This paper is an analysis of the Korean public’s perception on foreign aid and how their attitudes have changed over time, through a face-to-face survey involving 1,000 respondents. The survey questions include various aspects of foreign aid such as motives for aid giving, level of support for aid, priorities in aid policy, effectiveness of aid as well as access to relevant information. To find the determinants of their attitudes and perceptions on aid, the paper examined the relations between individual characteristics such as age, income level, education and the level of participation in volunteer activities; with their response patterns. It also reviewed the results of past surveys conducted in Korea as well as in other donor countries such as EU to gain a more comprehensive understanding of the Korean public’s opinion on aid within various time series and country context.

Overall, the Korean public appears highly supportive of foreign aid. Case in point, nearly 90 percent of respondents expressed support for the Korean government for providing aid to developing countries, which is a significant improvement compared to the 62 percent recorded in 2005. Despite the increasing support, the level of awareness on aid and global development initiatives such as MDGs among the Korean public is relatively weak. Particularly, the younger generation showed the lowest level of awareness and it provides a clear policy implication for education and programs for raising awareness for this age group. The unique characteristic of Korea as a ‘former-recipient-to-donor’ influenced the public opinion, especially older generations, as they emphasized that Korea’s provision of aid is to return what it had received from other countries in the past. But this particular background is an exception, as the Korean public seems to be driven more by humanitarian and egalitarian motives while economic interest still influences Korea’s ODA policy in practice.

In terms of policy priorities for foreign aid, sub-Saharan Africa attracted the most attention, followed by various Asian regions, in the provision of Korean aid. As for the sectors, the survey result showed that majority of Koreans think that government aid is most effective in the form of assistance in social and economic infrastructure, and most of the Korean public maintains positive attitudes concerning Korea’s ODA. Among those who are skeptical about Korea’s contributions to developing countries, there are concerned over the capacity of developing countries to manage the aid received as well as efficiency and effectiveness of the Korean government’s aid delivery system.

As the newest member of the DAC, Korea has initiated various reforms to advance the volume and quality of its aid. It is thus critical to monitor the public opinion on foreign aid to gain support and pursue the Korean government’s ambitious aid policy goals in the future. While a high level of public interest and support on ODA is an encouraging sign, there is still much to do for the Korean government. It needs to implement better-targeted and strategic public awareness programs considering that the awareness level is closely related to the support level. Also, it needs more rigorous policy measures to boost its aid efficiency and effectiveness lest public confidence decline for the lack thereof, and the also ensure that the information be widely shared.

