This research, the follow-up to ‘the Mexico’s Industrial Research’ published by KIEP in 2007, provides some suggestions for Korean government and private sector in order to enhance cooperation and advance in Mexican petrochemical and renewable energy industry after in-depth analysis of the industries.
At the government level, strengthening of communication channel such as summit meetings, interchange of industry cooperation delegation, and resume of FTA negotiation with the recently inaugurating administration are proposed as the policy direction for petrochemical industries. At the private level, this research suggests the followings: foothold strategy that considers Mexico as a center for advancing in the Latin American petrochemical market, the small and medium sized companies centered investment, high-tech fine chemistry sector investment, petrochemical plant market entry, the import market entry with the specialization in high value-added products, and the enhancement of technical cooperation in petrochemical field.
Meanwhile, in order to strengthen the cooperation in the renewable energy industry sector, the basic government policy suggestions are not so much different from those from petrochemical industry: improvement of the communication channel. In the private sector, encouraging entry into the self-generation business, establishment of renewable energy parts factory, winning a power plant construction contract, and lastly cooperation with Mexican companies and existing foreign companies in Mexico are suggested.

Singapore has achieved a high level of economic growth in spite of disadvantages which come from the limitations of city state, limited land space, natural resources, and population. On the base of advantages in the field of service industry, Singapore could develop to be a representative hub-state in Asia. Service industry accounts for over 70% in GDP, and retails, finance & insurance, business service sectors are occupying the large share of the industry. Recently, the growth engine of Singapore have extended its field from the traditional service industries, finance and logistics, to convergence and integration like MICE and medical tourism.
 Singapore has emerged as world top MICE country by the rapidly growing number of holding international meetings. According to the statistics of UIA(Union of international associations), Singapore ranked on top in 2011 by holding 919 international meetings. The MICE promotion policy of the government took a great role to develop as the world leading country in the field of MICE. By establishing a BTMICE(Business Travel + MICE) department, Singapore Tourism Board has been implementing a series of MICE promotion policies. In addition, SECB(Singapore Exhibition and Convention Bureau) has played important roles like supporting to hold conventions, meetings, exhibitions, conferences and to develop the business Tourism.
 Building the strategic cluster is also one of the major MICE promotions policies. The strategic cluster means the strategic grouping among the business partners in the field of national core industry. Singapore has been trying to improve the national image by holding conferences in the high-tech and value added industry. Lastly, Singapore has promoted its MICE industry by opening the giantic integrated resorts, Resort World Sentosa and Marina Bay Sands.
 Accoring to the SWOT analysis about MICE industry of Singapore, superior infrastructure and the aggressive MICE industry promotion policy shall be the srengths. On the other way, the high price level, lack of the asian traditional image would be the weaknesses. The sustainable economic growth of east asia and abundant potential demand of china region shall be the opportunities. The threats shall include the rising cost for luxury facilities and the excessive competition against neighboring countries would be the threats.
 Medical tourism industry has achieved a sustained growth as one of the major growth engines of Singapore. The arrivals of medical tourists to Singapore has increased 730 thousands in 2010 from 200 thousands in 2002. By this rapid growth, Singapore government expected that Singapore shall achieve one million medical tourism arrivals and 3 billion dollar in revenue in 2012. In order to promote medical tourism industry, Singapore has implemented a policy called 'Medical Hub in Asia', which include seven policy recommendations as the policy framework. For the 1st policy recommendation, Singapore has launched a native brand, SingaporeMedicine, and founded an integrated organization. In addition, Singapore simplified the immigration procedures and hosted international medical conferences for the internationalization policy. Singapore has also encouraged greater transparency on pricing and clinical practice norms as the second policy recommendation, and on reducing rigidities in the supply of doctors, nurses and paramedical manpower as the third policy recommendation. For the fifth policy recommendation, Singapore has supported clinical research in healthcare institutions.
Major hospitals in Singapore has tried to attract the medical tourists by operating the international patient center. For profit hospitals, Glen Eagles and Raffles, providing the customized and best service to the medical tourists by aggressive marketing.
According to the SWOT analysis about the medical tourism of Singapore, diversified marketing activities of for profit hospitals and one-stop service of SingaporeMedicine shall be the strength. High cost and lack of native medical work force would be the weakness. The opportunities would include the increasing demand and high-income class in southeast asia which maintain strong economic growth even during the global financial crisis. Synergy effect from the development of bio-medical industry also can be utilized as the opportunities. However, the level of medical service in the neighboring countries has been improving. Thus, Singapore has to cope with the threats like the concern on the demand decrease from the fierce competition.
 A few implications for Korean government can be found as follows; Korea can benchmark the aggressive MICE promotion policy and government organization of Singapore. MICE related organizations in Korea should break out of their general PR and convenience function and extend their function to mid-long term marketing under the public-private cooperations. Integrated resort with symbolic image like Marina Bay Sands also shall be good point to benchmark. Korea also has to improve the level of medical workforce by building the education and training institutions. In addition, case study on Singapore MICE industry also provides good sources to benchmark, for example, internationalization of mutual marketing system, inter-industry clustering strategy, connectivity with other type of tourism, etc. In the case of medical tourism, Korea has to build the integrated organization like SingaporeMedicine, and to improve the education and training institutions for the higher medical serve quality. Korean government needs to consider limited approval of for profit hospital. In addition, public-private marketing and detailed information system for better medical tourism marketing shall be additional points to be considered.

