Policy Analyses
12-01 China, World Economy and Korea-China Economic Cooperation

Policy Analyses I (in korean)
12-01 Economic Effects of Trade on Employment and Value Added
12-02 The Analysis of the Factors for the Stalemate of the Doha Development Agenda Negotiation and
       Implications for Its Completion
12-03 The Impact of Free Trade Agreements on Economic Performance in Korea
12-04 Empirical Analysis of Trade Liberalization: The Benefits to Korean Consumers
12-05 A Study on Interaction between Economic Openness and R&D Policies
12-06 Korea’s Green Growth Policy and Multilateral Trade Rules: Harmonization Issues and Policy   
       Implications
12-07 Designing New Climate Change Regime: A Unified Approach for Mitigation and Finance Mechanisms
12-08 Effects of Government Debts on Sovereign Credit Rate
12-09 Macroeconomic Policies during the Global Financial Crisis: Lessons and Policy Implications
12-10 Effective FX-hedge Policy Using Financial Market
12-11 Impacts of Large Disasters on Macroeconomy and Financial Markets
12-12 Causes of the European Debt Crisis and Reform of the European Governance
12-13 Trilateral Economic Cooperation: Proposal for Enhancing Economic Cooperation Dialogue Channels
        among China, Japan, and Korea
12-14 The Least Developed Countries: Key Challenges and the Way Forward for Korea’s Development
        Cooperation
12-15 Japan’s Economic Cooperation with China in the Era of G-2 and Its Implications for Korea
12-16 China’s Urbanization; Consumption, Construction and Risks
12-17 R&D of Chinese Firms: Characteristics and Implications
12-18 The Reinforcement of Economic Cooperation among China-Taiwan-Hongkong and Its Implications
12-19 Russian ODI and FDI promotion strategy of Korea
12-20 Korea’s Development Cooperation with the Mekong Region Countries
12-21 Southeast Asian Labor Migration to Korea: Origin-Country Factors and Policy Implications
12-22 Economic Cooperation between India and Selected Asian Countries: Current Status and Policy
        Implications
12-23 How to Promote Economic Cooperation with Resource-abundant Andean Countries: Focus on
        Venezuela, Ecuador, and Bolivia
12-24 Cooperation with the Middle East after the Arab Spring: Circumstantial Changes and Implications
12-25 Trends in the African Construction and Plant Building Market and Implication for Korea
12-26 The Current Situation of Marketization in North Korea and Prospects on a Change of its Economic
        System
12-27 Searching for a New Way in the American Economy after the Crisis
12-28 In Search of New Economic Path of Japan in the Post Global Financial Crisis
12-29 Financial Supervisory and Regulatory Reform of the after the Global Financial Crisis
12-41 Ways to Improve Korea’s ODA Policy Derived from European Experience
12-42 European ODA Policy and Korea-EU Development

Conference Proceedings
12-01 Economic Development Strategy in China Coastal Area in Transition: Challenges and Implications
12-02 2011 KIEP Visiting Scholars’ Paper Series
12-03 Korea and East Asia in a Changing Regional and Global Environment
12-04 Financing Regional Economic Integration and Functional Cooperation for Northeast Asia:
       A Multilateral Financial Institution for Northeast Asia

ODA Regional Studies (in korean)
        Policy Analyses I 12-37
12-01 Key Development Needs in Southeast Asia and Priority Sectors of Korean ODA
        Policy Analyses I 12-38
12-02 Key Development Needs of South Asia and Priority Sectors of Korean ODA
        Policy Analyses I 12-39
12-03 Analysis on Latin America’s Aid Demand and Suggestions for the Priority Sectors
        Policy Analyses I 12-40
12-04 Analysis on Africa’s Development Needs and Korea’s Sectorial Plan for ODA

ODA Policy Analyses (in korean)
12-01 A Study on Priority Areas and Programs for Korea’s Aid for Trade
12-02 International Cooperation for Industrial Development: Issues, Challenges and Future Directions
12-03 International Cooperation for Financial Sector Development
12-04 International Cooperation for Agricultural Development
12-05 The Educational Development and Cooperation Plan
12-06 Environment and Development: Implications for Korea’s ODA Policy
12-07 Green Economy and Sustainable Development: Issues and Implications for Korea’s ODA Policy
12-08 Benefit-Cost Analysis of ODA Projects

Studies in Comprehensive Regional Strategies (in korean)
12-01 Co-petition Strategy through Comparative Studies on the Korean and Indian Pharmaceutical Industries
12-02 Myanmar’s Transformation: International Responses and Implications for Korea
12-03 The Myanmar’s Foreign Relations and Correlation with Principle Countries
        Policy Analyses I 12-30
12-04 Industrial Cooperation between Korea and Indonesia in Java Economic Corridor
12-05 Current State of Foreign Aid in HRD in Lao PDR and Korea’s Assistance Strategy
        Policy Analyses I 12-31
12-06 Mongolia’s Investment Environment and Measures to Expand the Market Entry of Korean Businesses
12-07 The Characteristics and Implications of Sovereign Wealth Funds in Central Asian Countries:
       Kazakhstan and Azerbaijan
12-08 The Study about Kazakhstan’s Industrial Diversification Policy and Korea’s Strategy for Green Growth
       Partnership with Kazakhstan
        Policy Analyses I 12-32
12-09 Development of CAREC and Implications for Korea
        Policy Analyses I 12-33
12-10 The Strategic Connotation and Implications of the Strategic Triangle of Russia, China and India
        Policy Analyses I 12-34
12-11 The Study of Land Issues in South Africa
        Policy Analyses I 12-35
12-12 The Social and Economic Development Capacity Building in Ethiopia and Kenya: Strategies for
       Korean International Development and Cooperation
12-13 Korea’s International Development Cooperation for the Promotion of Ethiopian Small and Medium
       Enterprises (SMEs)
12-14 The Northeast Region of Brazil: Its Investment Environment and Ways to Expand Korea’s          
       Participation
        Policy Analyses I 12-36
12-15 A Study on the Characteristics of Latin American Elites
12-16 Structures and Risk Factors of Islamic Project Finance
12-17 Political Structure and Economic Policy in Iran
12-18 Major Industries in Singapore: MICE, Medical Trism Industry
12-19 Major Industries In Georgia: Transport Infrastructure and ICT
12-20 Major Industries in Mexico: Petrochemical and Renewable Energy Industry
12-21 Major Industries in Jordan: Electric Power and Healthcare
12-22 Major Industries in Mozambique: Electric Power and Agribusiness Industries