The world’s economies are actively promoting “green growth” as the way to overcome the global economic crisis, the energy crisis, climate change, and to gain momentum for new growth.
First of all, the effects of climate change intensifying around the world has given urgency to the task of coordinating global action among countries. Also the volatility seen in wildly fluctuating energy prices is fueling fears of a global energy crisis due to temporary energy imbalance and energy speculation. Until now, world economic development was based on overwhelming dependence on fossil fuels. However, the limited fossil fuel reserves and environmental pollution are putting this type of development to an end. Furthermore, the current global financial and economic crisis provides legitimacy for a more active investment in the green energy sector for many countries, to boost growth momentum and reduce dependence on foreign fuels.
Meanwhile, despite the withdrawal from the Kyoto Protocol, the United States acknowledged the need to develop the clean energy sector since the late 1980s. Accordingly, the U.S. government established a national energy strategy supporting research and technology development in clean energy and eco-friendly cars as a potential source of industrial growth.
Energy technology is a combination of a diverse range of technologies, which necessitates long-term, massive investments. In case of developed countries, federal/central governments can play a leading role by implementing national energy plans to support energy technology development until its commercialization and employment. In case of the United States, the Department of Energy is in charge of the “National Energy R&D Portfolio.” In February 2003, the Bush administration announced the “Hydrogen Fuel Initiative” which provided $1.7 billion to develop hydrogen-powered fuel cells, hydrogen infrastructure and advanced automotive technologies over the next five years. The Bush administration continued its efforts to reverse America’s growing dependence on foreign oil. In the 2006 State of the Union Address, President Bush announced a 20% increase in clean-energy research and revealed his plan to make ethanol practical and competitive within six years.
President Obama, in the wake of the global financial crisis, is continuing US efforts to develop clean energy technology. The climate change bill could reset the US government’s approach on green growth, being one of the legislations President Obama heavily advocated. In June 2009, the bill had passed in the House of Representatives. However, its chances of passing the Senate vote are slim.
Despite setbacks in enacting the climate change bill, President Obama fully recognizes “green growth” as America’s new engine of growth. In the 2011 State of the Union address, President Obama showed a firm determination to continue investment in clean energy technologies. In doing so, President Obama set a new goal: that by 2035, 80% of America’s electricity will come from clean energy sources such as wind, solar, nuclear, clean coal and natural gas. Detailed measures to achieve this goal was outlined, which includes introduction of 1 million electric vehicles on the road by 2015 and the elimination of $4 billion subsidies to oil companies.
Canada already recognized that low-carbon green growth is essential to sustainable growth. Since 2005, the Canadian government actively began investing in clean energy and technology. Specifically, the Canadian government is implementing policies related to greenhouse gas reduction, environment technology development, infrastructure investment, and environmental protection. Above all, the Canadian government is focusing on the renewable energy development, such as achieving international competitiveness in hydrogen production technology and fuel cell technology. In the 2007 budget, $2 billion was allocated for renewable energy development alone. Considering Canada’s dynamic low-carbon green growth action, close attention to Canada’s growing clean energy market is needed for better cooperation in the near future.
In addition, Canada is a well known eco-friendly country, its attitudes towards the environment driven by the close attention of its citizenry to environmental problems and backed up by strict government regulations. Environmental issues tend to be the major campaign issues during the election period, and federal and local governments have systematic evaluation processes to prevent environmental pollution from fossil fuel exploration. Recent opposition on the oil sand development by native Canadians and strict federal government regulations have given rise to much uncertainty in the Canadian oil industry. Yet, there are assumptions that the Conservative Party of Canada, the majority party, is implementing Canada’s ‘ecoAction’ plan−Canada’s national energy plan−to merely avoid criticisms that the party is not attentive enough on environmental issues. But regardless of the ruling party, it is the direct support to the citizens which the Canadian government has aimed at, while simultaneoulsly reducing industries’ dependence on government support.
In tandem with the green growth movement in the global community, Korea is also adopting policies to adapt to climate change and implementing “green growth” for sustainable development. As in the case of the US and Canada, major economies are designing national green growth strategies for sustainable growth with special focus on renewable energy industries. Green growth has now become vital for development of the world’s nations, and is no longer a matter of choice. Considering that Korea has not yet reached the levels of the developed countries in renewable energy in terms of technology and power-generation capacity, the Korean government should continue to provide full support to Korea’s renewable energy industry via tax credits and investment incentives under sustainable national development plans.

I. Introduction

II. Literature Review

III. Original Sin and Capital Volatility

IV. Data and Model
1. Data
2. Stylized Facts
3. Empirical Model

V. Empirical Results
1. Effects of Liberalization on Volatility for All Countries
2. Effects of Liberalization for Groups with and without Original Sin
3. Which Matters, Original Sin or Institution?

VI. Conclusion

References

Appendix

Over the last three decades the volatility in international capital flows has shown an increasing trend in both emerging economies and advanced countries. This study investigates how capital account liberalization affects capital flow volatility using 34 country panel data. Overall, we find that the level of financial openness increases capital volatility. However, after we divide our panel data based on whether or not a country can borrow abroad in its own currency, namely ’original sin’, the effect of financial openness appears differently in each group. While in original sin free groups capital openness has no significant effect on capital volatility, it increases the volatility significantly in original sin groups. Also when the sample is limited to countries which established good quality in their institutions, the difference remains between the two groups. It means that the different effects of capital openness on the volatility should be attributed to differences in international status of currencies rather than in institutional quality. This finding suggests that emerging economies whose currencies are not internationalized should be more cautious of capital account liberalization.