The promotion of small and medium enterprises (SMEs) is an effective policy measure to facilitate the functioning of markets by increasing the number of market participants. Moreover, the increase in the market participants expands the sources of tax to increase tax revenue. The majority of recipient countries with aid dependency experience difficulty achieving self-sustaining growth and development due to the shortage of revenue. Therefore, the expansion of sources of tax through the development of SMEs is a necessary condition in order for developing countries to move toward a better future. Thus, the nurturing of SMEs is important for developing countries.
The purpose of this study is to analyze the roles of Korea in the promotion of SMEs in Ethiopia as a means of development cooperation. SMEs in Ethiopia are experiencing the following barriers: low infrastructure, business-related policies and regulations, constraints to access credit, and the lack of government-led technical supports. We show that those constraints are linked and affect each other.
To remove those interlocking constraints hindering the development of SMEs, this study presents two policy suggestions. The first is the use of micro-finance. The constraint to access credit causes the lack of capital to block the accumulation of human capital and technology so that the SMEs cannot grow. Korea can provide ODA to the micro-finance institutes as a form of public-private partnership (PPP) projects to support the development of SMEs in Ethiopia.
Since most micro-finance institutions (MFIs) are owned by a local or central government, The Korean government can provide a provincial or central government with either a grant or credit assistance to improve the financial status of MFIs. They provide financial services to SMEs. Private partners of Korean government also donate expertise and technology to MFIs. Since MFIs provide small businesses with non-financial services such as management counseling or technology, private partners in Korea and small businesses in Ethiopia are naturally co-operated under these structures. This support program increases the likelihood that SMEs in Ethiopia buy raw materials or equipment from firms who transfer technology to them. By doing so, this program can work as a strategic expansion plan for Korean SMEs.
The second policy suggestion is to provide a comprehensive aid program. Before establishing the program, Korea must join the Development Assistance Group (DAG) in Ethiopia. Korea has to avoid making the decision that Korea alone will support the project the recipient country requests. Instead, Korea in consultation with major donor countries should select proper projects. Through this consultation process, we can clearly identify effective aid areas and achieve the harmonization of aid. First, each donor country proposes projects in the sectors of comparative advantage. Combining the proposed projects in consultation with other donors establishes a comprehensive program. This program could provide a means to untangle the tangled constraints. That is to say, interlocked constraints could be overcome through this program.

