Policy Analyses
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Policy Analyses
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Evaluation of Investment Liberalization Efforts by APEC Economies
Foreign investment liberalization among member economies has been a main objective for the Asia-Pacific Economic Cooperation (APEC).The Committee on Trade and Investment (CTI) has made efforts to improve the openness of investment..
Taeho Bark Date 2006.11.30
trade structureDownloadContentIExecutive Summary
I. Introduction
II. Recent Trends of FDI Inflows to the APEC Economies
III. Non-Binding Investment Principles in the BITs andFTA-Investment Chapters
Transparency
Non-discrimination
National Treatment
Investment Incentives
Performance Requirements
Expropriation and Compensation; Repatriation and Convertibility; and Settlement
of Disputes
Entry and Sojourn of Personnel
Avoidance of double taxation
IV. Assessment of the Individual Action Plans on Investment
Assessment Procedure and Scoring Scheme
Evaluation Results for the Individual Options
Evaluation Results for the Individual Economies
V. Concluding Remarks
References
Appendix 1. Score of Sub-items for Individual Options
Appendix 2. Scores of Option for Individual EconomiesSummaryForeign investment liberalization among member economies has been a main objective for the Asia-Pacific Economic Cooperation (APEC).The Committee on Trade and Investment (CTI) has made efforts to improve the openness of investment through various approaches. The main objective of this study is to explore a strategy for the APEC economies to achieve further liberalization of investment by evaluating the general performances of the two investment instruments: Non-Binding Investment Principles (NBIPs) and Individual Action Plans (IAPs). In this paper we have showed that there are Various degrees to which twelve NBIPs were adopted in the bilateral investment and trade agreements. Some provisions were well incorporated while some others were not fully adopted. When we evaluate the cumulative improvements that appeared in the IAPs, the overall impression was disappointing. The performance of the individual economies looked even more disappointing. These may imply that the APEC's overall efforts to provide a more liberal investment environment were neither effective nor sufficient. In this paper, several policy recommendations for enhancing the effectiveness of the APEC investment liberalization process have been provided: the NBIPs must be improved; the menu of options needs drastic improvement and the process to evaluate progress needs substantial improvement.< -
Analysis on Issues and Prospects of China-Korea FTA
China and Korea are the two most vigorous economies in East Asia and both are accelerating the FTA process. A China-Korea FTA would be a key leverage point from which to move forward multilateral institutional economic cooperation..
Zhang Jianping Date 2006.11.30
free tradeDownloadContentExecutive Summary
I. Introduction
Ⅱ. The International and Regional Background of a China-Korea FTA and Its
Position in China's FTA Strategy
1. International Trends of Regional Economic Integration
2. Regional Background of a China-Korea FTA
3. Position of a China-Korea FTA in China's FTA Strategy
Ⅲ. Overall Understanding of a China-Korea FTA
1. A China-Korea FTA as a Key Leverage Point from Which to Move Forward
Multilateral Regional Economic Cooperation in Northeast Asia
2. A China-Korea FTA: A Natural Product of Full-Range Closer Economic
Cooperation between China and Korea
3. A China-Korea FTA: Boosting the Full Utilization of the Comparative
Advantages of Both Countries
4. An FTA's Potential Contribution to the Trade Balance between China and Korea
Ⅳ. Model Analysis
1. PEM model Introduction
2. Data Sources
3. Calculating the Results
4. Model Limitations
Ⅴ. Major Issues and Barriers Confronting a China-Korea FTA
1. Agriculture
2. Manufacturing Competition and Collaboration (the Hollowing-Out Issue)
3. Small and Medium Sized Enterprises and the Employment Issue
4. Impacts on other Countries
Ⅵ. Prospects
1. The Korea-US FTA, a Top Priority for Korea Now
2. A China-Korea FTA and a Korea-Japan FTA: which will be Next?
3. Timetable for a China-Korea FTA
Ⅶ. Conclusion
ReferencesSummaryChina and Korea are the two most vigorous economies in East Asia and both are accelerating the FTA process. A China-Korea FTA would be a key leverage point from which to move forward multilateral institutional economic cooperation in Northeast Asia, as well as a major move to strengthen economic and trade interactions between China and Korea. The strong growth in economic and trade relations and industrial complementariness (revealed comparatine advantage index and trade specialization coefficient calculations) between both sides has laid the solid foundations for an FTA. Partial eguilibrium model calculations reveal that a China-Korea FTA would have remarkable economic effects on both sides and bring much more benefit to Korea than a Korea-US FTA. The so-called barriers (agriculture, hollowing-out, SMEs) are not the major issues of a China-Korea FTA. The real problem blocking the process of a China-Korea FTA is geopolitical. Deciding on a China-Korea FTA is dependent on the Korean government and experts in different fields changing their worrying minds about China. We suggest that China and Korea complete feasibility studies and enter into negotiations for the purpose of enjoying mutual benefits from an FTA at the earliest possible time. Should Japan's political position remain substantially unchanged, a China-Korea FTA is likely to be signed before a Korea-Japan FTA.< -
Bankruptcy Procedures and the Efficiency of Corporate Debt Restructurings in Korea and Japan
Both Korea and Japan experienced massive corporate debt restructuring after the late 1990s. Although the apparent factors that gave rise to corporate sector distress seem differ between the two countries, i.e., Korea faced the fi..
