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Working Papers
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The Effect of International Capital Flows on Domestic Capital Formation and the Current Account
Joo-Sung Cheon Date 1996.10.16
Capital market -
An Economic Assessment of Anti-Dumping Rules: From the Perspective of Competition Laws and Policy
This paper is organized as follows : Section Ⅱ discusses the definition of dumping in economic and legal terms, and reviews certain types of dumping and their impacts. Section Ⅲ first examines some characteristics of existing an..
Wook Chae Date 1996.10.01
Anti-dumping systemDownloadContentⅠ. Introduction
Ⅱ. Dumping: Definition and Types
Ⅲ. Anti-Dumping Rules: Characteristics and History
Ⅳ. Economic Rationales for Anti-Dumping Rules
Ⅴ. Anti-Competitive Effects of Anti-Dumping Rules
Ⅵ. Reform of Anti-Dumping Rules
Ⅶ. Conclusion
Reference
SummaryThis paper is organized as follows : Section Ⅱ discusses the definition of dumping in economic and legal terms, and reviews certain types of dumping and their impacts. Section Ⅲ first examines some characteristics of existing anti-dumping rules in comparison with other trade measures such as general tariffs and safeguards, and then reviews the legislative background of GATT/WTO anti-dumping laws. In section Ⅳ, the rationales of current anti-dumping rules are evaluated from the perspectives of price discrimination, sales below cost and predation. Section Ⅴ analyzes some major anti-competitive factors in current anti-dumping rules. Section Ⅵ then suggests some guidelines for reform of current rules in the context of competition policy. Finally, section Ⅶ concludes the paper.
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The Promotion Plans for Derivative Markets and Risk Management
Around the globe, the derivative market has grown rapidly owing to the increase in price fluctuations in the financial market and the diversification of its function.As the liberalization of interest rates and the opening of the f..
In-Bae Kim Date 1996.09.20
Financial policyDownloadContentSummaryAround the globe, the derivative market has grown rapidly owing to the increase in price fluctuations in the financial market and the diversification of its function.
As the liberalization of interest rates and the opening of the financial market have progressed, Korea also needs to introduce hedge funds. At the same time, derivative products at foreign financial institutions have increased substantially.
This paper states that if financial institutions dealing in derivative products go into bankruptcy proceedings, the ensuing ripple effects would be immense.
The effects would be greater than those produced by the failure of traditional finance markets because there is a high connection between foreign and domestic finance markets due to developments in information and communication technology and the large scale of their transactions.
This paper suggests that the Korea government should encourage the derivative market to revitalize the economy market through legal and institutional devices rather than imposing restrictions. -
The Cost of Trade Protection
The study examines the effect of Korean trade barriers on highly protective products in 1992. Although trade protection was high in 1992, the ratio of trade protection from 1970 to 1992 was markedly low owing to continuous reducti..
Nam-Doo Kim Date 1996.08.31
Free tradeDownloadContentSummaryThe study examines the effect of Korean trade barriers on highly protective products in 1992. Although trade protection was high in 1992, the ratio of trade protection from 1970 to 1992 was markedly low owing to continuous reductions of tariff rates and the deregulation of quantity restrictions.
According to estimates, consumer satisfaction and economical efficiency appear to be low and the consumer profit of 1992 was in a deficit of $9.2-10.4 billion, some 3.8 percent-4.3 percent of gross national product for the same year. On average, $210,000-$239,000 of additional charges were paid per head.
These analyses reveal that while the Korean government protected domestic products from foreign competitors, domestic consumers purchased low-priced products at a high price and consumer profit was transferred to domestic manufacturers and the government. The trade protection measures therefore cause the Korean economy to show a deficit.
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CGE Analysis of WTO Trade Liberalization
The WTO was founded by an agreement made at the eighth multilateral GATT negotiations. Established in 1947, GATT played a leading role in the international economy, contributing to trade liberalization through several multilateral..
Inkyo Cheong et al. Date 1996.08.31
Free tradeDownloadContentSummaryThe WTO was founded by an agreement made at the eighth multilateral GATT negotiations. Established in 1947, GATT played a leading role in the international economy, contributing to trade liberalization through several multilateral negotiations on tariff reductions and the removal of non-tariff barriers in response to changes in the world trade environment.
GATT, however, had few binding forces and was a restricted trade agreement as actual agreements were settled in a multilateral format that was only inclusive of a few GATT member nations.
Since the 1980s, advanced countries abused means of protecting trade such as antidumping measures and voluntary export restrictions in the name of protecting international balance of payments. In addition, GATT did not address the ever-increasing role of service and intellectual property in international trade.
