Policy Analyses
PUBLISH
Policy Analyses
-
Has Trade Intensity in ASEAN+3 really Increased?
This study examines the observable phenomenon of growing trade intensity among the ASEAN+3 countries over the last twenty years by using a standard gravity approach. While there is a conventional belief that trade intensities with..
Heungchong Kim Date 2002.11.30
Trade structureDownloadContentSummaryThis study examines the observable phenomenon of growing trade intensity among the ASEAN+3 countries over the last twenty years by using a standard gravity approach. While there is a conventional belief that trade intensities within CJK (China, Japan and Korea) and between CJK and ASEAN have increased, we cannot find proper evidence that the relations have intensified over time beyond the gravity factors, considering the change of pattern in the gravity residuals. Moreover, with the exclusion of Hong Kong, the fitted trade flows projected by the gravity equation can explain most of the actual flows within CJK. With respect to the trade relations between CJK and ASEAN, substantial time-serial fluctuations in trade intensity disappear if the two entrepots of Hong Kong and Singapore are excluded. (The rest is omitted.) -
Reverse Sequencing: Monetary Integration ahead of Trade Integration in East Asia?
Regionalism is taking two forms. It is occurring firstly through free trade arrangements and secondly through monetary arrangements. These trade and monetary integration processes imply that geographically proximate countries hang..
Kwanho Shin et al. Date 2002.11.30
Free trade, Monetary policyDownloadContentI. Introduction
II. Europe's Experience: Trade Integration ahead of Monetary Integration
III. Is There Any Difference in East Asia?
IV. Does East Asia Satisfy Optimum Currency Area Criteria?
V. Introducing a Monetary Union ahead of FTA
VI. Conclusion
ReferencesSummaryRegionalism is taking two forms. It is occurring firstly through free trade arrangements and secondly through monetary arrangements. These trade and monetary integration processes imply that geographically proximate countries hang together to foster trade on the one hand and to manage intra-regional exchange rate stability on the other. These two processes interactively reinforce each other. (The rest is omitted.) -
Korea's Road to a Sound and Advanced Economy
The purpose of this conference is to identify policies to put Korea on the road to a sound and advanced economy. I will try to make my contribution to this discussion. but at the outset I want to emphasise that, given the wide-ran..
co-authors Date 2002.11.30
Economic development, Economic developmentDownloadContentSummaryThe purpose of this conference is to identify policies to put Korea on the road to a sound and advanced economy. I will try to make my contribution to this discussion. but at the outset I want to emphasise that, given the wide-ranging reforms introduced during the past five years, many of the problems that Korea now needs to overcome, or the new strengths it wishes to build, are also challenges for other OECD Members. Of course, there are still some exceptional issues for Korea. But for the most part the challenges to Korea today are similar to those in other OECD countries. And in some domains Korea is out in front leading the pack. -
Bailout and Conglomeration
This paper develops a model of business groups in emerging markets where banks do not have sufficient capability to accurately distinguish between good (or high productivity) and bad (or low productivity) borrower firms. However, ..
Se-Jik Kim Date 2002.11.20
Financial policy, Exchange rateDownloadContentSummaryThis paper develops a model of business groups in emerging markets where banks do not have sufficient capability to accurately distinguish between good (or high productivity) and bad (or low productivity) borrower firms. However, the bank can observe whether each firm repays on the repayment day, infer the probability of bad firms among the defaulted, and use liquidation as a screening device to select good firms. For stand-alone firms, the bank may find it optimal to liquidate all the defaulted, given that the chance of bad firms among the defaulted is large. In contrast, for business conglomerates, the optimal policy can be a full bailout since conglomeration, through cross debt payment guarantees, hinders the bank from obtaining information on the productivity of individual firms that is needed to sort out the firms to be liquidated. Expectation of such a bailout policy may encourage risk-averse firms to form a conglomerate to serve as an information-diluting device that helps eliminate the risk of liquidation. -
Korea's Trade Policy Regime in the Development Process
Korea's development strategy during the early stages was based on unskilled labor. Since the 1980s, however, it has focused on skilled labor and technology through the support of an aggressive liberalization policy. Specifically, ..
Nakgyoon Choi Date 2002.11.15
Trade policyDownloadContentSummaryKorea's development strategy during the early stages was based on unskilled labor. Since the 1980s, however, it has focused on skilled labor and technology through the support of an aggressive liberalization policy. Specifically, trade and financial liberalization policies were implemented to upgrade Korea's economic structure. Liberalization and deregulation polices were accelerated in order to overcome the financial crisis in the late 1990s. (The rest is omitted.) -
Currency Union in East Asia
Historically East Asian countries were integrated no less closely than those of the European Union before they lost the linkage between them in the early twentieth century, after being forcefully occupied by the western countries ..
Edit. Han Gwang Choo.Yunjong Wang Date 2002.11.10
Financial integrationDownloadContentSummaryHistorically East Asian countries were integrated no less closely than those of the European Union before they lost the linkage between them in the early twentieth century, after being forcefully occupied by the western countries and Japan. Recently the dynamism represented by the highly growing trade and investment volumes in the region is a major factor, playing an important role in recovering the lost linkage. (The rest is omitted.) -
Market Opening of the Chinese Service Industry and It's Implicaion for Foreign Enterprises
The Korea Institute for International Economic Policy hosted an international conference under the title of 'Market Opening of the Chinese Service Industry and its Implication for Foreign Enterprises.'This conference provided the ..