Kenya Fujiwara Date 2006.11.06
financial policyDownloadContentExecutive Summary
Ⅰ. Introduction
Ⅱ. Issues of Corporate Debt Restructuring: Related Literature
1. Theoretical Impediments to Optimal Bankruptcy Resolution
2. Empirical Studies on the Efficiency of Bankruptcy Resolutions
Ⅲ. Corporate Debt Restructurings in Korea and Japan
1. Out-of-Court Procedures
2. Legal Bankruptcy Procedures
Ⅳ. Estimation Model
1. (VC, VL) Model
2. (VC, VL, VB) Model
3. (VM, VB) Model
Ⅴ. Sample Data and Results of Estimation
1. Sample Data
2. Results of Estimation
Ⅵ. Conclusion
References
AppendixSummaryBoth Korea and Japan experienced massive corporate debt restructuring after the late 1990s. Although the apparent factors that gave rise to corporate sector distress seem differ between the two countries, i.e., Korea faced the financial crisis of 1997 and Japan suffered from a bad loan problem after the burst of the bubble economy in the 1990s, there are several similarities. (The rest is omitted.)< -
Regional Currency Unit in Asia : Property and Perspective
This paper examines different properties of the regional currency unit (RCU) in Asia and estimates the value of the RCU as a weighted average of East Asian currencies according to the method used to calculate the ECU under the EMS..
Woosik Moon et al. Date 2006.10.25
financial integrationDownloadContentExecutive Summary
I. Introduction
II. History of Basket Currencies and ECU
III. Features of a Regional Currency Unit
IV. Calculation of the RCU
1. Methodology
2. Result for +3 Countries
3. Result for ASEAN+3 Countries
V. Strategies to Make the RCU a Parallel Currency in Asia
VI. Summary and Conclusion
References
Appendix I: RCU Rate of +3 Currencies
Appendix II: RCU Rate of Asian CurrenciesSummaryThis paper examines different properties of the regional currency unit (RCU) in Asia and estimates the value of the RCU as a weighted average of East Asian currencies according to the method used to calculate the ECU under the EMS. (The rest is omitted.)< -
Prospects for Regional Financial and Monetary Integration in East Asia
The financial crisis that erupted in 1997 changed the region's confident in such a progress and in consequence gave a strong impetus to searching for a regional mechanism that could forestall future crises. This search has been ga..
Yung Chul Park et al. Date 2006.10.13
financial integration, monetary policyDownloadContentExecutive Summary
I. Introduction
II. Financial Market Liberalization and Integration
1. Benefits of Financial Integration
2. Regional or Global Financial Integration?
3. Financial Integration and Monetary Unification
III. Capital Flows in Asia
1. Trends and Characteristics of Capital Flows in Asia
2. Stylized Facts on Capital Flows in the APEC region
3. Freer and More Stable Capital Movements
4. Policy Implications
IV. Financial Globalization and Real (Trade) Regionalization
V. Economic Rationale for a Regional Financial Arrangement in East Asia
1. Regional Financial Arrangements: Stumbling Blocks?
2. Trade Integration and Stability of Bilateral Exchange Rates
3. IMF and Capital Account Crisis Management
4. Limited and Slow Progress in International Financial Reform
5. Accumulating Reserves: a War Chest or Insurance?
6. Regional Financial Arrangements: Prone to Moral Hazard?
VI. Recent Developments in the Chiang Mai Initiative (CMI)
1. The Background of the Chiang Mai Initiative
2. Structure and Status of the CMI
3. Strengthening the CMI
VII. The Asian Bond Market Initiative (ABMI)
1. Objectives and Structure
2. Rationale and Need
VIII. Exchange Rate Policy Coordination forMonetary Unification
1. East Asian Monetary System (EAMS)
2. Pegging to Currency Baskets
3. The Asian Currency Unit (ACU): What is it and what will it do?
4. China's New Exchange Rate Regime and Growing Need for exchange rate policy
coordination
IX. Barriers to Financial Cooperation and Integration
1. Institutional Constraints
2. Leadership Issue
X. Concluding Remarks
Appendix.