Consequently, many experts think that the GATT system was not able to regulate the international economy effectively.
As with GATT, WTO is expected to convert the international trade system into a free competition system based on comparative advantages. Having legal binding force to some extent, this organization will require member nations to change their policy structurally. -
The Financial Crisis Cases and the Political Implications of Finance Liberalization
This paper gives two analyses of what policy objectives the Korean government should hold to liberalize the financial sector successfully.First, finance liberalization would increase the effectiveness of the economy and promote lo..
Sang-Young Joo Date 1996.08.14
Financial crisis, Financial liberalizationDownloadContentSummaryThis paper gives two analyses of what policy objectives the Korean government should hold to liberalize the financial sector successfully.
First, finance liberalization would increase the effectiveness of the economy and promote long-term growth. However, without appropriate policy objectives, finance reform could go wrong, and in the worst case, Korea could see a financial crisis.
Second, at the beginning of finance liberalization, in particular in the period of centralizing the inflow of capital, it is difficult to control all of the main macroeconomic variables such as growth, prices, balance of current accounts and exchange rates.
Accordingly, this paper maintains that the Korean government should identify possible side effects of financial reform and prioritize its policy responses. -
The 1996 OECD Report on the Korean Economy
This report is the OECD's periodic survey of the Korean economy. Chapter I examines recent economic trends and prospects. Chapter II looks at the issue of financial opening and its policy implications. Chapter III reviews Korea's ..
Co-authors Date 1996.08.14
Economic reformDownloadContentSummaryThis report is the OECD's periodic survey of the Korean economy. Chapter I examines recent economic trends and prospects. Chapter II looks at the issue of financial opening and its policy implications. Chapter III reviews Korea's public finances. Structural reform is the subject of Chapter IV, which specifically looks at labor market policy, industrial policy, competition policy and trade policy. Conclusions are presented in Chapter V. -
The Emerging WTO and New Trade Issues : Korea's Role and Priorities
The aim of the World Trade Organization (WTO) is to clear the way for a new international economic order, one of freer and fairer trade in the global economy. In this sense, it is hoped that the WTO will lead us out of the protect..
Chan Hyun Sohn Date 1996.08.01
Trade policy, Free tradeDownloadContentⅠ. Introduction
Ⅱ. The Nature of the WTO System
Market Openings and the Strengthening of the Multilateral System
Toward Freer and Fairer Trade
Korea's Role in the WTO
Ⅲ. The Performance and Future Direction of the WTO
Assessment of the WTO's First 20 Months Performance
Singapore Ministerial and the Future Direction of the WTO
Korea's Priorities in Future Agenda of the WTO
Ⅳ. New Trade Issues
Trade and Environment
Trade and Investment
Trade and Competition Policy
Trade and Labor Standards
Trade and Corruption
Regionalism
Korea's Position on the New Trade Issues
Ⅴ. Conclusion
ReferencesSummaryThe aim of the World Trade Organization (WTO) is to clear the way for a new international economic order, one of freer and fairer trade in the global economy. In this sense, it is hoped that the WTO will lead us out of the protectionism and managed trade of 1980s and into a free trade regime of the 1960s and 1970s. Since its inception less than two years ago, the WTO has already made considerable accomplishments and has shown its potential in playing a central role in the multilateral trading system.
Although WTO efforts have thus far concentrated on the full and efficient implementation of UR commitments, the WTO will soon be looking ahead in other directions. Namely, it will focus on maintaining the momentum of trade liberalization among countries and on keeping up to date with the ever-changing integration processes of the world economy. In fact, the first WTO Ministerial Conference will be held in Singapore on December 9th-13th to review the work and progress of the WTO's UR implementation efforts over the last two years and analyze the outstanding service negotiation results. Furthermore, the so-called new trade issues such as the environment, investment, competition policy, labor standards, and bribery and corruption will also be examined. Lastly, the topic of regionalism as a threat to the WTO system will be under heavy discussion at the Conference.
This paper examines the role and priorities of Korea in the WTO system. To this end, in Section Ⅱ, we start by elaborating on the characteristics of the WTO system and then discussing Korea's role within that system. Based upon these observations, Section Ⅲ assesses the WTO's first twenty months of activity and the WTO's future direction, and consequently, looks at how Korea's priorities fit in line with these directions. Section Ⅳ explores new trade issues facing the WTO and Korea, and the last section offers a brief conclusion and some comments.
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Korean Oversea's Direct Investment: Trends and Implications
Si-Joong Kim Date 1996.06.29
Overseas direct investment