Policy Analyses
PUBLISH
Policy Analyses
-
An Assessment of Japan's Import Promotion Polices
Japan has been experiencing a rise in imports recently and the trend is likely to continue unless there are change in Japan's current internal and external conditions. Internal factors include a high yen, the prolonged sluggishnes..
Eun-Ji Kim Date 2002.12.30
Trade policyDownloadContentSummaryJapan has been experiencing a rise in imports recently and the trend is likely to continue unless there are change in Japan's current internal and external conditions. Internal factors include a high yen, the prolonged sluggishness of the economy and deepening competition among domestic corporations. The following are among the external factors: cheaper imports, which are preferred by Japanese consumers in light of the extended recession; reverse imports stemming from th foreign direct investment of Japanese corporations and intensifying price wars among manufactures manufacturers. In addition to such growing demand for imports, Japanese corporations increasingly forming interdependent relations with countries in East Asia. Considering these points, Japan's economic recession provides East Asian countries with the opportunity to make inroads into Japan. (The rest is omitted.) -
Patterns of Japanese Direct Investment Abroad in 1990s
Japan´s economy has been in recession from the early half of 1990s. This depressed situation of Japanese economy had adverse effects on Japanese overseas direct investment. For example Japanese overseas direct investment increase..
Hoon Chung Date 2002.12.30
Overseas direct investmentDownloadContentSummaryJapan´s economy has been in recession from the early half of 1990s. This depressed situation of Japanese economy had adverse effects on Japanese overseas direct investment. For example Japanese overseas direct investment increased rapidly in the last half of 1980s, but it decreased significantly during 1990s. (The rest is omitted.) -
Cuban Lessons for North Korean Economic Reform
Cuban Lessons for North Korean Economic ReformKim Yeonchul(Korea University, Asiatic Research center, research Professor)The North Korean new economic strategies that began in July 2002 showed the limits of partial measures. The d..
Yeonchul Kim Date 2002.12.30
Environmental policyDownloadContentSummaryCuban Lessons for North Korean Economic ReformKim Yeonchul(Korea University, Asiatic Research center, research Professor)
The North Korean new economic strategies that began in July 2002 showed the limits of partial measures. The direction of change is marketization, but such changes are selective and limited, and still fall short of reform and opening in the fundamental sense of modifying the economic mechanism or expanding private ownership.What is the economic reform model for North Korean to hint? The initial conditions in North Korea and China are different. First, economic reform requires the top echelon's commitment to change, along with a principal force among the ruling elites that can drive reform. North Korea is challenged to carry out policy changes while maintaining existing leadership and political ideology.Second, before undertaking economic reform China had growth potential, i.e., the farming population in its non-government sector as well as a highly decentralized economy. However, North Korea has an Eastern European-style industrial structure.Third, in the late 1970s, China was able to leverage its attractive domestic market to induce the capital it needed, while participating in the international market economy by stimulating its export industry. North Korea faces a different global environment. (The rest is omitted.) -
Regional Investment Environment: ChangJiang Delta
Investment Conditions in the Changjiang Delta Dong Yoon Oh and Hong Soo Lim Foreign direct investment (FDI) should be viewed as a continuing process that consists of two stages: initial entry and continuing expansion. The differ..
Dong Yoon Oh et al. Date 2002.12.30
Overseas direct investmentDownloadContentSummaryInvestment Conditions in the Changjiang Delta Dong Yoon Oh and Hong Soo Lim
Foreign direct investment (FDI) should be viewed as a continuing process that consists of two stages: initial entry and continuing expansion. The difference in objectives and determinants between these two stages incurs distinctive spatial behavior in the investors. Once the decision to invest has been made, the initial search for the location of initial entry is limited and mainly based on the macroeconomic factors of the host country. In evaluating locations for the investment, the emphasis is placed on the potential to realize the overall strategies of investors to gather information about a higher level of region. As investors become more familiar with the economic environment of host countries, the locational options for continuing expansion or allocation increase. The perception and evaluation of location choices become more sensitive to various factors such as resources, markets, institutions and production. The location search then focuses on a lower spatial and micro-framework. Market considerations may grow more important. (The rest is omitted.) -
Debt Resolution, Cross-Border M&As, Governance and Control in Korea's Post-Crisis Corporate Restructuring
The outbreak of financial crisis in Korea in 1997 exposed the chronic structural weaknesses in the country's economy. Heated debates have failed to generate definitive answers on just what caused the financial crisis. (The rest is..