1.The Joint Ministerial Statement of the 8th ASEAN+3 Finance Ministers' Meeting
4 May 2005, Istanbul, Turkey
2.Joint Message The 5th Trilateral (China, Japan and the Republic of Korea)
Finance Ministers' Meeting
3.Report of the Review of the Chiang Mai Initiative-Ways ofEnhancing Its
Effectiveness
4.Progress Report of the Asian Bond Markets Initiative (ABMI)
5.Chairman's Statement of the First East Asia Summit Kuala Lumpur, 14 December
2005
6.Chairman's Statement of the Ninth ASEAN Plus Three Summit Kuala Lumpur, 12
December 2005
7.Kuala Lumpur Declaration on the ASEAN Plus Three Summit Kuala Lumpur, 12
December 2005
ReferencesSummaryThe financial crisis that erupted in 1997 changed the region's confident in such a progress and in consequence gave a strong impetus to searching for a regional mechanism that could forestall future crises. This search has been gathering momentum and opening the door to possibly significant policy-led integration in East Asia. The adoption and implementation of the CMI and ABMI could be counted as a major step toward strengthening the financial and monetary cooperation in East Asia. (The rest is omitted.)< -
Japanese Safeguard Guidelines against Hostile M&As and its Implications for Korea
Recently in the Korean society, there has been an active expansion of discussion on the issue of hostile M&As. In Korea, the issue that is of most concern is the M&A of domestic enterprises by foreign capital. This paper i..
Sung Chun Jung et al. Date 2006.09.05
economic reform, business managementDownloadContentSummaryRecently in the Korean society, there has been an active expansion of discussion on the issue of hostile M&As. In Korea, the issue that is of most concern is the M&A of domestic enterprises by foreign capital. This paper introduces how the Japanese government responded to hostile M&A's as an example that can be referenced in Korea's efforts to solve this issue.<
The ways in which the Japanese have responded to hostile M&As has caught Korea's attention One of the first things that is noticed in Japan's response to hostile M&As is the recognition and attitude of its government. Japan's government, even after foreseeing the proliferation of hostile M&As have focused more on the associated positive effects than the negative effects. Another way in which Japan's response has differed is that in order to deal with hostile M&A takeovers, the government has presented specific guides that gives suggestions to effective ways that Japanese companies can respond to M&As.
The biggest lesson to be learned is that like the Japanese government's legal oriented, and rational response which established specific guides of suggested conducts in response to M&As, the Korean government must discuss the creation of similar guidelines. There is a need for rational and objective dialogue to take place between businessmen, M&A legal and economic experts, government officials, and other related parties to evaluate what the present condition of the M&A environment is as well as to determine appropriate preventative measures that can be exercised by businesses. In particular, we have reached a point where it is necessary to promote rational discussions on preventative measures that can be taken against hostile M&As carried out by foreign capital.
These discussions must look not only at the effect on corporate performance and business innovation but also towards improving the contributions towards the value of businesses in the long-term, discussing existing problems, as well as promoting the inflow and usage of foreign capital, which improves Korea's economic competitiveness, while at the same time eliminating M&As, which impede such improvements. In addition, it is necessary to engage in further in-depth studies on cases of M&A market rules in developed countries like the US, Europe, etc. In the UK, Australia and New Zealand, the interests of shareholders are viewed as being of primary importance.
As a result, the amount of the governments' intervention in the M&A market is strictly limited. In contrast, though the US system at first glance seems to be open for M&A markets to form, if an M&A puts the strategic interests of the state in jeopardy, regulation is thoroughly exercised.Similarly, states exercise various degrees of regulation in M&As according to their respective situations. It follows that Korea should analyze and compare each of these advanced models and apply the one that is most appropriate to its conditions. Japan presents one such advanced model. Because of the intervention by administrative authorities, it is uncertain whether the guide-based model presented by Japan will be effective in fostering the formation of an M&A market in a consistent manner, and thus when we consider Korea's present condition, though its M&A standards are insignificant in comparison, we can make the evaluation that it has enough merit to be benchmarked in the short and middle-term. -
The TV Broadcasting Industry and Regulations in China
The business expansion of the Korean TV broadcasting industry represents a new engine of economic growth, as Korean soap operas and movies contribute to the 'Korean Wave' that is currently sweeping Asia and several Western countri..
