East Asian Economic Review最新文献

{"title":"Protection of Intellectual Property Rights and Subsidy Policy for Foreign Direct Investment","authors":"Moonsung Kang","doi":"10.11644/KIEP.JEAI.2012.16.2.246","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2012.16.2.246","url":null,"abstract":"This paper provides a theoretical setup for an analysis of strategic relationships inherent to activities of an innovative multinational enterprise (MNE) and a local company in a host country. Additionally, we explore the incentives of the host country's government to provide subsidies to attract foreign direct investment (FDI) and to protect outcomes of R&D activities conducted by the MNE. We show that the MNE's commercial interests may collide with local companies’ over protection of IPRs. Therefore, the extent of knowledge spillovers from the MNE to the local company and the magnitude of incentives to the MNE perform a crucial function in determining the optimal policy mix of IPR protection and FDI subsidies of the host country's government.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2012-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64812514","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":"Alternative Monetary Policy Rules in a Small Open Economy with Financial Frictions: The Case of Korea","authors":"Yongseung Jung","doi":"10.11644/KIEP.JEAI.2011.15.3.235","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2011.15.3.235","url":null,"abstract":"This paper first shows an empirical result of VAR that Korean economy has experienced a severe economic contraction to an exogenous country spread shock. To analyze the effect of alternative monetary policy on the economy, the paper sets up a multi-sector small open economy new Keynesian (NK hereafter) model with financial frictions due to asymmetric information between firms and financial intermediaries along the line of Bernanke et al. (1999). It shows that the small economy with financial frictions is more vulnerable to the exogenous shocks such as the foreign exchange rate shock under the fixed exchange rate regime than under the flexible exchange regime. It also shows that the interest rate rule that responds to financial market conditions is better than any other interest rate rules only if it does not react to the exchange rate fluctuations. Moreover, an interest rate rule that responds to the exchange rate fluctuations, i.e. the monetary policy under the managed floating exchange rate regime is inferior to the monetary policy rules that do not respond to the exchange rate fluctuations. Finally, it shows that the monetary authority needs to stabilize a narrow price index such as domestic price index rather than a general price index such as consumer price index under the financial friction circumstances.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2011-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64812318","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":"Decomposition into Tradables and Nontradables and the Purchasing Power Parity (PPP) Hypothesis of the Real Won-dollar Exchange Rate","authors":"Deockhyun Ryu, Hee-Chae Ko","doi":"10.11644/KIEP.JEAI.2011.15.3.236","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2011.15.3.236","url":null,"abstract":"The purpose of this paper is to test the purchasing power parity (PPP) hypothesis using the won-dollar real exchange rate and analyze the effect of the decomposition into tradables and non-tradables on the change of the won-dollar real exchange rate. This paper decomposes the CPI-based real exchange rate into two parts according to Engel (1999); one is the relative price of traded goods between the countries, the other is a component that is a weighted difference of the relative price of nontraded-to traded-goods prices in each country. We construct this by comparing the component subsection weights in CPI. The empirical analysis of this paper consists of two parts as follows. First, we conducted a traditional time series analyses of the real exchange rate, tradable and non-tradable parts respectively, thereby testing the PPP hypothesis and other important hypotheses. Secondly, this paper conducted a Mean Squared Error (MSE) analysis to evaluate the relative contribution of tradable and non-tradable parts to the change of real exchange rate. From the time series analysis, it is not guaranteed that the PPP hyThe purpose of this paper is to test the purchasing power parity (PPP) hypothesis using the won-dollar real exchange rate and analyze the effect of the decomposition into tradables and non-tradables on the change of the won-dollar real exchange rate. This paper decomposes the CPI-based real exchange rate into two parts according to Engel (1999); one is the relative price of traded goods between the countries, the other is a component that is a weighted difference of the relative price of nontraded-to traded-goods prices in each country. We construct this by comparing the component subsection weights in CPI. The empirical analysis of this paper consists of two parts as follows. First, we conducted a traditional time series analyses of the real exchange rate, tradable and non-tradable parts respectively, thereby testing the PPP hypothesis and other important hypotheses. Secondly, this paper conducted a Mean Squared Error (MSE) analysis to evaluate the relative contribution of tradable and non-tradable parts to the change of real exchange rate. From the time series analysis, it is not guaranteed that the PPP hypothesis hold in the long run. The Balassa-Samuelson hypothesis is not either, since the sample size is too small to avoid the 'power problem.' In addition, the result of the Mean Squared Error analyses show that tradable goods are more important in explaining the won-dollar real exchange rate dynamics than that of the non-tradable goods. All in all, the results of this empirical analysis are in contrast with the explanation that if the long-run PPP hypothesis does not hold, it is mainly caused by the transaction cost and the non-tradable goods.