Chan-Hyun Sohn Date 2002.12.30
Business managementDownloadContentSummaryThe outbreak of financial crisis in Korea in 1997 exposed the chronic structural weaknesses in the country's economy. Heated debates have failed to generate definitive answers on just what caused the financial crisis. (The rest is omitted.) -
How FTAs Affect Income Levels of Member Countries: Converge or Diverge?
The purpose of this paper is to analyze whether the formation of an FTA will converge or diverge the economic levels of its member countries. Although similar previous studies predicted, to a certain degree, the possibility of eco..
Chan-Hyun Sohn Date 2002.12.30
Multilateral negotiations, Free tradeDownloadContentSummaryThe purpose of this paper is to analyze whether the formation of an FTA will converge or diverge the economic levels of its member countries. Although similar previous studies predicted, to a certain degree, the possibility of economic convergence among FTA members, they failed to provide reliable research methods or concrete conclusions. By introducing the concept of 'accelerating convergence', this study tries to estimate economic convergence to analyze the pure effects of an FTA on the economic level convergence among its members. The model of economic growth developed by Barro and Sala-i-Martin (1995) is extended for this purpose, and by employing the panel data analysis of major FTAs including EU, NAFTA, Mercosur and AFTA, the seemingly unrelated regression (SUR) method provides considerable evidence on accelerated convergence. -
Korea's Strategy for Becoming a Northeast Asian Business Hub: Based on Case Studies of Major Business Hubs
Korea's Strategy for Becoming a Northeast Asian Business Hub- Based on Case Studies of Major Business Hubs -Chang Jae LeeIn Northeast Asia, functional regional economic integration has been progressing, driven by market forces des..
Chang Jae Lee Date 2002.12.30
Economic opening, Economic cooperationDownloadContentSummaryKorea's Strategy for Becoming a Northeast Asian Business Hub- Based on Case Studies of Major Business Hubs -
Chang Jae Lee
In Northeast Asia, functional regional economic integration has been progressing, driven by market forces despite the absence of formal regional economic integration. China's recent accession to the WTO is expected to further accelerate the formation of the 'Northeast Asian Business Area.' As the rise of the Chinese economy can bring both threats and opportunities for Korea, it is up to Koreans to turn threat into opportunity. Although Koreans feel the need for a paradigm shift, there is still no consensus on the future direction of the Korean economy.Faced with these challenges, Korea's strategy for becoming a regional business hub stems from the idea that Korea should take advantage of its geographic location between two economic giants, China and Japan. (The rest is omitted.) -
An Assessment of Trade and Development Issues in the Doha Round
An Assessment of Trade and Development Issues in the Doha RoundSang-yirl Nam and Yul KwonThis report reviews the multilateral issues and discussions in the trade and development area of the Doha Round and offers suggestions on wha..
