Policy Analyses
RESEARCH
Policy Analyses
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The Transition Toward Innovation-Driven Economies in East Asia and Korea's Innovation Strategy
This research studies the shifts into innovative economies of the East Asian economies in the comparative context and finds policy implications for Korea. This explores the implementing strategies for innovative economies and eval..
Yoo Soo Hong et al Date 2003.12.23
Economic DevelopmentDownloadContentSummaryThis research studies the shifts into innovative economies of the East Asian economies in the comparative context and finds policy implications for Korea. This explores the implementing strategies for innovative economies and evaluates the performances in the shifts of the East Asian economies, such as Japan, Korea, China, Taiwan, Singapore, Malaysia, Thailand, Philippines and Indonesia. This also presents policy implications for Korea's innovative strategies, including Korea's competitive and cooperative strategies with other East Asian economies. (The rest is omitted.) -
China's NPL Problem: Causes and Prospects for Resolution
NPL problem in China's banking sector is regarded as a major weakness of her economy. This study tries to find out its causes and evaluate its prospects for resolution. Under the monolithic banking system before China's reform era..
Mansoo Jee et al. Date 2003.12.22
DownloadContentSummaryNPL problem in China's banking sector is regarded as a major weakness of her economy. This study tries to find out its causes and evaluate its prospects for resolution.
Under the monolithic banking system before China's reform era, government's finance, central bank and commercial banks did not separated at all. As a result, lending behavior of State banks did not developed as in market economy and NPL problem itself could not exist either. (The rest is omitted.) -
The Decision to Invest Abroad: The Case of Korean Multinationals
Recent firm-based empirical studies find that firms that serve foreign markets either through exports or foreign direct investment (FDI) are more efficient than their domestically oriented counterparts. However, recent empirical l..
Hongshik Lee Date 2003.12.20
Overseas Direct InvestmentDownloadContentSummaryRecent firm-based empirical studies find that firms that serve foreign markets either through exports or foreign direct investment (FDI) are more efficient than their domestically oriented counterparts. However, recent empirical literature attributes these differences to only exports. The purpose of this paper is to extend some recent works to study the link between firm performance of multinationals and choice to participate in the foreign investment. In so doing, this paper explicitly differentiates exports and FDI decisions. Using firm-level data for large Korean manufacturing firms, I provide evidences that the premium for FDI is huge compared to exports, and good firms do FDI. (The rest is omitted.) -
WTO/DDA Negotiation on Agriculture: Evaluation for Modality and Its Implications for Agricultural Policy
Agricultural negotiations, which started in January of 2000, have been undertaken as part of the DDA negotiations, most recently at the WTO Ministerial Meeting at Cancun in Mexico, September 2003. In spite of the earnest negotiati..
Yoocheul Song et al. Date 2003.12.15
Multilateral NegotiationsDownloadContentSummaryAgricultural negotiations, which started in January of 2000, have been undertaken as part of the DDA negotiations, most recently at the WTO Ministerial Meeting at Cancun in Mexico, September 2003. In spite of the earnest negotiations entered into to establish modality, the parties involved have not reached agreement on a draft due to the failure of the Cancun Ministerial meeting. However, the draft of the Ministers' Declaration (Derbez text) will be utilized afterwards as a basis for discussions in future DDA negotiations. Accordingly, an analysis of this issue will be meaningful. (The rest is omitted.) -
The Determinants of European Financial Centers and Their Implications for Korea
The main purpose of this paper is to investigate the crucial policy issues required to initiate international financial centers in Korea from the literature on the development and sustainability of European financial centers. (The..
Chongook Rhee Date 2003.12.10
Financial LiberalizationDownloadContentSummaryThe main purpose of this paper is to investigate the crucial policy issues required to initiate international financial centers in Korea from the literature on the development and sustainability of European financial centers. (The rest is omitted.) -
A Northeast Asian Financial Hub: Conditions and Comparisons
In East Asia region, Tokyo, Hong Kong and Singapore are playing leading roles as the international financial hubs. Seoul and Shanghai are also emerging as the international financial hubs. The success of the international financi..
Hyungdo Ahn Date 2003.12.08
Financial LiberalizationDownloadContentSummaryIn East Asia region, Tokyo, Hong Kong and Singapore are playing leading roles as the international financial hubs. Seoul and Shanghai are also emerging as the international financial hubs. The success of the international financial hub depends on the establishment of the center of transportation, a political capital, a business center, and the headquarters of central banks. (The rest is omitted.) -
Recent Developments in African Textile and Apparel Industries and Its Policy Implications for Korean Firms
The Korean textile industry, once a major contributor to Korea's rapid export expansion, has been losing its competitiveness due to stricter trade barriers in advanced economies, improved qualities of textiles in developing countr..
