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Policy Analyses
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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.) -
The Success Story of Switzerland: How could Switzerland's specific political institutions contribute to the country's political stability and economic wealth?
Switzerland is known as one of the most prosperous and wealthiest countries in the world. Switzerland ranks 3rd in the list of income table in the world. Furthermore, it maintains stable political regime and high level of security..
Won-hwa Park et al. Date 2006.07.31
Economic developmentDownloadContentExecutive Summary
Ⅰ. Introduction and Overview
Ⅱ. Characteristic Institutional Features of the Swiss Political System
1. Federalism
2. The Representation System and its Specificities
3. Direct Democracy
4. Conclusion: A System of Concordance
Ⅲ. Political Stability and Innovation in the Swiss Political System
1. Elements of Stability
2. Reforms and Changes
Ⅳ. Implications on the Economic Development
1. Factors for the Economic Success
Ⅴ. Conclusion
ReferencesSummarySwitzerland is known as one of the most prosperous and wealthiest countries in the world. Switzerland ranks 3rd in the list of income table in the world. Furthermore, it maintains stable political regime and high level of security. This research tries to illuminate the way to the success of Switzerland through examining its political background and the specific features of the Swiss political system. (The rest is omitted.) -
Economic Changes in Mexico after NAFTA and Implication
Since NAFTA was implemented in 1994, Mexico's main macroeconomic indicators, such as the economic growth rate, trade and FDI inflow, employment, and competitiveness, have been experiencing positive growth. NAFTA was pointed out to..
Chang - Soo Lee et al. Date 2006.07.18
Economic reform, Free tradeDownloadContentSummarySince NAFTA was implemented in 1994, Mexico's main macroeconomic indicators, such as the economic growth rate, trade and FDI inflow, employment, and competitiveness, have been experiencing positive growth. NAFTA was pointed out to be a significant factor behind such positive changes. (The rest is omitted.) -
Investment Stagnation in East Asia and Policy Implications for Sustainable Growth
The overall assessment on the macroeconomic performance by Asian- Crisis countries is that the rebound of growth over the period of 1999-2000 has slowed down in the subsequent period of 2001-2003 mainly because of stagnant demand ..
Hak K. Pyo Date 2006.07.13
Financial crisisDownloadContentExecutive Summary
I. Introduction
II. Stagnant Investment and Productivity Divergence of East Asian Economies
1. Productivity Convergence and Divergence
2. Decline in Rates of Return and Threshold Externality of Human Capital
III. Theoretical Explanation for Stagnant Investment
1. A Two-Sector Growth Model with Structural Rigidity
2.Acceleration Model and Growth Model with Asymmetric Adjustment Cost
IV. An Empirical Study for East Asian Economies
1. Investment Model with Acceleration Principle
2. Estimation of q-theory Investment Function
V. An Empirical Study for Korea
1. Gross Output Growth Accounting by 33 Sector (1984-2002)
2. The Decomposition by IT and Non-IT sector
VI. Policy Implications
1. Implications for Sustainable East Asian Growth
2. Policy Implications for Korea
References
Appendix to Section III.1
Appendix to Section IV.1
Appendix Tables to Section V.1
Appendix Tables to Section V.2SummaryThe overall assessment on the macroeconomic performance by Asian- Crisis countries is that the rebound of growth over the period of 1999-2000 has slowed down in the subsequent period of 2001-2003 mainly because of stagnant demand for domestic investment across all crisis-inflicted economies. (The rest is omitted.) -
Regional Trade in Northeast Asia: Why Do Trade Costs Matter?
Trade costs are often cited as an important determinant of trade volume. This paper provides sufficient evidence to ascertain that today's trade issues in Northeast Asia go beyond the traditional mechanisms of tariffs, and include..
Prabir DE Date 2006.07.07
Trade structureDownloadContentExecutive Summary
Ⅰ. Introduction
Ⅱ. Definition of Trade Costs and Their Relevance
Ⅲ. Methodology and Data
1. Measuring Transaction Costs
2. Measuring Trade Infrastructures
3. The Augmented Gravity Model
4. The Data
Ⅳ. Overview of Regional Trade and Trade Costs in Northeast Asia
Ⅴ. Impact of Trade Costs on Regional Trade: Estimated Results
Ⅵ. Conclusions
References
Appendix 1
Appendix 2SummaryTrade costs are often cited as an important determinant of trade volume. This paper provides sufficient evidence to ascertain that today's trade issues in Northeast Asia go beyond the traditional mechanisms of tariffs, and include 'behind-the-border' issues. We find that variations in transaction costs along with trade mobility infrastructure facilities have significant influence on regional trade flows in Northeast Asia. This paper concludes that if tariffs were to become lower in Northeast Asia, the economies in that region could benefit substantially from higher trade, provided that trade facilitation measures were greatly strengthened. -
The Directions of Economic Cooperation between Korea and Emerging African Countries
Egypt, Algeria, and Nigeria, all visited by Korean president Roh in March2006, are politically and economically important countries in Africa. They all have relatively large populations and economies, and are richly endowed with e..
Bokyeong Park et al. Date 2006.05.12
Economic cooperation, Energy industryDownloadContent생략SummaryEgypt, Algeria, and Nigeria, all visited by Korean president Roh in March2006, are politically and economically important countries in Africa.
They all have relatively large populations and economies, and are richly endowed with energy resources. Therefore, there are various economic areas in which Korea can cooperate, the most feasible and mutually beneficial of which are identified in this report. The African countries' own economic features, such as market size, resource endowment, economic policy, and so forth are taken into account.
This report suggests that Korean overseas direct investment in Egypt would be an effective channel through which to enhance economic cooperation between Korea and Egypt. Egypt achieved noteworthy progress in its recent reforms to promote foreign investment. It established a Ministry of Investment, which will create the institutional framework and infrastructure required to attract foreign investment. It reduced the amount of red-tape involved with doing business, revised laws to make the labor market more flexible, and strengthened its intellectual property rights. Its location interlinking the Middle East, Africa, and Europe is a merit for foreign investors.
Algeria has a relatively large population and domestic market among African countries. It also has immense energy reserves, such as crude oil and natural gas. Korea, therefore, can strengthen economic ties with Algeria through export promotion and participation in energy development projects. The products for which Korea can rapidly increase its exports are automobiles, IT products, industrial machinery, steel, and iron. On the other hand, Algeria has kept open the domestic energy exploration market, and recently restructured its oil industry by lifting the regulatory rights of its national oil company. The restructuring is intended to accelerate the participation of foreign companies in the development of its energy resources. Korean oil companies and the government need to make an effort to seize these energy exploration opportunities in Algeria. Because of a long-lasting civil war, Algeria's infrastructure, such as electricity and transportation, remains destroyed or less developed. Therefore, linking energy exploration and infrastructure construction could be an effective strategy.
Nigeria also has a great amount of oil and gas, and allows foreign companies to participate in its exploration. Its recent policy on energy development is oriented toward inducing more foreign investor participation. However, there are a few risks associated with energy exploration by a foreign company in Nigeria. Most of the oil fields to be explored in Nigeria are offshore, which requires large-scale capital and advanced technology. In addition, the requirements of localization tend to be stricter, and there still remain political risks such as ethnic insurgencies and sudden policy changes. -