I. Introduction
II. The Case of Upstream Subsidies
1. Case Study in a Nutshell
2. Countervailing of Indirect Subsidies under WTO Disciplines
3. Pass-Through Analysis
4. Arm’s Length Transactions

III. The Case of Privatization
1. Case Study in a Nutshell
2. Company vs. Owner
3. Fair Market Price

IV. Clarification Initiatives and Implications for Korea
1. Overview of Proposals
2. Some Implications for Korea

V. Conclusion

References

Indirect subsidization of domestic industries can occur where, for example, a financial contribution is provided to one entity but the associated benefit goes to another. This may materialize where (1) a financial contribution to an upstream producer results in a benefit to a downstream producer, or (2) privatization of a subsidized state-owned enterprise leads to the transmission of the subsidy to a post-privatization enterprise. A number of dispute cases initiated in the World Trade Organization have addressed both situations and resulted in substantial jurisprudence that cast light on some controversial issues on indirect subsidies. This paper examines the main findings made in case law, discusses subject-related Doha Round proposals and their possible implications for Korea.

The Republic of Korea is currently trying to engage Turkmenistan, which has gigantic natural gas resources, in order to promote cooperation in the area of energy resources development. However, Korea’s chances of energy resources development cooperation with Turkmenistan are limited, because of higher level of technology possessed by Western countries in gas extraction and Chinese activities involving provision of enormous loans to Turkmenistan.
Turkmenistan, like other energy rich countries, is attempting to change its energy-dependent economic structure and to develop manufacturing industries. Korea’s participation in energy resources development in Turkmenistan would require that Korea address Turkmenistan's need for industrial development.
The solar energy industry is one of the fastest growing among industries in general, and Korea intends to promote it as a Green Growth industry. The solar energy industry includes several sub-industries such Concentrated Solar Power (CSP) and Photovoltaic (PV) industries. The PV industry can be further subdivided into polysilicon manufacturing, solar cell manufacturing and etc.
Turkmenistan has much potential for the development of a solar energy industry. First, with Uzbekistan, Turkmenistan has the biggest solar resources among the former Soviet countries, as the level of insolation in southeastern Turkmenistan is similar to a number of countries in the Middle East. Second, Turkmenistan already has markets for its electricity exports such as Turkey, Iran, and other countries in the vicinity. Also, Turkmenistan is relatively close to the EU, with a large demand for renewable electricity. The fact that Turkey will be connected to Europe’s electricity network presents an added advantage in this regard. Third, the price of electricity, the core factor with respect to the competitiveness of the PV industry, is very low. Fourth, potential for the development of the domestic PV market in Turkmenistan is high, because it needs to supply small distributed generation systems for about 73% of the population for whom power is not supplied through the electricity network.
Given the above, there is great potential for industrial cooperation between Korea and Turkmenistan, especially in the PV industry. The global PV market is becoming polarized, with a market for low-efficiency, cheap solar cells on one side and the one for highly efficient expensive solar cells on the other. Though Korea currently possesses the requisite technology, it is in need of a market. Turkmenistan is both able to export electricity and offers the cheapest price for power. Also, it has the possibility to develop the domestic PV market.
Korea and Turkmenistan will thus need to cooperate with each other in the following. First, they need to construct a 150MW ISCC (Integrated Solar Combined Cycle) power plant as a pilot project with Turkey in order to export electricity to Turkey in the short term. In the long term, pure CSP (Concentrated Solar Power) plants will need to be built in order to export solar power to the EU. 
Second, in the PV industry, Turkmenistan needs to try to develop polysilicon manufacturing industry based on cheap electricity. Korea needs to cooperate with Turkmenistan in the polysilicon industry by contributing high technology. For the mid term, Turkmenistan needs to develop a solar cell manufacturing industry based on domestic demand for small (2~4 kW) solar power generation systems.
Third, Korea needs to provide export loans(about 1 bil. dollars) to enable Turkmenistan to develop the previously mentioned industries. Approximately 500~600 mil. dollars may be needed to develop a polysilicon manufacturing factory with an annual production capacity of 6,000~7,000 tons. And another 440 mil. dollars would be needed to build a 150 MW ISCC power plant.
If such cooperation is indeed realized, great synergy effects for both Korea and Turkmenistan can be expected. Korea can support its solar industries as green growth industries by providing production sites and markets for the related companies, while Turkmenistan can foster new manufacturing industries with world class competitiveness, which would help the latter diversify its industrial structure. Also, based on the deepened economic relationship, Korea may participate in Turkmenistan’s energy resource development.

