{"title":"Explaining Home Bias in Trade: The Role of Time Costs","authors":"Lee Inkoo","doi":"10.11644/KIEP.JEAI.2010.14.2.216","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2010.14.2.216","url":null,"abstract":"We study how time costs, combined with elasticity of substitution across home and foreign goods, can explain the home bias puzzle in a framework of flexible prices. Using a simple two-country model, we show that introducing time costs to an otherwise standard competitive model improves its ability to rationalize home bias in trade. Our analysis suggests that home bias and corresponding incomplete risk-sharing naturally arise in the presence of time costs, even under the assumption of complete financial markets and low elasticity of substitution between home and foreign goods.","PeriodicalId":286252,"journal":{"name":"Journal of East Asian Economic Integration","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121867364","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effects of Current Forward Market Intervention in the Korean Currency Crisis","authors":"Moon Woosik","doi":"10.11644/KIEP.JEAI.2001.5.1.75","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2001.5.1.75","url":null,"abstract":"This paper investigates the effect of the exchange market interventions of the Bank of Korea on the exchange rate of Korean won vis-a-vis US dollar during the 1997 currency crisis. In particular, this paper tests the effects of spot and forward market interventions, using daily intervention data of the Bank of Korea. During the 1997 period, Korea faced two series of crisis in January-March and September-November. It turns out that the spot market intervention was effective in stabilizing the spot market exchange rate at least during the first crisis period. In contrast, there seemed no effect of the forward market intervention. Forward market intervention was rather destabilizing through forward exchange rate during the second crisis period. This implies that even though the forward and sterilized spot market interventions are equivalent in their effect on exchange rate, these two instruments can widely diverge from each other under the circumstances of exchange rate volatility and speculation.","PeriodicalId":286252,"journal":{"name":"Journal of East Asian Economic Integration","volume":"70 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2001-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121573758","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic Restructuring and Capital Inflow: Thailand and Korea","authors":"Ro Jae-Bong, Kwon Kyoung-Dong","doi":"10.11644/KIEP.JEAI.1998.2.4.32","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.1998.2.4.32","url":null,"abstract":"South Korea and Thailand which are receiving the financial support from IMF got similar international remarks on promoting the economic reform that has an exemplary effect. However, there are not only differences in the causes of the economic crisis, but also the status and effect of the economic reform. At present, Thailand gets a more ascendant status than South Korea in the \"quo\" status of attracting foreign investment. The reason is that the causes of the economic crisis in Thailand are relatively simple and the process of economic reform is also simple. Besides, Thailand is in the condition which made the effect came true easy. Meanwhile, since the procedures of firing the staff in Thailand are cut off, and the employees are easy to lose their jobs, it insures the flexibility of the labor market. Besides, the Thai government reduces the investment risk of foreigners by way of investing in stocks of the same value or remaining guarantee. South Korea also should insure the flexibility of the labor market and promote the flexibility of attracting foreign investment, which bases on the cooperation of the workers, employees and the government. If transfers the ill creditor's rights to large bank, foreign investors should be encouraged by permitting an alternative of receiving the good asset or government warranty.","PeriodicalId":286252,"journal":{"name":"Journal of East Asian Economic Integration","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1998-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128744934","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Interface of the Anti-dumping and Countervailing Duty Laws, Administrative Tribunal and Economic Analysis: the Injury and Causality Tests in Canada","authors":"O. Kwon, I. Uhm","doi":"10.11644/KIEP.JEAI.1998.2.3.28","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.1998.2.3.28","url":null,"abstract":"In the consequence analyzing methods which are frequently used by the Canadian administrative tribunal, there are dualistic approximation method which uses the trend analysis and unitary approximation method which uses economic analysis. The disadvantage of the dualistic approximation method is that it cannot separate the effect out of dumping and the effect of dumping. In the contrary, the unitary approximation method includes methods like the countable partial equipoise model and computation model which could overcome the similar question. This thesis made comments on the advantages and disadvantages of the above two economic analysis by way of analyzing the Canadian case used in the damage arbitration process. And found that both the two methods could enhance the objectivity, transparency and fairness in the damage arbitration, meanwhile, the countable partial equipoise model is more practical under the restriction of time and resources. Especially, this thesis definitely brought forward the conjunction between the trade regulation and the economic analysis in the process of the damage arbitration of the Canadian administrative tribunal.","PeriodicalId":286252,"journal":{"name":"Journal of East Asian Economic Integration","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1998-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126783360","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}