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2011-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64812497","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":"Investigation of Global Imbalances Based on a Gravity Model","authors":"Hyun‐Hoon Lee","doi":"10.11644/KIEP.JEAI.2011.15.2.231","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2011.15.2.231","url":null,"abstract":"Using the US Treasury International Capital (TIC) data, this paper attempts to analyze the size and trend of foreign investment in the U.S. in the form of equities, bonds and bank lending during the period of 2001-2007. In addition, this paper assesses the determinants of foreign investment in the U.S., using the financial gravity model which includes an East Asian dummy as an explanatory variable. The results show that most East Asian countries have invested more in the U.S. than the optimal level suggested by the gravity model. Such an over-investment is more evident in long-term bond investment than in equity investment or bank lending. Thus, the results confirm that global imbalance does exist between East Asian countries and the U.S.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2011-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64812189","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":"Output Volatility and Growth in Korea, China and Japan","authors":"J. H. Lee, Jinyoung Hwang","doi":"10.11644/KIEP.JEAI.2011.15.1.227","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2011.15.1.227","url":null,"abstract":"The existing literature has shown that the relationship between output volatility and growth depends on data and/or estimation methods. In this paper, an empirical examination is made of the link between output volatility and growth in Korea, China and Japan, using monthly data on the index of industrial product from 1990 to 2009. Specifically, a country's growth and output volatility are measured by the ratio of change in industrial product and its conditional standard error, respectively. Using EGARCH-M model, provided by Nelson (1991), to accommodate the asymmetry of economic fluctuation, estimates indicates that output volatility is negatively and significantly associated with the growth in Korea. However, the relationship between output volatility and growth is positive and statically significant in China, whereas there exists very little evidence in Japan. Moreover, unexpected positive shocks have positive impacts on growth in Korea and China, whereas the impacts are very small in Japan. Regression results also suggest that the impacts of unexpected negative shocks on growth are negative in all countries, and the magnitude is the biggest in Korea and the lowest in Japan.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2011-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64812059","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":"Informational Efficiency in the USD/KRW Spot Market: Some Evidence from a Joint Runs Test and Foreigners’ Trading Rule Profits","authors":"Changmo Ahn","doi":"10.11644/KIEP.JEAI.2010.14.2.221","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2010.14.2.221","url":null,"abstract":"This paper examines whether the USD/KRW spot market is efficient in processing new information by employing both the Runs Test and the foreigners' securities trading rule profitability approach. Excluding the period of 2008 financial crisis, the USD/KRW spot market is efficient in terms of close rates, but not efficient in terms of open rates. The foreigners' securities trading rule can also produce statistically significant profits if the trades are based on open prices, though not high. This implies that traders can predict future exchange rates, to some degree, with the information on foreign net purchases of securities in the Korean stock/ bond markets. If we consider the related interest differentials and transaction costs, however, the profits fade out to marginal level or below. This result implies that traders can expect the existence of predictability in the USD/KRW spot market, but not profitability.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2010-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64811919","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":"The Role of Exchange Rates in Korea’s Commodity Trade with China","authors":"Gab-Je Jo","doi":"10.11644/KIEP.JEAI.2010.14.2.218","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2010.14.2.218","url":null,"abstract":"In this paper I investigate the link between Korea's trade balance and the exchange rate, using both aggregated and disaggregated data. Employing the bounds testing approach to cointegration, and error-correction modeling, when I use the aggregate trade balance as a dependent variable, I find no support for the J-curve in the short-run; and also find that in the long-run, the exchange rate had a significant positive impact on the trade balance. However, in both the short and the long-run, I find that the exchange rate does not play a significant role in deterIn this paper I investigate the link between Korea’s trade balance and the exchange rate, using both aggregated and disaggregated data. Employing the bounds testing approach to cointegration, and error-correction modeling, when I use the aggregate trade balance as a dependent variable, I find no support for the J-curve in the short-run; and also find that in the long-run, the exchange rate had a significant positive impact on the trade balance. However, in both the short and the long-run, I find that the exchange rate does not play a significant role in determining the bilateral trade balance between Korea and China, nor does it improve the disaggregated trade balance. This is because the exchange rate elasticity of the trade balance depends on the nature of the commodity. Especially if the commodity is an intermediate good or a raw material, the exchange rate elasticity in trade balance could be inelastic because the demand for the intermediate good is a derived demand from the final good.