 

Trade and Investment Study Series (in korean)
12-01 Spillover Effect of Inward Foreign Direct Investment in Korea by FDI Mode
12-02 A Study on Systemic Issues of WTO Governance and Korea’s Policy Options
12-03 Investigation of China-Korea and Japan-Korea FTA Preferences and Policy Implications

Policy References (in korean)
12-01 Lessons from Mexico under NAFTA
12-02 The Structure and Policy Implications of Islamic Finance: Focused on Sukuk
12-03 A study on the Korea-China FTA Service Negotiation Strategies: Focused on the Implications from
12-04 Korea-Japan Economic Cooperation amid a New East Asian Integration with an Emphasis on FDI
       Flows
12-05 Issues on Development Aid: European Perspective
12-06 A Case Study on the Foreign Companies Inroad to the Urban Development in China
12-07 Changing Labor Environment in China and Countermeasures of South Korean Companies: Focused
       on the Bohai Economic Rim
12-08 China’s Non-Tariff Barriers and Implications for Korea-China FTA
12-09 The Analysis of Competitive Strategies of Enterprises in Shanghai Luxury Consumer Market
12-10 Analysis on the Multinational Retailers’ Entry into Central China

Working Papers
12-01 Comparative Advantage, Outward Foreign Direct Investment and Average Industry Productivity:
       Theory and Evidence
12-02 Multilateral Engagement in North Korea’s Economic Rehabilitation and Possible Establishment of
       Trust Funds
12-03 A Theory of Economic Sanctions
12-04 Election Cycles and Stock Market Reaction: International Evidence
12-05 Korea’s Monetary Policy Responses to the Global Financial Crisis
12-06 Real Frictions and Real Exchange Rate Dynamics: The Roles of Distribution Service and Transaction
       Cost
12-07 An Assessment of Inflation Targeting in a Quantitative Monetary Business Cycle Framework

APEC Study Series
12-01 Characteristics and Determinants of Cross Border Mergers in the APEC Region
12-02 APEC’s Regional Economic Integration Agenda and the Evolution of Economic Integration in the
       Asia-Pacific Region

Monographs
• Who Commands the Negotiating Table: An in-depth analysis of the IMF quota and governance
  Reform Negotiation Process in the Lead up to the G20 Seoul Summit (in korean)
• Korea-India Deepening Partnership for the 21st Century

2012 Summaries of Research Reports

In 2012 those of us at KIEP had designated four main research topics we deemed most pertinent to current circumstances, and engaged in twenty major projects in line with those topics. These include negotiations for liberalization of the services market and other multilateral trade issues in response to WTO regime reforms and other changes in the world trading environment; economic cooperation in APEC and other regional issues; and current bilateral trade issues including free trade agreements. KIEP conducted research to address changes in the macroeconomic environment surrounding Korea, such as changes the internationalization of the Korean won as a result of Korea's increasing prominence on the international economic scene, and presented basic resource materials and provided directions to prepare for changes in North Korea. Policy responses to global inequalities in light of the current rapid transnational movement of capital were forwarded, in addition to measures to facilitate Korea's entry into foreign markets and attract foreign investment. In recognition of rising demand for research on the world's regions, KIEP did not limit itself to providing data on Korea's major trading partners such as the US or China, but made efforts to provide basic data on Central/South America and Africa that had hitherto been lacking.

This study measures the trade in value added using the World Input Output Tables and the socio-economic accounts of 40 countries and 35 industries from 1996 to 2009. Specifically, this study analyzes the effects of trade on the value added, based on Meng et al. (2006), WTO and IDE-JETRO (2011), Stehrer (2012), Stehrer et al. (2012). The measurement results indicate that export and import values in value added turned out to be smaller than the values in gross value. However, the trade balance in terms of value added does not necessarily shrink compared to the bilateral trade balance in terms of gross value.
This study also investigates the determinants of trade in value added, incorporating the gravity model, the Heckscher-Ohlin model, and the Ricardian model. When we use the data on trade in value added, the explanatory power of the gravity model turned out to be relatively small compared to the pooled data on trade in gross value, but that of the Heckscher-Ohlin model turned out to be stronger while the Ricardian model revealed mixed results. Interestingly in our investigations, the elasticities of the Heckscher-Ohlin as well as the Ricardian parameters have been increasing while that of the gravity model has remained stable during the period 1996-2009. This result implies that trade patterns can be better explained by factor endowment and technological differences during the 2000s compared to the 1990s.