Policy Analyses
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Policy Analyses
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Market Opening of the Chinese Service Industry and It's Implicaion for Foreign Enterprises
The Korea Institute for International Economic Policy hosted an international conference under the title of 'Market Opening of the Chinese Service Industry and its Implication for Foreign Enterprises.'This conference provided the ..
WL Park et al. Date 2002.10.30
Economic openingDownloadContentSummaryThe Korea Institute for International Economic Policy hosted an international conference under the title of 'Market Opening of the Chinese Service Industry and its Implication for Foreign Enterprises.'
This conference provided the two countries with valuable insights and perspectives. Moreover, it is China was given important implications for market opening and the management of regulations and foreign enterprises trying to access to the Chinese market. (The rest is omitted.) -
Diffusion Factors of Electronic Trade for Trade Facilitation in the APEC Region: A Case of Korean Small Business
In recent times, one of primary efforts of the APEC shits from trade liberalization to trade facilitation reflecting the failure of early voluntary sectoral liberalization(EVSL) among APEC economies. The failure of trade liberali..
Yongkyun Chung et al. Date 2002.10.30
Economic cooperation, Free tradeDownloadContentExecutive Summary
Ⅰ. Introduction
Ⅱ. Electronic Trade and Trade Facilitation in APEC region
Ⅲ. Technology Diffusion Factor Model
Ⅳ. Empirical Results
Ⅴ. Policy Implications
Ⅵ. Conclusion
ReferencesSummaryIn recent times, one of primary efforts of the APEC shits from trade liberalization to trade facilitation reflecting the failure of early voluntary sectoral liberalization(EVSL) among APEC economies. The failure of trade liberalization seems to originates from two innate obstacles in attaining trade liberalization among APEC economies. The first obstacle faced with APEC is great diversity of member economies in the perspective of stages of economic development, economic system and size of the income level. The second obstacle is related with the fact that there are no effective instruments to enforce member economies to implement trade liberalization among non-binding APEC economies. For those reasons, it is difficult to implement trade liberalization in the APEC region . (The rest is omitted.) -
An Overview of Currency Union: Theory and Practice
The Mexican and East Asian currency crises and their sequels in Russia, Brazil, Turkey and Argentina reminded us that an exchange rate regime lacking transparency and credibility could induce abrupt interruptions of short-term cap..
Sammo Kang et al. Date 2002.10.25
Monetary policyDownloadContentExecutive Summary
I. Introduction
II. The Benefits and Costs of Currency Union
1. The “Pluses”
1) Saving Transaction Costs
2) Eliminating Exchange Rate Variability and Risks
3) Enhancing Price Stability
2. The “Minuses”
1) Loss of Sovereignty, Independent Monetary Policy, and the Lender of Last Resort
2) Loss of Seigniorage
III. Optimum Currency Area: Theory and Evidence
1. Optimum Currency Area Criteria
2. The Endogeneity of the Optimum Currency Area Criteria
3. Is Europe an Optimum Currency Area?
4. Is East Asia an Optimum Currency Area?
IV. Various Options for Regional Exchange Rate Stability in East Asia
1. U.S. Dollar Standard
2. Yen Bloc
3. Currency Basket Peg System
V. Concluding Remarks
ReferencesSummaryThe Mexican and East Asian currency crises and their sequels in Russia, Brazil, Turkey and Argentina reminded us that an exchange rate regime lacking transparency and credibility could induce abrupt interruptions of short-term capital flows, subsequently leading to costly output loss, social dislocation, and frequently political turmoil. One widely shared view is that soft-peg exchange rate regimes are extremely vulnerable and inherently crisis-prone in a world of volatile capital movements. Consequently, a number of relatively fixed rate countries in East Asia were encouraged to adopt floating rate regimes for their own good as well as the broader good of the international community. An underlying notion of this argument is that a more flexible exchange rate regime leads to an awareness of risk exposures related to exchange rate fluctuations on the part of both investors and borrowers, while a pegged exchange rate regime offers an implicit guarantee to creditors that leads to moral hazard and financial vulnerability. (The rest is omitted.) -
Prospects for Financial and Monetary Cooperation in East Asia
The growing interdependence in the world through trade and financial integration has heightened the need to engage in international and regional economic cooperation. This was never demonstrated more clearly than during the Asian ..