I. Introduction
II. Literature Survey

III. Data and Methods

IV. Estimation
1. Basic Estimation Results
2. Domestic Debt Ratio Puzzle
3. Domestic Debt Thresholds by Individual Country

V. Concluding Remarks

References

This paper analyzes the determinants of domestic public debt crisis. There have been many studies that examine the causes and consequences of external debt crisis. However, little attention has been put to domestic debt crisis and the importance of it has been neglected. This is mainly due to two facts: First, the number of occurrence of the domestic debt crisis is less than that of external debt crisis, and second, the consistent database has not been constructed. Recently, many attempts have been made to construct database for domestic debts and domestic debt crises. This paper uses the database established by Panizza (2008), and tries to analyze the determinants of domestic debt crisis. We apply the panel probit model to determine the factors that cause domestic debt crisis and to find the debt thresholds of individual countries. The results of the paper show that many macro variables are important determinants of domestic debt crisis. Also, unless important macro variables are controlled, domestic debt ratio variable did not have significantly positive coefficient. This implies that the status of the macro variables determines the tolerable levels of domestic debt ratio, and that the countries have quite different levels of domestic debt ratio thresholds depending on their macroeconomic fundamentals. Thus, unless these factors are controlled, the comparison of domestic debt ratios between countries is meaningless.

The Trilateral Cooperation Secretariat that has recently convened in Seoul was a reminder of the purpose of this research, which is to discuss the role and functions of the Secretariat in further expanding the scope of trilateral cooperation and to ultimately achieve regional economic integration over the long term. The main benchmark for reference for this research is the Commission of the European Communities. In the 1950s, despite its political and security issues, Europe successfully established the ECSC, EURATOM, and the EEC under strong political leadership. Different from APEC and ASEAN, supranational authority were given to these international organizations which enhanced the enforcement of industrial cooperation programs and eventually led to the founding of the EU. Thus, the Trilateral Cooperation Secretariat should gradually expand its current functions and roles and ultimately pursue supranational authority. This should enable the Secretariat to respond more efficiently to factors that hinder regional integration and better contribute to economic cooperation in Northeast Asia. In this respect, this research presents guidelines for the Secretariat to enhance its roles and functions as follows.
First, the objectives of the Trilateral Cooperation Secretariat need to be more concrete and future-oriented, and the objectives must be stipulated within the joint statement of the Trilateral Summit. Under clearer objectives and supranational authority, the Secretariat should be able to reinforce cooperation among the three countries. In addition, the Trilateral Cooperation Secretariat needs to build a basis for controlling industrial cooperation programs among the three nations, as did the Commission of the European Communities. Over the long term, the Trilateral Cooperation Secretariat should transform into an executive commission as it expands its roles and functions.
Second, the Secretariat should facilitate regional integration by actively implementing the current and potential industrial cooperation programs.
Third, the Secretariat should focus on its role in achieving further institutionalization in regional economic cooperation. In the case of Korea, Korea's exports to China and Japan are rising continuously; thus the Korean government must make efforts to establish policies to increase market access by better protecting intellectual properties and to alleviate non-tariff barriers.
Fourth, the Secretariat needs to develop various policies and industrial cooperation programs that could alleviate factors which hinder regional cooperation. For instance, considering the importance of the nuclear cooperation issue in Northeast Asia, the Secretariat could initiate a 'Northeast Asia Atomic Energy Community' similar to EURATOM in Europe.
Fifth, in order to formalize the Trilateral Summit and successfully implement the industrial cooperation programs, the Secretariat should continue efforts to minimize factors which hinder trilateral cooperation. Therefore, the Trilateral Cooperation Secretariat should keep politics out at the initial stage.
Sixth, the Security Evaluation Report is in need of further development of mutual understanding of trilateral peace security issues.
Seventh, a 1.5 Trace Dialogue among China, Japan, and Korea is necessary for a more active discussion on security and regional issues in Northeast Asia.
Eighth, a multilateral security cooperation is crucial for strengthening future-oriented cooperation and ultimately to achieve economic integration.
Ninth, the three countries must develop and implement programs to enhance common values and identity among Northeast Asians. Organizing an East Asian Common Heritage by the Secretariat can be one option. Another idea is to install an exclusive airport of entry for Chinese, Japanese, and Korean citizens.
Tenth, in the short run, the Secretariat should pursue industrial cooperation programs which can help acquire supranational authority from its member countries. This should enable the Secretariat to improve the quality and operations of its industrialcooperationprogramsand allow China, Japan, and Korea to raise their economic cooperation to the next level.