WL Park et al. Date 2002.10.30
Economic openingDownloadContentSummaryThe Korea Institute for International Economic Policy hosted an international conference under the title of 'Market Opening of the Chinese Service Industry and its Implication for Foreign Enterprises.'
This conference provided the two countries with valuable insights and perspectives. Moreover, it is China was given important implications for market opening and the management of regulations and foreign enterprises trying to access to the Chinese market. (The rest is omitted.) -
Diffusion Factors of Electronic Trade for Trade Facilitation in the APEC Region: A Case of Korean Small Business
In recent times, one of primary efforts of the APEC shits from trade liberalization to trade facilitation reflecting the failure of early voluntary sectoral liberalization(EVSL) among APEC economies. The failure of trade liberali..
Yongkyun Chung et al. Date 2002.10.30
Economic cooperation, Free tradeDownloadContentExecutive Summary
Ⅰ. Introduction
Ⅱ. Electronic Trade and Trade Facilitation in APEC region
Ⅲ. Technology Diffusion Factor Model
Ⅳ. Empirical Results
Ⅴ. Policy Implications
Ⅵ. Conclusion
ReferencesSummaryIn recent times, one of primary efforts of the APEC shits from trade liberalization to trade facilitation reflecting the failure of early voluntary sectoral liberalization(EVSL) among APEC economies. The failure of trade liberalization seems to originates from two innate obstacles in attaining trade liberalization among APEC economies. The first obstacle faced with APEC is great diversity of member economies in the perspective of stages of economic development, economic system and size of the income level. The second obstacle is related with the fact that there are no effective instruments to enforce member economies to implement trade liberalization among non-binding APEC economies. For those reasons, it is difficult to implement trade liberalization in the APEC region . (The rest is omitted.) -
An Overview of Currency Union: Theory and Practice
The Mexican and East Asian currency crises and their sequels in Russia, Brazil, Turkey and Argentina reminded us that an exchange rate regime lacking transparency and credibility could induce abrupt interruptions of short-term cap..
Sammo Kang et al. Date 2002.10.25
Monetary policyDownloadContentExecutive Summary
I. Introduction
II. The Benefits and Costs of Currency Union
1. The “Pluses”
1) Saving Transaction Costs
2) Eliminating Exchange Rate Variability and Risks
3) Enhancing Price Stability
2. The “Minuses”
1) Loss of Sovereignty, Independent Monetary Policy, and the Lender of Last Resort
2) Loss of Seigniorage
III. Optimum Currency Area: Theory and Evidence
1. Optimum Currency Area Criteria
2. The Endogeneity of the Optimum Currency Area Criteria
3. Is Europe an Optimum Currency Area?
4. Is East Asia an Optimum Currency Area?
IV. Various Options for Regional Exchange Rate Stability in East Asia
1. U.S. Dollar Standard
2. Yen Bloc
3. Currency Basket Peg System
V. Concluding Remarks
ReferencesSummaryThe Mexican and East Asian currency crises and their sequels in Russia, Brazil, Turkey and Argentina reminded us that an exchange rate regime lacking transparency and credibility could induce abrupt interruptions of short-term capital flows, subsequently leading to costly output loss, social dislocation, and frequently political turmoil. One widely shared view is that soft-peg exchange rate regimes are extremely vulnerable and inherently crisis-prone in a world of volatile capital movements. Consequently, a number of relatively fixed rate countries in East Asia were encouraged to adopt floating rate regimes for their own good as well as the broader good of the international community. An underlying notion of this argument is that a more flexible exchange rate regime leads to an awareness of risk exposures related to exchange rate fluctuations on the part of both investors and borrowers, while a pegged exchange rate regime offers an implicit guarantee to creditors that leads to moral hazard and financial vulnerability. (The rest is omitted.) -
Prospects for Financial and Monetary Cooperation in East Asia
The growing interdependence in the world through trade and financial integration has heightened the need to engage in international and regional economic cooperation. This was never demonstrated more clearly than during the Asian ..
Yunjong Wang Date 2002.10.25
Financial integrationDownloadContentExecutive Summary
I. Introduction
II. Rationale for Regional Financial Cooperation
III. Status of Regional Financial Cooperation
IV. Evaluation of Existing Regional Institutions
V. Monitoring and Early Warning Signals
VI. Leadership Issue and Key Players in the CMI
VII. Future Agenda for Deeper Cooperation
References
SummaryThe growing interdependence in the world through trade and financial integration has heightened the need to engage in international and regional economic cooperation. This was never demonstrated more clearly than during the Asian financial crisis of 1997. The reality is that financial instability is unlikely to remain within the national borders of the country of origin. (The rest is omitted.)
공공저작물 자유이용허락 표시기준 (공공누리, KOGL) 제4유형
대외경제정책연구원의 본 공공저작물은 "공공누리 제4유형 : 출처표시 + 상업적 금지 + 변경금지” 조건에 따라 이용할 수 있습니다. 저작권정책 참조