Sang-yirl Nam et al. Date 2002.12.30
Multilateral negotiationsDownloadContentSummaryAn Assessment of Trade and Development Issues in the Doha RoundSang-yirl Nam and Yul Kwon
This report reviews the multilateral issues and discussions in the trade and development area of the Doha Round and offers suggestions on what position the Korean government should take. Since the discussions in the Doha Round have concentrated on the Special and Differential Treatment (SDT) provisions in the various WTO agreements and decisions, we focused on issues related to the SDT provisions in terms of trade and development. A wide gap between developed and developing countries can be observed in the discussions of the Doha Round. Developing countries, especially least developed countries, have made various proposals aimed at strengthening and clarifying the SDT provisions, as well as making them more efficient and operational-. In contrast, developed countries have emphasized the overall balance between rights and obligations in the multilateral trade system, and the need for developing countries to take an active role. However, while stressing the importance of establishing comprehensive and common rules on SDT provisions, they neglect to respond to the concrete proposals of developing countries on each SDT provision. Korea's position will be closer to that of the developed countries, in that the overall balance between rights and obligations in the multilateral trade system will be emphasized. However, Korea must maintain its position as a developing country on several sensitive and important issues, especially on topics such as the agricultural and environmental sectors. For that purpose Korea will have to persuade member countries by preparing and offering objective materials explaining its situation in those areas. Besides, Korea can contribute to the Doha negotiation process by submitting proposals on, for example, substantial enlargement of the products subject to preferential treatment for the least developed countries, the general purpose and principles applied to the SDT provisions, and on the development of further discussions in these areas. In addition, it will be important to enhance Korea's role in economic cooperation with developing countries, especially in terms of Official Development Assistance (ODA). It is time to establish a basic framework for development assistance so that the complementary basis of economic cooperation with those countries can be enlarged. For that purpose it is important for Korea to increase its ODA contributions and to make an effort to join the Development Assistance Committee (DAC) of the OECD.
By the end of 2002, the Committee on Trade and Development failed to reach a conclusion in its discussions on the SDT provisions. The discussions will have to be continued over 2003, and it is hoped some results on the objectives, function, and structure of the monitoring mechanism on SDT provisions can be achieved by the fifth ministerial meeting in Cancun, Mexico in September. For the specific issues of the agreement, a realistic target may be to establish comprehensive and common rules applicable to the various SDT provisions, to classify them by their characteristics, and to determine the order of priorities before the fifth ministerial. Based on the results, practical progress can be achieved after the ministerial meeting by cooperating with other committees and subsidiary bodies of the WTO. -
Korean FDI into China: a regional approach
China can be divided 8 regions as to current level of their economic development. They are North-East, Northern Coast, Eastern Coast, Southern Coast, Middle Yangz, Middle Yellow river, South-West, North-West. According to our a..
Mansoo Jee Date 2002.12.30
Business management, Overseas direct investmentDownloadContentSummaryChina can be divided 8 regions as to current level of their economic development. They are North-East, Northern Coast, Eastern Coast, Southern Coast, Middle Yangz, Middle Yellow river, South-West, North-West. According to our analysis on the investment environments of 8 regions, Eastern Coast region has best conditions for foreign investors in many aspects while Southern Coast has most opened economy. Northern Coast region where most of Korean FDI has been invested has a big market scale and strong commercial infrastructures including wholesales and retails. Among other regions, Middle Yangze region has relatively good environments in market potential, production cost, and infrastructure. This region should become a new center of labor intensive industry in the future. But rest of regions hardly can provide promising grounds for foreign investments. (The rest is omitted.) -
An Analysis of the Trade Structure of Major Countries in the Middle East and Implications for Korea's Middle East Trade Policy
After the 9.11 terror attack, the Middle East, once again, became the center of world attention. It cannot be emphasized enough that peace in the Middle East would have a great impact on the world economy, as the Middle East has p..
Heungchong Kim Date 2002.12.30
Trade structure, Trade policyDownloadContentSummaryAfter the 9.11 terror attack, the Middle East, once again, became the center of world attention. It cannot be emphasized enough that peace in the Middle East would have a great impact on the world economy, as the Middle East has played the role of supplying the world with oil and natural gas. Considering the possibility of terrorism by Islamic extremists, people have come to recognize that maintaining peace in the Middle East is deeply related to worldwide peace. (The rest is omitted.)