Jina Yeo Date 2006.08.16
multilateral negotiations, trade policyDownloadContentN/ASummaryThe business expansion of the Korean TV broadcasting industry represents a new engine of economic growth, as Korean soap operas and movies contribute to the 'Korean Wave' that is currently sweeping Asia and several Western countries. This report deals with the current status of the Chinese TV broadcasting industry and its regulations on the TV market entry of foreign entities. This study will contribute to establishing the Chinese TV industry's market strategy and to preparing for the Korea-China Free trade agreement (FTA) negotiations. (The rest is omitted.)< -
Economic Development of Azerbaijan and Economic Cooperation between Korea and Azerbaijan
Azerbaijan is coming into the spotlight of world economy because of rapid economic growth, natural resource abundance and market-friendly investment environment. After President Noh's state visit to Azerbaijan in May 2006, Korea i..
Hyeon-Joon Shin Date 2006.08.16
economic development, economic cooperationDownloadContent생략SummaryAzerbaijan is coming into the spotlight of world economy because of rapid economic growth, natural resource abundance and market-friendly investment environment. After President Noh's state visit to Azerbaijan in May 2006, Korea is showing more interest in Azerbaijan economy. Azerbaijan is worth being Korea's new trade partner. Many specialists in Azerbaijani economy forecast that the rapid economic growth of Azerbaijan will continue in the future. (The rest is omitted.)< -
The Mongolian Economy and Directions for Economic Cooperation with Mongolia
The Mongolian economy, which began its transition to an open trade economy in the 1990s, has been in a period of stabilization since the 2000s. In particular, when excluding Eastern European countries such as the Czech Republic an..
Jae-Wan Cheong et al. Date 2006.08.14
economic cooperation, overseas direct investmentDownloadContentThe Mongolian Economy and Directions for Economic Cooperation with MongoliaSummaryThe Mongolian economy, which began its transition to an open trade economy in the 1990s, has been in a period of stabilization since the 2000s. In particular, when excluding Eastern European countries such as the Czech Republic and Hungary from consideration, the Mongolian economy is evaluated having most successfully achieved the transition of its economy, with the fastest reorganization speed. According to the IMF, Mongolia suffered a relatively short time of economic turbulence compared to other countries in transition .<
Since 2000, the successful post-transition Mongolian economy has experienced an increasing growth rate due to rich natural resources, the development of the private industry sector, foreign direct investment, and so forth. In 2004, Mongolia achieved an all-time high GDP growth rate of 10.7 percent, through the uniform development of all its industries and the sudden rise in international mineral prices. In addition, the Mongolian economy is characterized by a small population compared to its vast territory, the economically advantageous geographical position of being an inland country, and by being a resource-rich nation, a trade dependent economy, and a driftwood society.
Korea and Mongolia have rapidly developed cooperative relations in several fields such as culture and economy, facilitated by racial and cultural similarities, in spite of short period about 16 years. In particular, the Korean president's second visit to Mongolia helped to upgrade the two countries' relationship. Mongolia traditionally recognizes South Korea as 'Solronggoseu's country', and recognizes Korea as its main partner in Northeast Asian economic cooperation. Because of its geographical position and historical experiences, the Mongolian people generally take strict precautions when dealing Russia and China, whose political and economic systems have subjugated Mongolia in the past, and prefer Korea to Japan, because of geographical proximity and amity between the two countries. Mongolia looks to the South Korean experience as a model for its own economic development, and as such, the Mongolian government has established Korea as an important diplomacy target and is active in promoting relations with Korea. As a result, Korea is the first country with whom Mongolia established diplomatic relations after its transition to an open trade economy.
In addition, hallyu (the Korean Wave) continues to exist in Mongolia, and South Korea is considered a land of opportunity and hope to Mongolians (seen in their enthusiasm for studying Korean and the popularity of studying abroad in Korean universities). We can condense the directions of how best to extend economic cooperation between the two countriesextending Korea's ODA support, participating in Mongolia's rich mineral resources development, participating in the extension of the infrastructure-improvement business, and aid advances in agriculture and stock farming. More specific business prospects lie in cashmere, mining, energy, the Internet, communications, banking, and tourism. -
Does FDI Mode of Entry Matter for Economic Performance?: The Case of Korea
This paper attempted to empirically test the proposition that unlike the typical concern against M&A, there is little difference in firm performance by modes of FDI entry. (The rest is omitted.)
Seong-Bong Lee et al. Date 2006.08.14
business managementDownloadContentExecutive Summary
I. Introduction
II. Empirical Study
1. Classification of FDI by Mode of Entry and the Data Set
2. Performance Comparison by Mode of Entry
III. Case Studies
1. LG Phillips LCD
2. BASF Korea
IV. Implications and Limitations
References
SummaryThis paper attempted to empirically test the proposition that unlike the typical concern against M&A, there is little difference in firm performance by modes of FDI entry. (The rest is omitted.)<
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