The Green Growth policy, which is the policy to improve the environment  and to foster economic growth of a country, has earned general acceptance as a policy not only for advanced economies but also among developing economies. Advanced economies have greater opportunities for the development of green industries based on their high technology and large energy consumption. However, developing countries, which have much energy resources, are paying increasing attention to green growth. The reason being that changing their energy dependent economies to industrialized ones with accumulated wealth by energy resource export is one of their economic policy key goals. Green growth policy is being considered as one of the better options for sustainable growth and economic diversification.
Green growth policy is an industrial policy applicable under the WTO regime. However, the green growth policy of developing countries as an industrial policy would be different from that of advanced countries. Developing countries would rather focus on the improvement of their energy efficiency and the development of renewable energies appropriate for their individual circumstances, than the reduction of greenhouse gases. In addition, developing countries must utilize fully the opportunity for industrialization through the green growth policy. To this end, they must establish their master plans for basic infrastructure such as electrical grid installation, reflected in demands of green industries. It will be the ground for industrialization by green industries.
Kazakhstan, an energy-rich developing country, has yet to enact an economic growth policy that includes green growth. However, the industrial diversification program of Kazakhstan, named as ‘the State Program of Forced Industrial and Innovative Development 2010~2014,’ does have elements of green growth policy. It is written in the basic principles of this program that the introduction of a green economy represents the fundamental direction of Kazakhstan's economic growth. And the program includes policies for energy efficiency improvement and for renewable energy development. Actually, the program is for industrialization but not exclusively green growth. So it does not have sufficient instruments for the green growth of Kazakhstan. To stimulate the green growth of Kazakhstan, Kazakhstan has to make the promotion plans for the industries related to green industries and the infrastructure construction plans to create the demand of green industries. The prospective green industries in Kazakhstan include energy saving and efficiency, wind power, and power grid including the smart grid industry.
To reinforce the economic partnership for green growth between Korea and Kazakhstan, cooperation among both governments and both industries is necessary. First, at the government level, Korea needs to designate Kazakhstan, which has a relatively free business environment, as the core partner country for green growth in the CIS region. Second, Korean government should give support to the diplomatic efforts of Kazakh government to take the lead of green economy internationally. Third, the Korean government should combine the green growth cooperation policy with Kazakhstan with the Knowledge Sharing Program of Korea. It will heighten the effectiveness of Korea's green growth cooperation with Kazakhstan. Fourth, Kazakhstan's government partner for green growth should be the Ministry of Industry and New Technology, which oversees the industries of Kazakhstan. Fifth, Korea should earn the designation as a prior partner country in the energy efficiency improvement section of ‘the State Program of Forced Industrial and Innovative Development 2010~2014’ like EU. Sixth, the loans for encouraging Kazakhstan's green growth and the overseas expansion of Korean green industries should be linked strategically. Seventh, it is necessary to cooperate for the nurturing of green technology manpower and for green R&D. Eighth, Korea and Kazakhstan need to make joint efforts to restore ‘Non-actionable Subsidies’ in the WTO regime for the development of the green industries.
At the industry level, both countries need to cooperate in the industries like wind power, LED and smart grids. These industries are the prospective industries for Kazakhstan and among Korea's strategic industries for green growth. In addition, R&D and training of engineers for green industries, the establishment of joint ventures and investment in Kazakhstan, and the development of Kazakhstan as the strategic base for CIS regions' green markets should become the cooperation agenda regarding industries of the two countries. Also, other related industries are to be developed together in wind power, LED and smart grid industries to expand the economic effects of green growth policy. And 'the growth-together strategy' should be used to overcome the disadvantages of Korean green industries by the advantages of its other related industries for the cooperation with Kazakhstan. The other related industries include shipbuilding, materials industry, semi-conductor industry, solar power industry, IT industry and etc.
Finally, this case study about Kazakhstan's green growth identifies implications for the future direction of cooperation with developing countries for green growth. First, potential green markets do exist in energy rich developing countries and these markets need to be developed. Second, the green growth cooperation policy for developing countries may be used as the diplomatic leverage for improving Korea's global position. Also, the green growth cooperation policy needs to be combined with Korea's Knowledge Sharing Program for the effectiveness. Third, it is necessary for Korea to build an effective WTO regime to grow green industries together with the developing countries that pursue green growth. Fourth, Korea's economic cooperation with energy rich developing countries should drive the transition from energy resource development to green industry development for reciprocal economic growth.

