RESEARCH
Working Papers
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A China-Japan-Korea FTA: Current Progress and Tasks
A trilateral FTA between China, Japan and Korea(CJK) was raised as a possibility after the Asian financial crisis. In November 1999, the three countries made an official attempt to discuss stronger economic cooperation in Northeas..
Inkyo Cheong et al. Date 2003.12.27
Free TradeDownloadContentSummaryA trilateral FTA between China, Japan and Korea(CJK) was raised as a possibility after the Asian financial crisis. In November 1999, the three countries made an official attempt to discuss stronger economic cooperation in Northeast Asia during a trilateral summit meeting in Manila. Two years later (in November 2001), many issues were raised at the trilateral summit meeting in Brunei, including the commencement of foreign affairs and finance ministerial meetings among the three countries, a business forum, the development of cultural exchange and human resources, and the enforcement of an IT cooperation system. Through this process, the three countries finally were able to take their first steps toward trilateral economic cooperation and integrationOne year later, then Chinese Premier Zhu Rongji proposed the study of a trilateral FTA during the summit meeting in Phnom Penh, November 2002. Since then, the Trilateral Joint Research Project has been undertaken by the Development Research Center of the State Council(DRC) in China, the National Institute for Research Advancement in Japan(NIRA) and the Korea Institute for International Economic Policy(KIEP). The research has been carried out on a step-by-step basis, beginning with the 'Economic Effects of a Possible Free Trade Agreement among China, Japan and Korea' as the research theme for 2003. The policy recommendations have been developed jointly based on analysis and intensive discussion. The research results were reported at the trilateral meeting in Bali, October 2003, and a sectoral impact and policy study for a CJK FTA will be undertaken in 2004. (The rest is omitted.) -
Change in Japan's Trade Policy and Implications for Korea
'From multilateral to bilateral' is one of the important trends at present in the world trade environment. Since the late 1990s, Japan has supported a FTA-based trade policy for both a WTO-based multilateral trade system and an ac..
HongBae Lee et al. Date 2003.12.27
Trade Policy, Free TradeDownloadContentSummary'From multilateral to bilateral' is one of the important trends at present in the world trade environment. Since the late 1990s, Japan has supported a FTA-based trade policy for both a WTO-based multilateral trade system and an active participation in promoting regionalism in relation to bilateral free trade agreements. This policy shift began in earnest with the Japan-Singapore FTA in 2002. (The rest is omitted.) -
The Issues and Strategies for Financial Service Sector in FTA among Korea, China, and Japan
The goal of this research is to provide general position of Korea in financial service sector for FTA among Korea, China and Japan, and also to suggest policy measures to raise international competitive power of domestic financial..
Doo Yong Yang et al. Date 2003.12.27
Financial Liberalization, Free TradeDownloadContentSummaryThe goal of this research is to provide general position of Korea in financial service sector for FTA among Korea, China and Japan, and also to suggest policy measures to raise international competitive power of domestic financial institutions for development of financial industry henceforth. In order to decide the contents and direction of FTA negotiation in financial service sector, research not only about the current situation and characteristics of financial service in three countries but also about institutional restrictions on foreign financial companies and current circumstances of each country should be preceded. (The rest is omitted.) -
Exchange Rate Misalignment in East Asia: Three Different Approaches
According to traditional economic theory, exchange rate over-valuation and associated currency speculation are considered one of the leading causes of the currency crisis. Even though the over-valuation was not the single source o..
Sammo Kang et al. Date 2003.12.27
Exchange RateDownloadContentSummaryAccording to traditional economic theory, exchange rate over-valuation and associated currency speculation are considered one of the leading causes of the currency crisis. Even though the over-valuation was not the single source of the crisis, recent experiences in Latin America and Asia has revived the issue of equilibrium currency valuation. (The rest is omitted.) -
The Role of Exchange Rate Arrangements in Regional Trade Agreements: Implications for a China-Japan-Korea Free Trade Agreement
The global trading system has seen a sharp increase in regional trade arrangements (RTAs) over the past decade or so, with a total of 259 RTAs notified to the GATT/WTO by the end of December 2002. An additional 70 RTAs that have n..
Kwanho Shin et al. Date 2003.12.27
Free Trade, Exchange RateDownloadContentSummaryThe global trading system has seen a sharp increase in regional trade arrangements (RTAs) over the past decade or so, with a total of 259 RTAs notified to the GATT/WTO by the end of December 2002. An additional 70 RTAs that have not yet been notified to GATT/WTO are estimated to be operational and another 70 are under negotiation. (The rest is omitted.) -
Development of the High-Tech Industry in China and Korea's Response
This study is purposed to analyze the development process, major growth factors, medium-and long-term development directions, and competitiveness of the high-tech industry in China and to propose proper strategies and policies of ..
