Proceedings
PUBLISH
Proceedings
-
East Asian-Latin American Economic Relations: A Korean Perspective after the International Financial Crisis
Although there had been interregional "political attempts" to envision a new development model, to escape from the core-periphery economic structure as shown in the New International Economic Order movement of the 1970s, the "actu..
Won-Ho Kim Date 2000.05.10
Economic cooperationDownloadContentSummaryAlthough there had been interregional "political attempts" to envision a new development model, to escape from the core-periphery economic structure as shown in the New International Economic Order movement of the 1970s, the "actual" economic relations between Asia and Latin America were not really of any consequence until the late 1980s. The post-debt crisis Latin America's economic opening and the emergence of most Asian economies to the newly-industrializing status served as momentum for accelerated inter-regional trade and investments, and for deepened mutual economic interdependence. The formation of the Southern Common Market (MERCOSUR) also stood out in its appeal to the interests of Asian entrepreneurs. Its member countries' political economic stability and market potential induced Asian businesses to enter South America with a more localized mindset. The earlier Asian focus on Central America, the Caribbean and Mexico as a detour to the ultimate U.S. market now contrasted with the new concentration on local markets and meaningful investments in South America, particularly in Brazil.
Japan, Korea, Taiwan, and Hong Kong are the major Asian trade and investment partners for Latin America. Although Japan, without any doubt, is the largest exporter and importer in absolute terms, Latin American shares of Korea's total were the highest among Asian countries trade in 1996 and 1997. Korea's investments in Latin America in 1997 recorded the highest amount in its history, US$614 million, accounting for a record-high 11.7 percent of Korea's total overseas investments. All this meant that the Latin American market became more important to the Korean economy than to any other Asian economy.
Meanwhile, Brazil, Chile, Argentina, Mexico, Peru, and Ecuador, in that order, are the main exporters to the Asian region. Among others, Chile and Peru are focusing more on Asian markets as part of their trade diversification strategy, and this explains why they are the only two South American countries joining the Asia-Pacific Economic Cooperation (APEC).
This interregional partnership, formed in the early 1990s, has come into crisis recently. The momentum for expansive trade and intensive investments was threatened by the financial crisis in Asia first, and then by the contagion of this crisis over Latin America, and finally by policy responses here and there.
What was worse than the 1980s situation, however, was the contagion of this Asian crisis over Latin America in 1998 and 1999. The real threat, at the turning point of the century, was the change of mood between the Asian and Latin American policymaking fronts. As more Asian goods, cheaper with the currency devaluations, appeared in the local markets of Latin America, several Latin American countries erected tariff and non-tariff barriers to restrict Asian imports. This might signal a new era of conflict and severe competition between Asia and Latin America, ending a short-lived cooperation period.
Ironically, however, the crisis opened and widened the opportunity and space for better mutual understanding, strategic cooperation or alliance, and institutionalization by sharing the new economic model, political and socioeconomic challenges at both the domestic and international fronts. First, Asia's first serious financial crisis since the late 1970s/early 1980s served as the momentum for an enhanced awareness of the interdependence on each other. One region has come to understand the dynamics of the liberalized trade regime, and that it was increasingly vulnerable to the financial situation and policy responses of the other. Secondly, such awareness of interdependence promotes strategic alliance between the two regions. Examples of the immediate outcome were the free trade initiatives between Korea and Chile, and between Japan and Mexico. The ultimate Korea-Chile and Japan-Mexico free trade arrangements will represent a new momentum for Asia's presence in Latin America and for redefining strategy in its relationship with the region and ultimately intensify intra-industrial trade and cooperation. Thirdly, a more serious effort toward the institutionalization of Asian-Latin American relations has been undertaken in the post-crisis context. The East Asia-Latin America Forum (EALAF) proposal gains significance given the traditionally low profile of Latin America in the Asian policymaking framework of international relations and vice versa. The success of such an institutionalization, however, will depend on the realization, identification and harmonization of mutual interests, problems to solve, and realistic methods in the globalized context. -
Currency Conversion in the Anti-dumping Agreement
A dumping margin calculation in involves currency conversion of either the export price or the normal value. Although the Anti-dumping Agreement permits the conversion of currency when it is necessary for the price comparison, it..