Executive Summary

I. Introduction

II. Inflation Targeting and the Business Cycle

III. Monetary Business Cycle Accounting
1. The Prototype Model
2. The Business Cycle Accounting Procedure

IV. Data

V. Results
1. Quantitative Results
2. Robustness Checks

VI. Conclusion

References

This paper examines the effectiveness of inflation targeting to stabilize the real economy of the advanced countries where inflation targeting was adopted in the early 1990s. This paper employs the monetary business cycle accounting methodology recently developed by Šustek (2011) which is an extended version of Chari, Kehoe, and McGrattan (2007) to monetary models in order to quantitatively assess inflation targeting. Our main finding is that the monetary policy wedge, which captures economic fluctuations caused by monetary policy, has significantly declined since the implementation of inflation targeting in the early 1990s. The results suggest that advanced economies such as Australia, Canada, Sweden, and the UK, that adopted inflation targeting in the early 1990s have been successful in stabilizing business cycle fluctuations.

Islamic project finance is a project finance using Shariah compliant Islamic finance scheme. Recently, the role of Islamic project finance has been increased with the growth of Islamic financial industry based on high oil price, in particular, after the break of global financial crisis. The aim of the study is to analyze structures, trends and risk factors of Islamic project finance and to draw some policy implications from the analyses.
First of all, this study reviews the definition and features of Islamic project finance and explains basic structures of Islamic finance utilized in project finance with market trends examined. Chapter three analyzes specific structures and characteristics of Islamic project finance in the GCC countries through five case studies. Chapter four looks through potential risk factors in Islamic project finance that might occur. In chapter five, we suggest several policy implications that need to consider when the Islamic project finance scheme is applied to project finance involved with Korean companies and financial institutions.
For the policy implications, it is necessary to establish a research center specialized in comprehensive research on new products or schemes in Islamic finance, Islamic law or regulation in various countries of the world. Second, a large number of professional manpower related to Islamic finance should be trained through short term training courses or graduate-level academic courses on Islamic finance, shariah and area studies in the long term. Third, governmental supportive system should be established to help Korean companies and financial institutions to cope with lack of experiences, knowledge or experts. Fourth, it is needed to build institutional and legal infrastructure to introduce Islamic finance scheme to Korea.

This study focuses on the economic feasibility of ODA projects using benefit-cost analysis. Within a short period, the surge in the number and scale of ODA projects has presented difficulty in the project management and the evaluation of the performance. Therefore, it is time to require the tool that enhances accountability by rigorously analyzing economic efficiency.
In addition, previous studies on the benefit-cost analysis of ODA projects are very rare. The purpose of this study is to present how to apply a benefit-cost analysis to ODA projects. As the procedures for the analysis are devised to reflect both the perspective of the recipient and donor countries to the extent possible, the application of the procedures enables ODA projects to be executed efficiently.
This study argues that the benefit-cost analysis of ODA projects should be more aggressively utilized. For example, the benefit-cost analysis can be applied to a preliminary investigation and/or a pre-feasibility study to verify the efficient enforcement of ODA projects before a feasibility study is performed. At the same time, we have to note both the uniqueness of ODA projects in distinction from other domestic public projects and the constraints that can occur when applying a benefit-cost analysis. For this purpose, the present study deals with the procedures and evaluation criteria of benefit-cost analysis, benefit and cost items, and existing practices.

The advent of the mass production system in the process of economic development has enabled humanity to improved the quality of life after the industrial revolution. During the process, however, the consumption of fossil fuels soared and the accumulation of greenhouse gases has led to global warming. Moreover, the rapid depletion of fossil fuels also brought with it the problem of resource scarcity.
The confirmation of the purpose of sustainable development in recent Rio+20 and green economy has encouraged every country in the world to make an appropriate effort to solve the challenges common to all of humanity. As green economy is  a concept centered on environment friendly economic growth, the very public emphasis given to the idea implies movement in a desirable direction. 
In 2008, Korea has proposed green growth as a new economic development strategy for the future and has been participating in related international activities. As a socio-economic development strategy, the green growth policy seeks to improve the quality of life by achieving environment friendly economic growth via utilization of renewable energy and green technology. Furthermore, Korea aims to become a role model for green growth worldwide, by supporting developing countries' response to climate change.
The objective of the study is to present Korea's ODA policy direction for its steady support to developing countries' response to climate change and green growth, by examining the relationship between sustainable development and green growth policy. Also, this study analyzes the difference between 'green economy' and 'green growth' which are very similar as concepts. Moreover, this study introduces a concept of so-called 'green growth ODA', which reflects the value of green growth that Korea pursues and compares the 'aid to environment' as defined by OECD Development Assistance.
The policy suggestions of the study are as follows:  first of all, the government should establish a specific objective, for trailblazing in green growth ODA. It is also necessary to promote green growth ODA in the context of sustainable development. In this regard, it is important to share with developing countries Korea's experience with promoting green growth as a national policy. To develop policy and implement projects related to green growth, the creation of a control tower is recommended at the highest level of government. The enhancement of our own human capital to facilitate green growth ODA policy is crucial. Lastly, the green growth ODA policy should consider environmental integrity as well as economic growth of developing countries.    