Yoo Soo Hong et al. Date 2003.12.27
Economic Reform, Economic DevelopmentDownloadContentSummaryThis study is purposed to analyze the development process, major growth factors, medium-and long-term development directions, and competitiveness of the high-tech industry in China and to propose proper strategies and policies of Korean firms and government in response to the challenges of the high-tech industrial development of China. (The rest is omitted.) -
Economic Effects of the Liberalization of Distribution Services in Korea and Adjustment Policies
The Ministerial Declaration of the 4th WTO Ministerial Meeting at Doha in November 2001 announced the launch of the Doha Development Agenda(DDA) to be completed by January 1st, 2005. It is inevitable that the Korean market will ex..
June-Dong Kim et al. Date 2003.12.27
Economic OpeningDownloadContentSummaryThe Ministerial Declaration of the 4th WTO Ministerial Meeting at Doha in November 2001 announced the launch of the Doha Development Agenda(DDA) to be completed by January 1st, 2005. It is inevitable that the Korean market will experience another wave of liberalization after the conclusion of DDA negotiations. To prepare for the liberalization, it is helpful to draw some lessons from the recently liberalized sector, namely, distribution services.This study seeks to analyze economic effects of liberalization of distribution services market in Korea. At the same time, we try to recommend a desirable direction of the adjustment policies by conducting a survey on small and medium-sized retailers. (The rest is omitted.) -
Financial Openness and Financial Development: Implications for the International Finance Center
The successful environment of international finance center(IFC) is closely linked to the advances in financial openness. Beyond just functioning as facilitating international financial transactions, the IFC will be sustainable und..
Sangyong Joo Date 2003.12.27
Financial LiberalizationDownloadContentSummaryThe successful environment of international finance center(IFC) is closely linked to the advances in financial openness. Beyond just functioning as facilitating international financial transactions, the IFC will be sustainable under more opened financial system. On the other hand, the IFC as well as financial opening is expected to raise further the degree of financial development(FD). In this study, the effects of financial opening and the existence of IFC on the financial development are examined.In empirical work, cross-country sample of 106 countries are used and 11 of them are identified as IFC nations. The measure of financial openness are based on the IMF's annual Report on Exchange Arrangements and Exchange Restrictions(AREAER). For the degree of financial development, five quantitative indicators are used: liquid liabilities, claims of deposit money banks on non-financial domestic sectors, claims on private sector by deposit money banks and other financial institutions, stock market capitalization, total value traded on the stock market. All these FD indicators are measured as share of GDP. (The rest is omitted.) -
Prospects for North Korea's Economic Reform: A Study on the July 1st Economic Adjustment and Its Performance
North Korea introduced new economic adjustment measures in July 1, 2002 to resolve its current economic crisis, including five new important principles. Specifically, the economic adjustment deals with changes to the wage system, ..
Date 2003.12.27
North Korean EconomyDownloadContentSummaryNorth Korea introduced new economic adjustment measures in July 1, 2002 to resolve its current economic crisis, including five new important principles. Specifically, the economic adjustment deals with changes to the wage system, the partial adjustment of the state distribution system, the readjustment of the exchange rate to a realistic level, the partial liberalization of a private enterprise's decision-making role and the incorporation of the incentive policy to encourage productivity. North Korea's recent economic adjustment movement is being promoted by the government in a completely different atmosphere than what was observed in the past. The adjustment is now being implemented in an environment where the role of centralized planning has been significantly reduced. The policy changes are created to focus more inwardly on reform than solving its economic difficulties outwardly through opening the economy to foreign trade and investments. In addition, it is noticeable that North Korea is initiating these economic policy changes during a time where the world's political and economic scenes are going through some major changes. (The rest is omitted.) -
The Recent North Korea's Economic Reform and the Role of South-North Korea and International Society
Myung-Chul Cho et al.On July 1, 2002, North Korea launched a number of comprehensive economic reforms: A substantial increase in both prices and wages, a shift in the price-fixing mechanism changes in the distribution system decen..
Myung Chul Cho et al. Date 2003.12.27
Economic Reform, North Korean EconomyDownloadContentSummaryMyung-Chul Cho et al.
On July 1, 2002, North Korea launched a number of comprehensive economic reforms: A substantial increase in both prices and wages, a shift in the price-fixing mechanism changes in the distribution system decentralization of national planning, an increase in the autonomy of enterprise management, the opening of the distribution market for production methods differentiated distribution and a social security system reform. The far-reaching reform package has been met with mixed reactions. Some say it represents the communist nation's move toward a market economy, while others say that it is a band-aid approach to the planned economic system. Still others question whether the ambitious moves will pay off or not. (The rest is omitted.)