Jong Bum Kim Date 2000.04.30
Anti-dumping system, Exchange rateDownloadContentSummaryA dumping margin calculation in involves currency conversion of either the export price or the normal value. Although the Anti-dumping Agreement permits the conversion of currency when it is necessary for the price comparison, it does not provide a sufficient guideline to guard against potential distortion in the dumping margin calculation resulting from conversion. Unless the conversion is done with an appropriate exchange rate, an investigation authority's price comparison potentially results in a spurious estimate of dumping margin, in violation of the fair comparison requirement of Article 2.4 of the Anti-dumping Agreement. In particular, the distortion in the dumping margin calculation is magnified when the exchange rate moves significantly.
This paper reviews the currency conversion clause of the Anti-dumping Agreement and suggests modifications in order to address the shortcomings. -
Competition and Complementarity in Northeast Asian Trade: Korea's Perspective
This paper reviews the degree of competition and complementarity among three Northeast Asian countries - China, Japan and Korea. An attempt is made to identify sectors or commodities that are expected to potentially increase trade..
Sang-yirl Nam Date 2000.04.25
Trade structureDownloadContentSummaryThis paper reviews the degree of competition and complementarity among three Northeast Asian countries - China, Japan and Korea. An attempt is made to identify sectors or commodities that are expected to potentially increase trade between Korea and China or Japan. For the analysis, bilateral, as well as total trade at a somewhat disaggregated commodity level, are considered. In addition, various trade-related indices are utilized with an emphasis on the demand rather than supply side of international trade.
Overall, Japan and Korea are quite similar in terms of their aggregate trade structures. Japan and Korea are commonly import-oriented in beverages and tobacco, inedible crude materials, animal or vegetable oils and fats; and primarily intra-industry trade oriented in most of the manufacturing sectors.
China has quite a different trade structure from Japan or Korea. More specifically, China's export-orientation in food and live animals, beverages and tobacco, miscellaneous manufactured articles is well contrasted with its import-orientation in manufactured goods classified as materials, animal or vegetable oils and fats, machines and transportation equipment. Therefore, China is highly complementary in trade with Japan and Korea.
We also try to analyze the extent of the structural similarities (between one's exports and the other's imports and vice verse, therefore, complementarity) in international trade between the Northeast Asian countries with the index of trade conformity (ITC). The ITC denotes the overall complementarity between two countries' trade. Since the ITC can also be interpreted as a summation of each commodity's contribution, we can identify some commodities which would potentially increase trade between two countries.
The ITC analysis yielded the following implications. Korea's imports from Japan are much more likely to increase than those from China, in a potential sense. Potentially speaking, Korea's exports to the two other countries will increase relatively, somewhat more for Korea's exports to Japan than to China. Looking at it another way, in terms of potential, Korea's exports to China are much more likely to increase than are China's exports to Korea. The overall aggregate trade structures (between one's exports and the other's imports and vice versa) of Japan and Korea are quite similar, therefore complementary, and Japan's exports to Korea are potentially a little more likely to increase than are Korea's exports to Japan.
We also try to identify some commodities (disaggregated in terms of the SITC three-digit classification) which are expected to increase bilateral trade between Korea and China or Japan. For example, Korea's exports to Japan have the potential to increase in other textile apparel, men's and women's clothing excluding knit (SITC 845, 841, 842); fresh, chilled, frozen fish and meat (SITC 034, 036, 037, 012); parts for office machines (SITC 759); baby carriages, toys, games, miscellaneous manufactured goods (SITC 894, 899); aluminum, copper (SITC 684, 682); bags, textile articles, furniture (SITC 831, 658, 821); measure and control instruments (SITC 874); organo-inorganic compounds, miscellaneous chemical products, medicines (SITC 515, 598, 541); and watches and clocks (SITC 885). It was possible to identify even more complementary relationships between the countries as the product classification was disaggregated further. -
Issues in Korean Trade 1999:
This paper is a survey of some of the important issues in Korean trade during 1999. 1999 was an important year in Korean trade for several reasons. In 1999, Korea began its recovery from the Asian Financial Crisis, with its GDP..
Junsok Yang et al. Date 2000.04.25
Trade policyDownloadContentSummaryThis paper is a survey of some of the important issues in Korean trade during 1999. 1999 was an important year in Korean trade for several reasons. In 1999, Korea began its recovery from the Asian Financial Crisis, with its GDP growing by more than 10%. Much of the growth, especially in the latter half of the year, was due to a healthy export sector. Korea's exports to all major regions rose greatly. Korea's imports also rose greatly, but imports from some regions, such as Asia and North America, grew more quickly than imports from other regions such as Europe. The growth in exports was driven by such goods as semiconductors and automobiles. On the import side, the growth of imports was driven by increases in the import of capital goods due to Korea's recovery from the Financial Crisis and the recession which followed.
