Policy Analyses
RESEARCH
Policy Analyses
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Trade Structure and Economic Growth: A New Look for the Relationship between Trade and Growth
What is the relationship between trade and economic growth? Due to the ambiguity of the relationship between trade and growth, the empirical relationship remains open (Rodriguez & Rodrik 2001, Baldwin, 2003). This paper introd..
Chan-Hyun Sohn et al. Date 2003.12.27
Economic Development, Trade StructureDownloadContentExecutive Summary
I. Introduction
II. Trade Structure and Growth
1. Use of Trade Structure
2. Three Models linking Trade to Growth
3. Trade Structure Variables
III. Empirical Analysis
1 Estimation Method
2. Data
3. Results
IV. Conclusion
References
AppendixSummaryWhat is the relationship between trade and economic growth? Due to the ambiguity of the relationship between trade and growth, the empirical relationship remains open (Rodriguez & Rodrik 2001, Baldwin, 2003). This paper introduces 'trade structure' variables, borrowing from the structure-conduct-performance (SCP) paradigm of Industrial Organization literature, and applying them to the relationship. A dynamic panel estimation for the data of 66 countries during 1991-2001 is used to verify the validity and robustness of the relationship. Trade structure variables that represent Heckscher-Ohlin model and Product Differentiation model respectively show strong evidence of positive effects on growth. This paper concludes that trade structures, not trade, well explain growth. (The rest is omitted.) -
European Integration and the Asia-Pacific Region
This book composed of eight papers dealing with the recent stage of the European Integration and its implications on the Asia-Pacific region. Firstly, Professor Delmatino's paper deal with the European Convention and the future of..
Heungchong Kim ed. Date 2003.12.27
Economic Cooperation, Trade PolicyDownloadContentSummaryThis book composed of eight papers dealing with the recent stage of the European Integration and its implications on the Asia-Pacific region. Firstly, Professor Delmatino's paper deal with the European Convention and the future of the European Integration. Debating the future of European integration a few weeks before the Convention is expected to submit its final conclusions to the European Council, is a bit frustrating. In some fields significant progress has been made and the broad consensus reached on these issues is not limited to the 105 participants of this unique assembly, but shared by many in the European arena. On some crucial questions, however, the outcome is more questionable. Even if the Convention should find a compromise by mid-June, there is no guarantee that the 'Masters of the Treaties', the member states, will simply endorse it. In other words, the Convention undoubtedly marks a breakthrough, in terms of method and content, in the debate on the future of Europe, but is for sure not its ultimate conclusion. Therefore, a discussion of what yet has been achieved and what is still undecided, sheds some light on the characteristics of the process of consensus building in the EU and on the main issues at stake. (The rest is omitted.) -
Financial Market Opening in China and Korea
These seminar proceedings, a compilation of the works of four Korean and five Chinese economists, were the result of an international seminar co-organized by the Korea Institute for International Economic Policy of Korea and Insti..
Young-Rok Cheong et al. Date 2003.12.27
Economic OpeningDownloadContentSummaryThese seminar proceedings, a compilation of the works of four Korean and five Chinese economists, were the result of an international seminar co-organized by the Korea Institute for International Economic Policy of Korea and Institute of Quantitative and Technical Economics at the Chinese Academy of Social Sciences. (The rest is omitted.) -
Negotiation of a Possible WTO Regime on Competition Policy: The Way Forward
The increasing cross-border impact of anti-competitive behavior has led to frequent extra-territorial application of national competition law by major competition authorities such as the United States and the European Union. Recen..
Mikyung Yun Date 2003.12.27
Multilateral NegotiationsDownloadContentSummaryThe increasing cross-border impact of anti-competitive behavior has led to frequent extra-territorial application of national competition law by major competition authorities such as the United States and the European Union. Recently, developing countries have also begun to vigorously enforce their competition laws against anti-competitive actions occurring abroad but affecting their markets, largely relying on decisions from developed economies.Such brisk cross-border activity related to competition policy has required increased coordination among competition authorities, both because international anti-competitive actions require international investigations and because of the need to resolve jurisdictional conflicts. Despite the recognition that an international competition regime is needed for such coordination, the suitability of the WTO as a forum has been subject to much debate. Although a Working Group on Trade and Competition Policy was established at the Singapore Ministerial in 1997 to discuss this issue, WTO members have so far failed to open negotiations on a multilateral competition regime. (The rest is omitted.) -
A China-Japan-Korea FTA: Current Progress and Tasks
A trilateral FTA between China, Japan and Korea(CJK) was raised as a possibility after the Asian financial crisis. In November 1999, the three countries made an official attempt to discuss stronger economic cooperation in Northeas..