Yunjong Wang Date 2002.10.25
Financial integrationDownloadContentExecutive Summary
I. Introduction
II. Rationale for Regional Financial Cooperation
III. Status of Regional Financial Cooperation
IV. Evaluation of Existing Regional Institutions
V. Monitoring and Early Warning Signals
VI. Leadership Issue and Key Players in the CMI
VII. Future Agenda for Deeper Cooperation
References
SummaryThe growing interdependence in the world through trade and financial integration has heightened the need to engage in international and regional economic cooperation. This was never demonstrated more clearly than during the Asian financial crisis of 1997. The reality is that financial instability is unlikely to remain within the national borders of the country of origin. (The rest is omitted.) -
Korea's Pacific Economic Cooperation Diplomacy: Direction and Strategy
Recently, the international economic order has faced some challenges. Multilateral agreements pursuing liberalization and multilateralism have been plunged into confusion due to regionalism and protectionism, threatening the inter..
Co-authors Date 2002.10.23
Economic cooperationDownloadContentSummaryRecently, the international economic order has faced some challenges. Multilateral agreements pursuing liberalization and multilateralism have been plunged into confusion due to regionalism and protectionism, threatening the international financial system. In addition, contrary to expectations, the Asia Pacific Economic Cooperation (APEC) has not produced substantial results. In addition, there have been some movements toward strengthening economic cooperation among Asian countries after financial crisis. Accordingly, Korea should re-identify its policy response for economic cooperation in accordance with global and international trends. -
Trade Policy of the Bush Administration
After 8 years of Clintons Democratic administration, a Republican administration took office in Washington, DC in 2001. The first question proposed in this study is whether partisan changes in the US administration affect US forei..
Moonsung Kang et al. Date 2002.10.20
Trade policyDownloadContentSummaryAfter 8 years of Clintons Democratic administration, a Republican administration took office in Washington, DC in 2001. The first question proposed in this study is whether partisan changes in the US administration affect US foreign trade policy. This paper finds that several policies have been implemented with bipartisan support despite a different political party taking office at the White House. Those policies are (1) strengthening the multilateral trade system, and (2) fair trade. However, the Democratic and Republican parties have different views on various other trade issues. For instance, the Democratic Party negatively evaluates the current globalization process, while the Republican Party has a partially positive view of WTO-based globalization. In addition, the Democratic Party is eager to link trade issues with a social agenda such as labor and environment, but the Grand Old Party opposes forming such linkages, arguing that doing so infringes on the basic philosophy of free trade. (The rest is omitted.) -
Culture and Trade in the APEC -Case of Film industry in Canada, Mexico and Korea-
The cultural industry in general and the film industry in particular have increasingly become a moot subject in the international community. So far, there has been no discussion on the issue of trade and investment liberalization ..
Byung-il Choi Date 2002.10.01
Trade policy, Industrial policyDownloadContentExecutive Summary
I. Introduction
II. International Rules on Trade in Culture
A. Rules from trade perspective
B. Cultural diversity: cultural perspective
III. Film industry policy and trade: Canada, Mexico and Korea
A. Canada
B. Mexico
C. Korea
IV. Screen quota and Trade Liberalization: Case of Korea
A. Screen quota and Korea-US Bilateral Investment Treaty Negotiations
B. Negotiations perspective
C. Stakeholders and their interests
V. Policy Implications to the APEC
ReferencesSummaryThe cultural industry in general and the film industry in particular have increasingly become a moot subject in the international community. So far, there has been no discussion on the issue of trade and investment liberalization of the cultural sector at the APEC. This situation casts an interesting contrast to the WTO where the negotiations on liberalizing the film industry nearly broke off the latest multilateral trade negotiations, the Uruguay Round. The ongoing WTO new round, referred to as the Doha Development Agenda negotiations, is expected to take up the thorny issue again. The WTO negotiations would present challenge to the APEC in the cultural industry. (The rest is omitted.) -
Update on Korean Economic Reforms and Issues in Korea's Future Econonmic Competitiveness
Korea has made extensive reforms after the financial crisis of 1997~1998, some of which had been documented in various books and papers. However, most of those books and papers were written at the height of the financial crisis, ..
Junsok Yang Date 2002.10.01
Economic reformDownloadContentExecutive Summary
I. Introduction
II. Recovery of the Korean Economy after the Financial Crisis
III. Issues in Korea's Long Term Competitiveness
IV. Conclusion
ReferencesSummaryKorea has made extensive reforms after the financial crisis of 1997~1998, some of which had been documented in various books and papers. However, most of those books and papers were written at the height of the financial crisis, and some of the latest details are missing from those books and papers. (The rest is omitted.) -
Korean Crisis and Recovery
Four years after the outbreak of the Asian economic crisis and three and one-half years after the beginning of the IMF program with Korea, the International Monetary Fund (IMF) and the Korea Institute for International Economic Po..