Such growth in exports could not help but generate trade disputes between Korea and its trading partners, most notably the United States. While the bilateral trade disputes were not as serious as they had been in the 1980s, there were some notable issues in 1999, particularly with regard to steel, semi-conductors, pharmaceuticals, and movies.
While many of these trade dispute issues were being dealt with bilaterally, between Korea and various complainant countries, the world was rapidly moving toward establishing a common multilateral rules on trade, and 1999 was an important year in the multilateral trade arena as well. On November 30 1999, the WTO Ministerial Conference was held in Seattle. The Conference was to signal the beginning of a New Round of trade negotiations designed to liberalize trade, as well as introduce multilateral rules with respect to several 'New Issues'. However, because of disagreements among member countries, the negotiations were 'suspended,' and except for certain 'built-in agenda' issues, the negotiations will not resume until the members can attain a wider agreement on various issues concerning the New Round negotiations.
Korea submitted 12 official position papers to the WTO on various topics concerning the New Round. These topics include agriculture, services, the anti-dumping agreement, market access for industrial goods, trade and investment, trade and competition policy, and transparency in government procurement. -
Guide to the Uruguay Round Agreements
This study seeks to correct the general public's perception of the Uruguay Round Agreement to promote awareness of its benefits through concrete examples. Furthermore, by explaining issues disputed in the Uruguay Round this book a..
Euisoo Kim Date 2000.04.10
Multilateral negotiationsDownloadContentSummaryThis study seeks to correct the general public's perception of the Uruguay Round Agreement to promote awareness of its benefits through concrete examples. Furthermore, by explaining issues disputed in the Uruguay Round this book attempts to enhance public interest and understanding on the Uruguay Round. -
Korean Plan for Strengthening Competitiveness for the 21st century
The Korea Institute for International Economic Policy organized a policy forum on 'Korean Plan for Strengthening Competitiveness for the 21st century' with the support of Korean Ministry of Finance.The purpose of this forum was to..
Yunjong Wang ed. Date 2000.02.01
Economic developmentDownloadContentSummaryThe Korea Institute for International Economic Policy organized a policy forum on 'Korean Plan for Strengthening Competitiveness for the 21st century' with the support of Korean Ministry of Finance.
The purpose of this forum was to analyze the problems of global competitiveness and its implication. In addition, it provided a forum for discussions on Korea's plans for strengthening competitiveness in the digital sector. These proceedings are a collection of the lectures, papers and formal comments made by the speakers and discussants. -
-
-
A New Strategy for Northeast Asian Economic Cooperation: Investment Cooperation
As the world moves rapidly towards globalization in the 1990s, the movement towards economic cooperation in the Northeast Asian Region steadily gains momentum. Although interest in economic cooperation in the Northeast Asia Region..
Seong-Bong Lee ed al. Date 1999.12.30
Economic cooperationDownloadContentSummaryAs the world moves rapidly towards globalization in the 1990s, the movement towards economic cooperation in the Northeast Asian Region steadily gains momentum. Although interest in economic cooperation in the Northeast Asia Region has been elevated due to the rapid progress of regionalism in the world economy, political instability and security issues in the region have impeded the progress of the movement towards actually achieving economic integration on the same level as, and similar to either the EU or NAFTA. However, since the attitude of the Northeast Asian Countries has changed since the coming of the Asian Financial Crisis, it has become necessary to develop a framework for Northeast Asian Economic Cooperation.
This paper searched for economic cooperation strategies with a focus on Investment Cooperation among the Northeast Asian Countries in the context of Economic Cooperation issues.
The first priority of Investment Cooperation in NEA is to enhance intra-regional investment between Korea, China and Japan. Differing from other regional characteristic, of the NEA investment relation, is that a one-way flow has dominated investment. Japan has unilateral relationships with both Korea and China, and Korea's FDI relationship with China is also unilateral. The core issue of the facilitation of intra-regional investment will be to develop a production specialization in the region. This could be realized through transfer of an industry which lost comparative advantages, from Japan to Korea and China, or from Korea to China.
Another objective of Investment Cooperation in NEA is to establish the Northeast Asian Investment Area. With the prospect of NEA economic integration lurking in the future, a cooperative approach towards FDI inducement into NEA will have long lasting individual and common consequences. The concept of the Northeast Asian Investment Area can be designated as the development of a regional production network by multinational corporations.
