology) to any country. We provide data guidance, peer review, and publication support through the Working Paper Series.

Theoretical Extensions

Extend the θ determinants framework, the Policy-θ Transmission Mechanism, or the CA measurement methodology. All theoretical work is welcome for GCEM Working Papers.

Policy Applications

Translate GTED into actionable ED Policy Agenda for your country group — advanced democracies, middle-income, or developing economies. Policy briefs welcome.

Contact GCEM to Collaborate