 

As China has rapidly risen, it became the most important trade and investment partner, and the formation of Greater China bridging China-Hong Kong-Taiwan as China is its center. 15 years have witnessed its successful reunification with China since Hong Kong returned to China in 1997. Especially, China-Hong Kong Closer Economic Partnership Arrangement(CEPA) concluded in 2003 played a role as the key to expanding the economic cooperation through 9 times supplementary agreements to CEPA. On the other hand, China-Taiwan Economic Cooperation Framework Agreement(ECFA) which was concluded in June, 2010 and came into effect in September, 2010 is expected to strengthen the economic ties between the two countries and to enormously affect the neighbor countries in the region. Therefore, this report firstly examines the historical background, development and the main issues of economic integration among greater China. Then, the economic integration will be scrutinized in terms of trade and investment between China-Hong Kong, and China-Taiwan. The institutional integration will be analyzed by comparing the commitments in CEPA and ECFA with those in the other Chinese FTAs concluded with other countries. Also, Guangdong and Fujian as the two main regions in China to cooperate with Hong Kong and Taiwan respectively will be the case study to present the economic cooperative programs and cases that may provide the meaningful implications for us.
Main findings in this study are as follows;
First of all, it is essential to analyze and to set up with a plan to deal with the mid and long term impacts of ECFA on Korea’s export to China. According to the analysis on the short term impacts of ECFA EHP(Early Harvest Program) coming into effect, the detrimental effect on Korea’s export to China turned out to be limited. In the medium and long term, however, the full-scale ECFA agreement in trade of goods will do considerable harm to the export of Korean products that are competing with Taiwanese goods in Chinese market. The competitive edge  will be given to Taiwanese products, especially in the highly protective (with high tariff rates) industries for the domestic demand. As for the highly protective industries for the external demand, on the other hand, the proportion of processing trade is relatively high so that the short term effect may be insignificant while the Korean market share in China will be encroached owing to the price disadvantage in the long term. In the industries for the domestic demand with relatively low tariff rates, probably the Taiwanese products will erode the Korean market share in China to a certain degree. The industries for the external demand with low tariff rates such as telecommucation equipment and machine, electronic parts, and computer related products will be comparatively safe from the damage caused by ECFA. Still, these products see the keen competition with the Taiwanese in Chinese market, and China has the strategy to change its economic growth engine from export to domestic consumption where the possibility cannot be completely excluded that the Korean market share in China will be pinched by Taiwanese products in the long term.
Second, the general policy of the economic cooperation with Greater China should be redirected; the biased trade policy only toward mainland China into a balanced trade policy for the whole Greater China considering the strategic importance of Hong Kong and Taiwan. Otherwise, the economic cooperation with mainland China should become more refined and sub-divided. As the reinforcement of economic cooperation among Greater China grows, the focal points of growth will be multipolarized. Therefore, the economic cooperation with the mainland China should be changed from the one that too much importance has been given only to the coastal areas into the one that diverse interests are reflected according to the multipolarized system of Chinese regional economic development.
Third, the implications for the Korea-China FTA are as follows;
i) Korea and China will also be able to broaden the liberalization through regular negotiations in the KCFTA framework as the China-Hong Kong CEPA. ii) As for opening trade in goods, we should aggressively negotiate the early tariff reduction for the intermediary goods that are severely competing with Taiwanese goods in Chinese market because Korea and Taiwan along with Japan are playing a role in providing the intermediary goods in China. This approach is positively necessary in order to prevent the market share erode by ECFA and to reap the fruit of Korea-China FTA in early stages. iii) For the service negotiations, we may request China's further liberalization in the sectors where China is more likely to open because in the FTAs with other countries China has already made commitments in GATS plus or DDA plus level, and also made additional commitments in CEPA. iv) the pilot basis liberalization measures included in CEPA also can be adopted in Korea-China FTA. That is to say, in the CEPA agreement, the trial liberalization measures were tested first in Guangdong province in the vicinity of Hong Kong and have been expanded in other provinces after they prove to be successfully implemented in the tested region. Also, the interactions and cooperation with Fujian province adjacent to Taiwan have been strengthened after ECFA. Therefore, further liberalization and cooperation on the pilot basis, in the framework of Korea-China FTA, can be made first in the regions where the trade and investment are vigorously made between the two countries. v) The joint feasibility study of Korea-Taiwan FTA may be initiated on non-governmental basis in terms of protecting the Korean market share in Taiwan from other countries and diversifying the trade strategy toward Greater China. The mainland China’s opinion on Korea-Taiwan FTA negotiation should never be given too much consideration based on the “One China” principle. vi) It seems desirable to have more active cooperation with Hong Kong service enterprises and Taiwan manufacturing firms by utilizing CEPA and ECFA in order to effectively advance into Chinese market.

