Policy Analyses
RESEARCH
Policy Analyses
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The Political Economy of Monetary Integration in East Asia
The Asian currency crisis of 1997 induced East Asian countries to seriously consider forming a common currency area as an alternative to the past soft-peg and the current floating exchange rate regimes. The successful launch of th..
Kwanho Shin et al. Date 2003.10.15
Financial Integration, Financial CooperationDownloadContentSummaryThe Asian currency crisis of 1997 induced East Asian countries to seriously consider forming a common currency area as an alternative to the past soft-peg and the current floating exchange rate regimes. The successful launch of the euro in 1999 and its claimed benefits are also encouraging this movement. The sanctity of one country, one money has come into question. Countries joining a currency union typically benefit from reduced transaction costs and reduced uncertainty related to exchange rate variability. (The rest is omitted.) -
The Chinese Insurance Industry's Competitiveness and Strategy for the Korean Advance
In this research paper, we explain the background and recent history of the Chinese insurance industry, the competitiveness of the insurance industry and the implications for Korean companies interested in this sector. (The rest i..
Euihyun Choi et al. Date 2003.10.15
Industrial PolicyDownloadContentSummaryIn this research paper, we explain the background and recent history of the Chinese insurance industry, the competitiveness of the insurance industry and the implications for Korean companies interested in this sector. (The rest is omitted.) -
The Effect of Labor Market Institutions on FDI Inflows
This study examines the impact of strengthening employment protection legislation, the structure of collective bargaining (centralization and coordination) and other labor market variables (national levels of unionization, strike ..
Chang-Soo Lee Date 2003.10.15
Labor Market, Foreign Direct InvestmentDownloadContentSummaryThis study examines the impact of strengthening employment protection legislation, the structure of collective bargaining (centralization and coordination) and other labor market variables (national levels of unionization, strike levels and tax wedges on labor income) on a country's FDI inflows. Examining 29 OECD nations, our statistical analysis shows that strict EPL, which increases labor market rigidity, is usually associated with lower levels of FDI shares. Japanese investors are more sensitive to employment protection measures in choosing destinations for FDI than others. A 1-percentage-point increase in EPL causes a decrease of about 4.2 percent to Japan's FDI share, compared to the decrease of 2.2 percent that results in the worldwide share. Finally, we discuss the implications of the recent employment protection policies in Korea that focus only on the interests of 'inside' labor, reducing FDI inflows as well as neglecting the interests of 'outside' labor (unemployed and future labor). Thus, policies for spending on outside labor and promoting entrepreneurship are necessary for national welfare to increase. -
Fear of Inflation: Exchange Rate Pass-Through in East Asia
The purpose of this paper is to empirically examine the pass-through of exchange rates for import prices and consumer prices in a few selected East Asian countries - Japan, Korea, Singapore and Thailand. According to our empirical..
Sammo Kang et al. Date 2003.09.30
Financial Crisis, Exchange RateDownloadContentSummaryThe purpose of this paper is to empirically examine the pass-through of exchange rates for import prices and consumer prices in a few selected East Asian countries - Japan, Korea, Singapore and Thailand. According to our empirical results, first, exchange rates had a greater impact on import prices than on consumer prices in all four countries. Second, the impact of exchange rates on import and consumer prices increased in Korea and Thailand after the 1997 currency crisis. -
The Collection of KIEP Seminar Briefings (2001. 8-2003. 6)
The Korea Institute for International Economic Policy organized a number of international conferences and seminars concerning major international economic policy issues in collaboration with the world's leading research institutes..
Co-authors Date 2003.08.30
DownloadContentSummaryThe Korea Institute for International Economic Policy organized a number of international conferences and seminars concerning major international economic policy issues in collaboration with the world's leading research institutes.
This paper is a collection of the KIEP seminar briefings to encourage Korea's sustainable development as presented at conferences from August 2001 to June 2003. -
Trade Facilitation in the WTO
The 1996 WTO Ministerial conference, held in Singapore, mandated the WTO member countries to carry out exploratory and analytical works on the simplification of trade procedures in order to assess the scope for WTO rules in trade ..
Chan-Hyun Sohn et al. Date 2003.07.31
Multilateral Negotiations, Trade PolicyDownloadContentSummaryThe 1996 WTO Ministerial conference, held in Singapore, mandated the WTO member countries to carry out exploratory and analytical works on the simplification of trade procedures in order to assess the scope for WTO rules in trade facilitation. As a result, trade facilitation is known as one of four Singapore issues that may become subject to negotiations in the Doha Development Agenda (DDA). (The rest is omitted.) -
Lessons from Economic Reform in Hungary: Emphasizing the Financial Sector
This research assesses the economic reforms of Hungary, especially focusing on the financial sector, in order to provide a current view of the business climate of the financial sectors in transforming Hungary and also to consider ..
Cheol-Won Lee Date 2003.07.30
Economic ReformDownloadContentSummaryThis research assesses the economic reforms of Hungary, especially focusing on the financial sector, in order to provide a current view of the business climate of the financial sectors in transforming Hungary and also to consider various implications for the financial reform process of other countries in Central and Eastern Europe. The findings of the study are expected to provide valuable policy lessons for countries like Bulgaria and Romania which are still suffering from cumulative bad loan problems and need to privatize banks which had become state-owned in the early attempt to restructure financial industry.
Assessing the status of financial sector reform in Hungary will also enable us to understand the challenges and policy tasks countries in the region are facing. (The rest is omitted.) -
Evolving Patterns of Corporate Financing in Korea
Like many other countries in East Asia before the financial crisis of 1997, Korea relied heavily on bank intermediation for corporate financing. The growth-oriented strategy of Korean banks, which neglected profitability and prope..
Haesik Park et al. Date 2003.07.25
Financial CooperationDownloadContentSummaryLike many other countries in East Asia before the financial crisis of 1997, Korea relied heavily on bank intermediation for corporate financing. The growth-oriented strategy of Korean banks, which neglected profitability and proper risk management, resulted in the inefficient allocation of financial resources and allowed Korean firms to have easy access to bank loans. However, the corporate financing patterns of Korea remarkably changed after the crisis. (The rest is omitted.) -
Financial Crisis and the Islam Policy in Malaysia
The Malaysian government introduced the policy of fixed exchange rate and capital control to overcome the financial crisis which occurred in 1997. This report seeks to understand the background and meaning of the implementation of..
Myung-Seok Oh Date 2003.07.10
Financial CrisisDownloadContentSummaryThe Malaysian government introduced the policy of fixed exchange rate and capital control to overcome the financial crisis which occurred in 1997. This report seeks to understand the background and meaning of the implementation of this 'unorthodox' recovery plan by locating it in the particular historical and social context of Malaysia. (The rest is omitted.) -
Monetary Cooperation in East Asia: Exchange Rate, Monetary Policy, and Financial Market Issues
The introduction of the euro as a single currency by the European Union has continued to promote growth and stability in Europe. The Asia financial crisis of 1997-1998, and the evolution of the euro zone have drawn greater attent..
Sung Yeung Kwack et al. Date 2003.06.30
Monetary Policy, Exchange RateDownloadContentSummaryThe introduction of the euro as a single currency by the European Union has continued to promote growth and stability in Europe. The Asia financial crisis of 1997-1998, and the evolution of the euro zone have drawn greater attention from both policy makers and economic analysts as to the possibility of an East Asian monetary union and what could be done with respect to monetary and exchange rate policy, and financial systems. (The rest is omitted.)