Heungchong Kim et al. Date 2003.10.31
Industrial PolicyDownloadContentSummaryThe Korean textile industry, once a major contributor to Korea's rapid export expansion, has been losing its competitiveness due to stricter trade barriers in advanced economies, improved qualities of textiles in developing countries and increased wage levels in the domestic economy. To cope with the challenges confronting further development of the industry, Korean textile and apparel factories have moved their production bases abroad in search of cheaper labor, while working to produce higher value-added products by developing advanced technology. Southeast Asia and Latin America had been good alternatives for new production bases, but they have been losing their comparative advantage in labor costs and the privilege of easy access to the U.S. market due to the policy change of the U.S. government. Now is the time for the Korean textile industry to find new alternative production bases.
It is noteworthy that Africa gained in growth momentum from the mid-1990s on, after a long period of economic recession and political turmoil. Recently, African countries have initiated the formation of the AU and NEPAD, reflecting their changing perception of self-fulfillment to solve African problems. These efforts were quickly followed by several preferential trade treatments, including the AGOA and the Association Agreement initiated by the U.S. and the EU, respectively. The Multilateral Investment Guarantee Agency under the World Bank Group, founded to minimize investment risk and thus alleviate business cycle fluctuations, has supported the improved economic environment in Africa. (The rest is omitted.) -
Thailand's FTA Policy and its Implications
Thailand expanded its exports to help overcome the financial crisis of 1997/98. To avoid a recurrence of the crisis and to achieve sustained economic growth, FTA policy became the most important external policy for Thailand from 1..
Kyoung Doug Kwon Date 2003.10.30
Trade Policy, Free TradeDownloadContentSummaryThailand expanded its exports to help overcome the financial crisis of 1997/98. To avoid a recurrence of the crisis and to achieve sustained economic growth, FTA policy became the most important external policy for Thailand from 1998. The Prime Minister, Thaksin Shinawatra, strongly supports a free trade regime, advocating the early conclusion of an AFTA (ASEAN Free Trade Area) and FTAs with large economies such as the U.S, Japan and EU. (The rest is omitted.) -
Exchange Rate Uncertainty and Free Trade Agreement between Japan and Korea
In this paper, we empirically analyze how increased exchange rate volatility influences the volume of trade between Japan and Korea and between these two countries and the United States. Our results strongly suggest that the incre..
Kwanho Shin et al. Date 2003.10.25
Free Trade, Exchange RateDownloadContentSummaryIn this paper, we empirically analyze how increased exchange rate volatility influences the volume of trade between Japan and Korea and between these two countries and the United States. Our results strongly suggest that the increased exchange rate volatility is negatively related to the trade volume between Japan and Korea and the U.S., Japan and Korea. Despite the evidence that exchange rate stability promotes trade, the discussions on the Japan-Korea FTA are proceeding without emphasis on exchange rate coordination. While the EU integration process was fortified initially by exchange rate coordination and later by the introduction of a monetary union, NAFTA presents a contrasting case of pure trade integration without monetary cooperation. The crucial elements in EU that facilitated monetary cooperation were: a large trade share among involved countries and strong political will from member countries. As the Japan-Korea trade integration process, at least in isolation, lacks both elements, it is not likely that any explicit monetary or exchange rate coordination will naturally arise. -
Finance and Economic Development in East Asia
Despite the increasing trend toward market-based finance systems, most East Asian countries still have bank-based systems. The purpose of this paper is to examine the extent to which bank-based financial development in East Asia h..
Yun Chul Park et al. Date 2003.10.20
Economic DevelopmentDownloadContentSummaryDespite the increasing trend toward market-based finance systems, most East Asian countries still have bank-based systems. The purpose of this paper is to examine the extent to which bank-based financial development in East Asia has contributed to economic growth. To do this, a series of empirical analyses are conducted to gauge the effects of changes in the exogenous component of financial development on economic growth by using data on East Asian and Latin American countries for the 1960-97 period. Our empirical results show that the exogenous changes to financial development in East Asia have a strong, positive impact on growth rates. However, we find that there is weak evidence of a negative relationship between finance and growth for Latin American countries, a finding consistent with that of de Gregorio and Guidotti (1995).