Inkyo Cheong et al. Date 2003.12.27
Free TradeDownloadContentSummaryA trilateral FTA between China, Japan and Korea(CJK) was raised as a possibility after the Asian financial crisis. In November 1999, the three countries made an official attempt to discuss stronger economic cooperation in Northeast Asia during a trilateral summit meeting in Manila. Two years later (in November 2001), many issues were raised at the trilateral summit meeting in Brunei, including the commencement of foreign affairs and finance ministerial meetings among the three countries, a business forum, the development of cultural exchange and human resources, and the enforcement of an IT cooperation system. Through this process, the three countries finally were able to take their first steps toward trilateral economic cooperation and integrationOne year later, then Chinese Premier Zhu Rongji proposed the study of a trilateral FTA during the summit meeting in Phnom Penh, November 2002. Since then, the Trilateral Joint Research Project has been undertaken by the Development Research Center of the State Council(DRC) in China, the National Institute for Research Advancement in Japan(NIRA) and the Korea Institute for International Economic Policy(KIEP). The research has been carried out on a step-by-step basis, beginning with the 'Economic Effects of a Possible Free Trade Agreement among China, Japan and Korea' as the research theme for 2003. The policy recommendations have been developed jointly based on analysis and intensive discussion. The research results were reported at the trilateral meeting in Bali, October 2003, and a sectoral impact and policy study for a CJK FTA will be undertaken in 2004. (The rest is omitted.) -
Change in Japan's Trade Policy and Implications for Korea
'From multilateral to bilateral' is one of the important trends at present in the world trade environment. Since the late 1990s, Japan has supported a FTA-based trade policy for both a WTO-based multilateral trade system and an ac..
HongBae Lee et al. Date 2003.12.27
Trade Policy, Free TradeDownloadContentSummary'From multilateral to bilateral' is one of the important trends at present in the world trade environment. Since the late 1990s, Japan has supported a FTA-based trade policy for both a WTO-based multilateral trade system and an active participation in promoting regionalism in relation to bilateral free trade agreements. This policy shift began in earnest with the Japan-Singapore FTA in 2002. (The rest is omitted.) -
The Issues and Strategies for Financial Service Sector in FTA among Korea, China, and Japan
The goal of this research is to provide general position of Korea in financial service sector for FTA among Korea, China and Japan, and also to suggest policy measures to raise international competitive power of domestic financial..
Doo Yong Yang et al. Date 2003.12.27
Financial Liberalization, Free TradeDownloadContentSummaryThe goal of this research is to provide general position of Korea in financial service sector for FTA among Korea, China and Japan, and also to suggest policy measures to raise international competitive power of domestic financial institutions for development of financial industry henceforth. In order to decide the contents and direction of FTA negotiation in financial service sector, research not only about the current situation and characteristics of financial service in three countries but also about institutional restrictions on foreign financial companies and current circumstances of each country should be preceded. (The rest is omitted.) -
Exchange Rate Misalignment in East Asia: Three Different Approaches
According to traditional economic theory, exchange rate over-valuation and associated currency speculation are considered one of the leading causes of the currency crisis. Even though the over-valuation was not the single source o..
Sammo Kang et al. Date 2003.12.27
Exchange RateDownloadContentSummaryAccording to traditional economic theory, exchange rate over-valuation and associated currency speculation are considered one of the leading causes of the currency crisis. Even though the over-valuation was not the single source of the crisis, recent experiences in Latin America and Asia has revived the issue of equilibrium currency valuation. (The rest is omitted.) -
The Role of Exchange Rate Arrangements in Regional Trade Agreements: Implications for a China-Japan-Korea Free Trade Agreement
The global trading system has seen a sharp increase in regional trade arrangements (RTAs) over the past decade or so, with a total of 259 RTAs notified to the GATT/WTO by the end of December 2002. An additional 70 RTAs that have n..
Kwanho Shin et al. Date 2003.12.27
Free Trade, Exchange RateDownloadContentSummaryThe global trading system has seen a sharp increase in regional trade arrangements (RTAs) over the past decade or so, with a total of 259 RTAs notified to the GATT/WTO by the end of December 2002. An additional 70 RTAs that have not yet been notified to GATT/WTO are estimated to be operational and another 70 are under negotiation. (The rest is omitted.) -
Development of the High-Tech Industry in China and Korea's Response
This study is purposed to analyze the development process, major growth factors, medium-and long-term development directions, and competitiveness of the high-tech industry in China and to propose proper strategies and policies of ..
Yoo Soo Hong et al. Date 2003.12.27
Economic Reform, Economic DevelopmentDownloadContentSummaryThis study is purposed to analyze the development process, major growth factors, medium-and long-term development directions, and competitiveness of the high-tech industry in China and to propose proper strategies and policies of Korean firms and government in response to the challenges of the high-tech industrial development of China. (The rest is omitted.)