During the past decade, soaring population and rapid progress in economic and social development led to detrimental impacts on the global environment. The world has experienced much environmental destruction, climate change, as well as loss in biodiversity. Environmental issues have significant impact especially on developing countries since a majority of the population depend largely on natural resources. As has been witnessed in recent natural catastrophes caused by climate change, people in less developed countries are often hit harder than those in wealthier nations. Such facts has promoted understanding on the relationship between development and environment among stakeholders in international development. More people are concentrating on the intimate link between sustainable development and the environment.
The importance of the environment in development was first brought to attention at the UN Conference on Human Environment in 1972. Since then, the focus of discussions has been on sustainable development which continued throughout the 1980s and the 1990s. In recent decades, people have come to realize that human development is unattainable without direct intervention on environmental issues, namely global climate change. At the Rio Summit on June 2012, countries around the world have reaffirmed that sustainable development is a common goal for all of humanity. Thus, policy trends such as environmental “mainstreaming” and “integrating the environment and development” are being highlighted. Such transition in development and environmental issues suggest that environmental considerations must be included in setting the policy and making decisions regarding development. It also seeks to promote resource efficiency, avoid environmental destruction, and protect impoverished populations against negative environmental impacts caused by development. It emphasizes a close correlation between all regimes regarding development and environment.
While environmental ODA is one of its core international development topics, the approach taken by Korea in its ODA policy tends to focus on quantitative increases. It is a matter of fact that there is room to improve  in terms of environmental mainstreaming or integration of environment and development. In other words, policy improvement is necessary for the comprehensive pursuit of environmental issues in development programs. This study first examines previous discussions on development and the environment, then reviews the efforts made by aid organizations making efforts to incorporate environmental considerations into development work, and finally, the study suggests areas for policy improvement.
Chapter 2 begins by reviewing past discussions on development and environment at the international level. The chapter also outlines efforts made by OECD DAC in order to support sustainable development in developing countries. By utilizing the DAC policy marker system, we look at the progress and characteristics of “environmental aid” - ODA projects with environmental considerations - promoted by DAC members in chapter 3. In chapter 4, the study observes the cases of Australia, Canada, the World Bank and UNDP. Australia and Canada were chosen as examples, as they are non-EU members similar in the amount of environment-related assistance compared to Korea. Chapter 4 also provides case studies of the World Bank, known for its environmental strategies and safeguard system, and UNDP which emphasizes environmental capacity building for the recipient country. Finally in chapter 5, the study reviews environmental considerations in Korea's ODA policy. Based on the findings, the study draws practical policy improvement suggestions which correspond with  international trend and standards. For instance, while individual agencies in development implementation promote integrating issues in environment and development through guidelines, safeguard systems and so on; even a holistic consideration of the environment and development is indeed insufficient at the general ODA policy-making level. Consequently, the study suggests a revised role of the Green ODA Committee, so that it could serve as the core environmental consideration in all development assistance programs. Also, it proposes establishing an integrated system for development and environment, approach methods specified by stage, improved cooperation between the central bureau and the department of environment, and increased support for recipient countries' capacity building.