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Policy Analyses
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Policy Direction for Mutual Recognition of Medical Professionals: Comparing Licensure System of Korea and the United States
Jeong Gon Kim Date 2006.12.29
Economic integration, Free trade -
Conditions for the Successful Establishment of East Asian Economic Integration: An Institutional Approach
1. Economic Integration in East Asia and 'Institutionalization' The subject of this research is to find out the methods of how to promote market integration in East Asia considering the experiences of the European Union. In its 56..
Cae-One Kim et al. Date 2006.12.29
Economic integration, Trade policyDownloadContentSummary1. Economic Integration in East Asia and 'Institutionalization'
The subject of this research is to find out the methods of how to promote market integration in East Asia considering the experiences of the European Union. In its 56 year old history from the Schuman Declaration in May of 1950, the EU has been the most successful, and in a sense the only successful example of regional economic integration. (The rest is omitted.) -
Global Imbalances and the US Debt Problem: Should Developing Countries Support the US Dollar?
The contributing authors to this book have provided highly interesting analyses and policy recommendations. Their analyses are geared toward both the functioning of the world economic system as well as at the question of what indi..
Jan Joost Teunissen et al. Date 2006.12.26
Economic cooperation, Monetary policyDownloadContentAcknowledgements
Notes on the Contributors
Abbreviations
1. Should Developing Countries Support the US Dollar?
By Way of Introduction
2. Global Imbalances and Emerging Markets
Barry Eichengreen and Yung Chul Park
3 Global Imbalances and Latin America: A Comment on Eichengreen and Park
Barbara Stallings
4 The Dilemmas and Dangers of the Build-Up of US Debt: Proposals for Policy
Responses
Jane D'Arista and Stephany Griffith-Jones
5 Currency Asymmetry, Global Imbalances, and Rethinking of the International
Currency System
Fan Gang
6 China's Macroeconomic Imbalances: The Liquidity Tango Mechanism
Wing Thye Woo
7 How Effective Is Monetary Policy in China? A Comment on Woo's "Inflationary
Tango"
Zdenk Drábek
8 Asian Monetary Coordination and Global Imbalances
Yonghyup Oh
9 Understanding Imbalances in a Globalised International Economic System
Jan A. Kregel
10 Policy Recommendations for the US, Europe and Asia: By way of Epilogue
Jan Joost Teunissen
SummaryThe contributing authors to this book have provided highly interesting analyses and policy recommendations. Their analyses are geared toward both the functioning of the world economic system as well as at the question of what individual countries and regions can do to resolve the US deficit and global imbalances problems. Several authors have reminded us of the need of more in-depth analysis of the causes of global imbalances. -
Cooperation among APEC Member Economies:An Interdisciplinary Approach of Economic and Cultural Perspectives
APEC Member Economies have devoted themselves to achieving sustainable economic development in the region by reconciling heterogeneity in economic and cultural aspects. However, comprehensive studies encompassing both economic and..
Hwy-Chang Moon et al. Date 2006.11.30
Economic cooperationDownloadContentExecutive Summary
I. Introduction
II. Previous Studies on APEC Member Economies
III. The Competitiveness Model
The Economic Model
The Cultural Model
IV. Data and Methodology
Data
Methodology
V. Results
Overall Competitiveness
Country Groups
Competition and Cooperation
VI. Discussion
Inter-group Cooperation
Intra-group Cooperation
VII. Policy Suggestions
VIII. Conclusion
ReferencesSummaryAPEC Member Economies have devoted themselves to achieving sustainable economic development in the region by reconciling heterogeneity in economic and cultural aspects. However, comprehensive studies encompassing both economic and cultural perspectives that suggest a way of mutually beneficial development are difficult to find. For a more accurate analysis on cooperation among APEC Member Economies, we, therefore, need a more comprehensive framework that deals important variables in various areas, including the cultural factors.
For this purpose, this article studies the relationship and cooperation among APEC Member Economies through the following three stages. In the first stage, national competitiveness of Member Economies will be measured with a comprehensive model developed through exhaustive literature reviews on national competitiveness in both economic and cultural perspectives. In the second stage, the national competitiveness structures of Member Economies are analyzed by classifying them into four country groups depending on their national competitiveness structures. In the final stage, a mutually beneficial way of cooperation among Member Economies will be suggested with an in-depth consideration of the characteristics of each country group.
The results of the empirical analyses over the relationship among the 19 Member Economies in the economic and cultural perspectives suggest the way of both inter-group cooperation and intra-group cooperation, based on the complementarity of the national competitiveness structure and the complexity of factors comprising national competitiveness. Inter-group cooperation, which is based on the complementarity of the national competitiveness structure, refers to a cooperative relationship among economies in different country groups. Economies have competitive relationships with economies in the same country group, while the portion of upstream and downstream cooperation increases when compared with economies in other country groups. Therefore, Member Economies can enjoy cooperative relationships with economies outside their own country groups.
On the other hands, intra-group cooperation, which lays it basis on the complexity of the factors comprising national competitiveness, means the cooperative relationship among the economies within the same country group. Although competition prevails in the majority of the factors among the economies in the same country group, there is room for cooperation among the other factors that are not in a competitive relationship. This is because countries can also benefit from similarities. Together with the similarity in many factors, the dissimilarity in other factors enables countries to reap further competitiveness.
Cooperation among APEC Member Economies, therefore, can be fostered with the integration of inter-group cooperation and intra-group cooperation with consideration of both economic and cultural factors comprising national competitiveness. The complementarity of the national competitiveness structure and the complexity of factors comprising national competitiveness should be two corner stones for the establishment and implementation of effective policies with which all APEC Member Economies can enjoy the benefits of cooperation. When considering a way to spur cooperation among Member Economies, we can draw several implications from this study. Firstly, macro level policies to enhance the cooperation among the country groups analyzed in this paper should appropriately be derived with a full consideration of the unique characteristics of the economies in each group. Secondly, micro level policies to increase the cooperation among Member Economies within the same country group should be more carefully considered by taking into account both the similarity and dissimilarity of the sub-variables of competitiveness. Thirdly, each Member Economy should take an appropriate strategic position between macro and micro policies in accordance with its unique status of competitiveness structure. Lastly, in the process of establishing and implementing policies, balanced attention must be paid to the factors comprising national competitiveness from both economic and cultural perspectives.
Based on these implications, more detailed suggestions can be derived as follows. Firstly, the results of this study can be employed as a rationale for the feasibility of cooperation among APEC Member Economies and the raison d'être of APEC. Secondly, governments should implement more active and favorable policies to enhance both inbound and outbound FDI. Thirdly, each Member Economy should establish its unique strategy to enhance national competitiveness through cooperation with other Member Economies. Lastly, some Korea-specific implications can also be derived. -
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.