Upon becoming the 24th member of the Development Assistance Committee of the OECD in November of 2011, the Korean government pledged to increase the ratio of its foreign aid relative to GNI to 0.25%, or US$3 billion, by 2015. Such increases in the amount of foreign aid from Korea has simultaneously given rise to the importance of qualitative improvement regarding its utilization.
As part of the effort to improve the quality of aid, this study explains experiment methodologies for measuring effectiveness of aid. Experiment methodologies are being adopted in light of numerous disappointments involving international aid. Given the circumstances, a researcher basing his or her work on experiment methodologies eschews broad and overly general concepts such as ‘economic development’ in favor of responding to specific issues such as increases in children’s school attendance rates. Experiment methodologies have recently received much attention from researchers in development microeconomics, and its impact upon measurement of aid efficacy has been significant. Thus it is vital that any official or personnel involved in foreign aid become acquainted with them. Experiment methodology basically involves the following process. The researcher randomly divides the participants into control and test groups. Treatments projects are given to the test group only, and the results of the actions of the two groups are compared after a certain amount of time. Although the process of an experiment appears straightforward, there are potential difficulties that may arise, such as attrition. This study covers the logical foundation of the experiment method, potential problems during an experiment, and possible solutions to the problems.
However, there will be cases such as disaster relief where the application of the experiment method would be morally unacceptable, and where the results from the same treatment may be different depending on the scale of the projects. This study concludes by outlining limitations of the experiment method.

I. Introduction

II. Model Setup
1. Basic Assumptions
2. Demand
3. Production
4. Cutoff Levels of Productivity and Worker Quality

III. Effects of Trade Openness on Unemployment: Second Period
1. New Cut-Off Levels of Worker Quality
2. Comparison of Worker Quality Between Groups
3. Structural and Frictional Unemployment

IV. Role of TAA in the Process of Intra-redistribution of Production Factors
1. The Need for a TAA Job Training Program Within a Sector
2. Sectoral Characteristics

V. Conclusion

References

This paper analyzes how TAA for workers plays a role on intra-sectoral redistribution of labor in response to trade liberalization by placing Riordan and Staiger’s (1993) TAA model within Melitz’s (2003) framework of international trade with heterogeneous monopolistically competitive firms. Due to the existence of asymmetric information of worker quality between firms and workers, high-productivity firms abstain from rehiring workers laid-off from low-productivity firms when the average quality of those workers is relatively low. Hence a job training program of TAA can have an important role in reducing unemployment and income deterioration in low productivity firms, and raise efficiency in high-productivity firms within a sector in response to trade liberalization. In addition, the job training program is more necessary with respect to the process of intra-redistribution of production factors when trade opens at a low level, and also when a sector has comparative advantage, skill-intensive technology and a large portion of low quality labor in the labor market.