David T. Coe et al. Date 2002.09.30
Financial crisisDownloadContentContents
Foreword
Acknowledgments
Contributors and Participants
1. Introduction / David T. Coe and Kim, Se-Jik
2. From Crisis to Recovery in Korea: Strategy, Achievements, and Lessons / Ajai Chopra, Kenneth Kang, Meral Karasulu, Hong Liang, Henry Ma, and Anthony Richards
3. What Have We Learned from the Korean Economic Adjustment Program? / Cho, Yoon Je
Comments on Papers 2 and 3
Barry Eichengreen
Lee, Jang-Yung
4. New Evidence on High Interest Rate Policy During the Korean Crisis / Chung, Chae-Shick ; Kim, Se-Jik
5. Falling Profitability, Higher Borrowing Costs, and Chaebol Finances During the Korean Crisis / Anne O. Krueger ; Yoo, Jungho
Comments on Papers 4 and 5
Chung, Myung-Chang
Bijan B. Aghevli
6. Corporate Restructuring and Reform : Lessons from Korea / William P. Mako
7. The Role of Corporate Bond Markets in the Korean Financial Restructuring Process / Gyutaeg Oh and Changyong Rhee
Comments on Papers 6 and 7
Simon Johnson
Cho, Won-Dong
8. The Korean Labor Market : The Crisis and After / Kim, Dae Il
9. Corporate Governance and Corporate Debt in Asian Crisis Countries / Eric Friedman, Simon Johnson, and Todd Mitton
Comments on Papers 8 and 9
Jang, Hasung
Zia Qureshi
10. Economic Growth in East Asia Before and After the Financial Crisis / Robert J. Barro
11. Recovery and Sustainability in East Asia / Park, Yung Chul ; Lee, Jong-Wha
Comments on Papers 10 and 11
Charles Adams
Kim, Yong Jin
12. Restructuring Korean Banks' Short-Term Debts / Kim, Woochan ; Byeon, Yangho
13. Strengthening the International Financial Architecture : Open Issues, Asian Concerns / Barry Eichengreen
14. A Framework for Exchange Rate Policy in Korea / Michael Dooley; Rudi Dornbusch ; Park, Yung Chul
Comments on Papers 12,13, and 14
Anne O. Krueger
Kim, Jun Il
Conference Program
SummaryFour years after the outbreak of the Asian economic crisis and three and one-half years after the beginning of the IMF program with Korea, the International Monetary Fund (IMF) and the Korea Institute for International Economic Policy (KIEP) jointly sponsored a conference on the Korean crisis and recovery. The conference was held at the Shilla Hotel in Seoul on May 17-19, 2001.The objective of the conference was to distill lessons from the Korean economic crisis and recovery, and the policies adopted by the government with support from the international community. The timing of the conference, coming after the three-year Stand-By Arrangement with the IMF ended on December 2, 2000, and following two years of remarkable economic recovery from the crisis, seemed appropriate for such an assessment. The conference brought together Korean and non-Korean economists with Korean policymakers and IMF and World Bank staff, some of whom were involved in designing and implementing the Korean program. Holding the conference in Seoul, with broadly equal participation by Koreans and non-Koreans, was considered essential to ensure that Korean perspectives on the crisis were well represented. -
Korea's FTA Policy: Focusing on Bilateral FTAs with Chile and Japan
A free trade agreement (FTA) eliminates tariffs and alleviates non-tariff barriers (NTBs), stimulating trade for member nations while limiting imports from non-member nations at the same time. In an effort to avoid the negative ef..
Inkyo Cheong Date 2002.09.05
Trade policy, Free tradeDownloadContentExecutive Summary
I. Introduction
II. Background of Korea's FTA Policy
III. Current Progress of Korea's FTAs
1. Korea-Chile FTA
2. Korea-Japan FTA
3. FTAs with Other Nations
IV. A Korea-Chile FTA: Korea's First FTA?
V. Expected Effects of a Korea-Japan FTA
VI. Conclusion
ReferencesSummaryA free trade agreement (FTA) eliminates tariffs and alleviates non-tariff barriers (NTBs), stimulating trade for member nations while limiting imports from non-member nations at the same time. In an effort to avoid the negative effects of exclusion from such agreements, to maintain economic reform and an open policy, and to actively cope with proliferating regionalism, the Korean government has decided to pursue FTAs with other nations. Forming FTAs will enable Korea to create political allies, attract foreign investment, and establish overseas footholds, as well as allow Korean companies to secure foreign export markets and overcome discriminatory practices under other FTAs. (The rest is omitted.)