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2010-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64811840","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":"Changing Pattern and Relation with Technological Level of the Korean and Japanese Export Competitiveness","authors":"Yongyul Kim","doi":"10.11644/KIEP.JEAI.2010.14.2.222","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2010.14.2.222","url":null,"abstract":"The purpose of this paper is to explore empirically whether export competitiveness of Korea and Japan has changed since 1990s. Unlike existing literature, we tried to grasp changing patterns of export competitiveness by new methodology such as belonging quadrant and moving direction, rather than simply showing its trend or comparison classified by industry. And we categorized 48 sectors into some technological levelsThe purpose of this paper is to explore empirically whether export competitiveness of Korea and Japan has changed since 1990s. Unlike existing literature, we tried to grasp changing patterns of export competitiveness by new methodology such as belonging quadrant and moving direction, rather than simply showing its trend or comparison classified by industry. And we categorized 48 sectors into some technological levels, then analyzed how the change of export competitiveness is distributed by each technological level. When seeing 'revealed comparative advantage' and 'trade specification index', we found considerable changes in export competitiveness. Competitiveness of Korea has rapidly improved while that of Japan has been continuously decreasing. Especially the gap of competitiveness between Korea and Japan has largely reduced around the midterm of 2000s. Shrinking of the gap in export competitiveness has begun from the latter half of 1990s and first half of 2000s. Change of export competitiveness shows different trend by technology level. Korea has gained more competitiveness than Japan in high and middle level of technology. Korea shows upward tendency of competitiveness in mid and high technology, while Japan in low technology. Competitiveness gap between Korea and Japan is rapidly decreasing since the late 1990s, and curtailment of the gap is mainly happening in the high level of technological capabilities.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2010-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64812325","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":"What makes international capital flows so volatile? Push vs. pull factors in the case of Korea","authors":"Tae-Joon Kim, Jai-Won Ryou","doi":"10.11644/KIEP.JEAI.2010.14.2.220","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2010.14.2.220","url":null,"abstract":"This paper analyzes the determinants of financial capital flows in Korea, which provides an intriguing case for examining the volatility of such flows as an almost fully opened capital market. Our empirical analysis finds both pull and push factors have significantly affected all three types of foreign capital flows- foreign equity investment, foreign bond investment and foreign other-type investment- in Korea, though the relative importance of each factor varies by sample period and type of financial capital. First, the determinants of capital inflows changed substantially following the 1997 currency crisis. The impact of push factors on foreign investment strengthened, rendering the Korean stock and bond market more susceptible to external shocks. Second, the global financial crisis, which increased global financial instability and preference for safe assets, appears to have had a negative effect on other-type investment. However, fThis paper analyzes the determinants of financial capital flows in Korea, which provides an intriguing case for examining the volatility of such flows as an almost fully opened capital market. Our empirical analysis finds both pull and push factors have significantly affected all three types of foreign capital flows- foreign equity investment, foreign bond investment and foreign other-type investment- in Korea, though the relative importance of each factor varies by sample period and type of financial capital. First, the determinants of capital inflows changed substantially following the 1997 currency crisis. The impact of push factors on foreign investment strengthened, rendering the Korean stock and bond market more susceptible to external shocks. Second, the global financial crisis, which increased global financial instability and preference for safe assets, appears to have had a negative effect on other-type investment. However, foreign equity investment showed a quick recovery in the wake of global financial crisis. Third, the effects of capital account liberalization on capital flows appear more complicated than expected. Korea's opening up of the stock market to foreign investors in 1992 did not usher in foreign equity investment. The liberalization of foreign portfolio investment after the 1997 crisis produced a significant effect on equity, but not on bond investment. Still, how to stabilize capital flows amid more deeply integrated domestic and foreign financial markets is another matter.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2010-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64811905","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":"A Study on GHG Abatement Costs in Korea: International Emissions Trading and Major Sectors of Carbon Reduction","authors":"Chang-soo Lee, Namdoo Kim","doi":"10.11644/KIEP.JEAI.2010.14.2.223","DOIUrl":"https://doi.org/10.11644/KIEP.JEAI.2010.14.2.223","url":null,"abstract":"In this paper, we estimate the cost of the GHG abatement target by Korean government using a trade-based model, GTAP-E, after updating all the database of industrial and trade structures as well as carbon dioxide emissions of most of regions of the world. Major findings of this paper are as follows. First, estimates of the costs, GDP and welfare costs as well as abatement cost, of the GHG abatement target differ substantially by two things: (1) assumption on carbon reductions in other countries (the reduction only in Korea or commitments with Annex I countries), (2) assumption on international emission trading. Second, governmental policy to set sectoral abatement target would increase the costs than otherwise in spite of the same level of the carbon reduction. But in the case of mild adjustments of sectoral targets by the government, the policy with more reductions in industrial sectors than private consumptions are absolutely better than the other (reducing more in private consumptions).","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":null,"pages":null},"PeriodicalIF":0.8,"publicationDate":"2010-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64812458","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}