 The cultural contents industry such as cinema, broadcasting, music album, game and publication is being considered as the major industry of the 21st century next to the heavy chemical industry in the 1970s and the semiconductor industry in the 1990s, and the cultural contents industry is growing rapidly to the point of recording 24.2% in the market increase rate of cultural contents industry whereas the economic growth rate of Korea is 5.7% in the past 9 years from 1999 to 2008.
 As Indonesia and Malaysia implemented effective economic development policies, Indonesia became a developing country through its increase in the national income per capita to $2,300 as of the end of 2009 and Malaysia is preparing to become a advanced country upon surpassing $6,700 in its national income per capita. The economic growth and the national income increase inevitably increase the demand and need for culture and related contents, thereby displaying the phenomenon of virtuous circulation of economy in which the growth and sales of related products rapidly increase.
The common characteristic of the industrial policy through economic development plan by Indonesia and Malaysia is that the percentage of manufacturing and service industries is continuously maintaining the level of over 40% out of the entire industry while concentrating on the cultivation on non-petroleum manufacturing industry after the 1980s from the petroleum & natural gas centered industrial policy of the past. Such economic growth, income level improvement and industrial structure change will go through the virtuous circulation structure of continuing on to supply increase together with the demand increase for cultural contents industry (broadcasting, music, cinema, game, etc.) and the cultural contents industry will continue to grow.
Meanwhile, the cultural contents industry of Indonesia is contributing 7.3% of the GDP as of 2008 according to Ministry of Trade and the cultural contents industry is being ranked at the top 8th in the industry of importance in the Indonesian economy while showing the average annual growth rate of 15%.
According to the data from Economic Planning Agency of Malaysia, the cultural contents industry of Malaysia is taking up 12.3% of the GDP as of end of 2008, and the cultural contents industry has been growing to the point of having become the top 5th industry of importance in the economy of Malaysia while showing the average annual growth rate of 18%.
The world broadcasting market is expected to show the average annual growth rate of 5.5% from 2009 to 2014 and the broadcasting & communication industry of Malaysia is also expected to show the annual growth rate of over 10%. One of the characteristics of broadcasting market in addition to the viewing rating is that the size of print media advertisement market is surpassing that of the TV market in double the size. This gap can be seen as the result from the limitations in the number of broadcasting stations for frequency circumstance for the broadcasting media whereas the advertisement media is diverse for the print media being issued according to race and language.
In the case of the Indonesian broadcasting industry, there are currently 11 national TV broadcastings and 60 regional TV broadcastings at the allowance of private sector participation in the broadcasting industry in 1989 and the majority of the broadcasting stations are mostly broadcasting the movies and dramas imported from the US, Chinese speaking countries, India, Japan and Korea instead of the self-produced programs. In addition, melodrama is forming the majority in the genre of preference and the dramas with clear good-evil confrontation structure is being preferred overall and the dramas added with a comic element are highly popular.
In the midst of the world music industry situation in which only the digital music industry is growing, the music album industry among the entire music industry of Indonesia is decreasing from the flooding of illegal replica whereas the digital music distribution market has a very significant growth potential despite its small market size as music albums started to be distributed through the Internet. In the case of the music industry of Malaysia, the overall music industry including the music album market is one of the most quickly deteriorating markets as it has reduced in size to about 1/3 compared to that in the mid 1990s when it was a period of market revival. Especially, it is being revealed that the market is receiving a serious impact from the drastic decrease in the sales of CD and cassette tape from 2005 to 2008 at the flooding of illegal replica.
In the midst of the predication that the world cinema market will record the annual average growth rate of 4.4%, the cinema industry of Indonesia started to actively grow since 1992 and 365 movies were produced from 1997 to 2008. In addition to the artistic value and originality of the Indonesian movies, it is showing continuous growth and advancement in the number of movie production, number of screens, commercial success revenue, number of audiences, etc. In the case of Malaysia, the cultural expenditure is also increasing from the economic growth and income level increase and it is showing continuous increase in the number of movie production, commercial success revenue and number of audiences except for in 2008 when the global financial crisis broke out.
In the midst of the prediction that the world game market will record the annual average growth rate of 5.5%, the percentage of mobile game and online game is expected to reach in the total of 28.3% by 2014 from increase compared to that in 2009 and the console game, arcade game and PC game that had been traditionally showing strong trend are expected to decrease in their percentage.
In the case of Malaysia, the size of online game market recorded $33.9 million in 2009 and it will reach $39.5 million in 2010, which is a growth by 16.5% compared to that of the previous year. In the case of the Indonesian game industry, the mobile game that takes up 20% of the game market and the online game that takes up 15% appeared since 2000 and continue to show rapid growth in Indonesia. Furthermore, the forecast for growth appears to be very bright as they are relatively less affected by the damages from illegal replica while the profitability is continuing to improve thanks to the structure of continuously receiving the usage fee according to the characteristic of game.