The third objective of Investment Cooperation in NEA is to develop a framework for the common utilization of resources. A representative example would be a joint investment project involving the construction of intra-regional infrastructure.
Coordinated policy measure need to be develop to enable enhanced investment cooperation in Northeast Asia. Each of the Northeast Asian countries has already adopted many domestic policy measures to support overseas investment as well as to encourage foreign direct investment. By using these measures as a foundation, we may then develop policies along regional lines with regards to investment cooperation. Possible policy measures may include: 1) information and technical support, 2) financial assistance, 3) investment protection, 4) deregulation, and 5) investment incentives.
The policy measures for investment cooperation in NEA may be grouped into short, middle and long-term strategies. The short term(by the year 2000) strategies may include construction of the Northeast Asian Investment Information Network, expanding upon financial support mechanism and further developing protection for investment projects consistent with the objectives of investment cooperation in NEA.
As midterm(by the year 2005) strategies, we suggested drawing up the NEA Investment Protection Agreement, reviewing the current domestic investment barriers as a starting point for investment liberalization in NEA and establishing the NEA Investment Fund to support investment within the region.
The long term (by the year 2010) strategies may include concluding the NEA Investment Cooperation Agreement, which provides 3-party joint incentives to investment projects, establishing the NEA Development Bank and setting up the principles of the NEA Framework on Investment, which assumes a free investment area of NEA. In the long run, the Treaty will be incorporated within the Framework Agreement on ASEAN Investment Area(AIA) to be developed into the East Asia Framework on Investment. -
The Overseas Chinese Economy in Esat Asia and Exploit its Capital
The role and importance of overseas Chinese capitals have attracted more attention in the regional and world business circles since the overall economy in the East Asia has made a remarkable progress and China's economy has rapidl..
Soo Woong Choi et al. Date 1999.12.30
Economic cooperationDownloadContentSummaryThe role and importance of overseas Chinese capitals have attracted more attention in the regional and world business circles since the overall economy in the East Asia has made a remarkable progress and China's economy has rapidly developed in recent years. Especially, the economies in China, Hongkong and Taiwan have attracted even a keener attention as they were able to maintain their traditional stance during the recent Asian economic crisis, which inflicted a sever damage to all the other Asian economies.
Overseas Chinese capitals have steadily grown by positively encountering the ever-changing economic surroundings based on their social, cultural and historical backgrounds. According to their traditional orientation toward safety, they have grown into large business groups through investments focused on real estate and financing business. However, to comply with the recent changes in external economic conditions and internal management environment the pursue diversification of their business lines.
Under these circumstances, Korean business companies should consider the possibility of utilizing the widespread network of business connections and the ability of raising funds on their counterpart overseas Chinese capital.
The best candidates for strategic business alliance with overseas Chinese capital could be selected among the following business lines. First of all, the financing businesses will be able to contribute to Korean Financial businesses, currently under a comprehensive and extensive reorganization. Especially, strategic alliance with overseas Chinese capital in financing business lines will contribute to the successful restructuring of Korean financing sector.
The second candidate will be real estate development business. In the past, the overseas Chinese capital invested in cheap land where they built houses and small towns for immediate profit. In recent years, however, they have switched to long-term investment in social infrastructure. They have actively participated in large-scale construction projects in China. The Korean companies will have more opportunities in entering the Chinese construction market under a consortium with the overseas Chinese capital.
The third promising area for collaboration is the IT industry. Considering the IT industry has a very strong growth potential, Korean companies should do feasibility study for strategic business alliance with overseas Chinese capital. Most of all, it would be quite feasible for us to participate in wire and wireless telecommunications projects in China by forming a consortium with the overseas Chinese capital. Especially, When our technical experiences are coupled with ample funding capacities of the overseas Chinese capital, we could accomplish bigger economic achievement.
As mentioned above, the strategic business alliance with overseas Chinese capital such as Hongkong, Taiwan and Southeast Asian's Chinese capital, will be a effective method to enter Chinese market.
공공저작물 자유이용허락 표시기준 (공공누리, KOGL) 제4유형
대외경제정책연구원의 본 공공저작물은 "공공누리 제4유형 : 출처표시 + 상업적 금지 + 변경금지” 조건에 따라 이용할 수 있습니다. 저작권정책 참조