Search

Begin New Search Political Geography Korea Publication Year within 25 Years

71. Trade in Intermediate Goods: Implications for Productivity and Welfare in Korea

Author:
Kim Young Gui and Hak K. Pyo
Publication Date:
12-2016
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
There have been voluminous contributions such as Daudin et al. (2011), Johnson and Noguera (2012), Koopmans et al. (2010), and Trefler and Zhu (2010) in measuring value added trade based on input-output tables as generalizations of the vertical specialization measures following Hummels et al. (2001). These studies focused on trade in intermediate goods as a key feature of recent global trade. In the case of Korea, about 50% of total exports and 70% of its total imports are intermediate goods trade. This paper contributes to the discussion about the trade in intermediate goods and productivity by revisiting Basu (1995), Jones (2011), and Lee and Pyo (2007) to examine implications of trade in intermediate goods for macroeconomic business cycles and productivity and welfare at the current stage of Korean development. The major revision of the Basu (1995) model is attempted by decomposing intermediate goods into domestically produced intermediate inputs and imported intermediate inputs to investigate implications of the model in a small open economy. The major finding is that the procyclicality of the intermediate goods usage relative to labor usage and TFP changes in both value added and gross-output regressions are significantly weaker in a small open economy like Korea than the large economy of the United States. We also investigate the effects of misallocation and multiplier effects due to intermediate goods on industrial productivity and efficiency following the model of Jones (2011). Since the effects of misallocation can be intensified through the industrial input-output structure of the economy, we calculate the intermediate goods multiplier by Korea's 29 manufacturing industries. We find technical changes and the degree of inefficiency are related with the magnitude of multipliers, but we leave a fundamental identification problem to future research
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Asia and Korea

72. What Explains Current Account Surplus in Korea?

Author:
Han Chirok and Shin Kwanho
Publication Date:
12-2016
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Some countries have persistent current account surplus, contributing to global imbalances up to a level that is worrisome. For example, Germany has been continuously experiencing current account surpluses since 2002, amounting to 8.4% of GDP in 2015. China has never experienced current account deficits since 1997, the year that data is first available. Japan's record is even longer; its consecutive current account surplus started from 1981. Recently, Korea joined this large current-account surplus club: since the currency crisis in 1997, Korea's current account balance has been continuously in the black, expanding even more in these recent years. In this paper, we present an empirical methodology that explains how current account balances are determined and by employing it, try to diagnose factors that account for Korea's current account surplus. In fact, the IMF has introduced a methodology, the External Balance Assessment (EBA: Phillips et al., 2013), to assess exchange rate and current account gaps that are defined as the difference between current levels and those consistent with fundamentals. For example, the 2016 External Sector Report, by utilizing this methodology, demonstrates that Korea's real effective exchange rate in 2015 was 4 to 12 percent undervalued than the level consistent with fundamentals.
Topic:
International Political Economy
Political Geography:
Korea

73. Korean Unification and the Future of the U.S.-ROK Alliance

Author:
David F. Helvey
Publication Date:
03-2016
Content Type:
Policy Brief
Abstract:
Unification of the Korean Peninsula would remove the primary threat that has animated the U.S.–Republic of Korea (ROK) alliance for over 60 years, but it need not require termination of the alliance. An alliance between the United States and a unified Korea would, at a macro level, reinforce the international liberal democratic order. At a micro level, it could help ensure security on the Korean Peninsula during the process of integrating the North, assist in the defense of Korea, and serve as a platform for multilateral security cooperation. A future alliance should be a part of planning for Korean unification and should consider the purpose of the alliance, its roles and missions, coordinating structures, and presence (if any) of U.S. troops. It should also include diplomatic efforts to assure China, Russia, and Japan that a future alliance would respect sovereignty and support stability. A reconfigured alliance should reflect greater equality between the United States and a unified Korea to ensure its political sustainability in both capitals. Planning for a future alliance must not erode the critical functions of deterrence that the alliance performs today
Topic:
International Affairs
Political Geography:
Korea

74. An Assessment of the Korea-China Free Trade Agreement

Author:
Jeffrey Schott, Eujiin Jung, and Cathleen Cimino-Isaacs
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Of all the free trade agreements (FTAs) concluded by Korea with its major trading partners since the turn of the century, the Korea-China FTA may be the largest in trade terms. It is, however, far from the best in terms of the depth of liberalization and the scope of obligations on trade and investment policies. Korea and China agreed to liberalize a large share of bilateral trade within 20 years, but both sides incorporated extensive exceptions to basic tariff reforms and deferred important market access negotiations on services and investment for several years. Political interests trumped economic objectives, and the negotiated outcome cut too many corners to achieve such a comprehensive result. The limited outcome in the Korea-China talks has two clear implications for economic integration among the northeast Asian countries. First, prospects for the ongoing China-Japan-Korea talks will be limited and unlikely to exceed the Korea-China outcome. Second, Korea and Japan need to strengthen their bilateral leg of the northeast Asian trilateral and the best way is by negotiating a deal in the context of the Trans-Pacific Partnership.
Topic:
Economics, International Trade and Finance, Politics, and Bilateral Relations
Political Geography:
United States, China, Asia, and Korea

75. An Assessment of the Korea-China Free Trade Agreement

Author:
Jeffrey Schott, Euijin Jung, and Cathleen Cimino-Isaacs
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Of all the free trade agreements (FTAs) concluded by Korea with its major trading partners since the turn of the century, the Korea-China FTA may be the largest in trade terms. It is, however, far from the best in terms of the depth of liberalization and the scope of obligations on trade and investment policies. Korea and China agreed to liberalize a large share of bilateral trade within 20 years, but both sides incorporated extensive exceptions to basic tariff reforms and deferred important market access negotiations on services and investment for several years. Political interests trumped economic objectives, and the negotiated outcome cut too many corners to achieve such a comprehensive result. The limited outcome in the Korea-China talks has two clear implications for economic integration among the northeast Asian countries. First, prospects for the ongoing China-Japan-Korea talks will be limited and unlikely to exceed the Korea-China outcome. Second, Korea and Japan need to strengthen their bilateral leg of the northeast Asian trilateral and the best way is by negotiating a deal in the context of the Trans-Pacific Partnership.
Topic:
Economics, International Trade and Finance, Markets, Treaties and Agreements, and Bilateral Relations
Political Geography:
Korea

76. Unconventional Monetary Policy, Spillovers, and Liftoff: Implications for Northeast Asia

Author:
Marcus Noland
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
Unconventional monetary policy (UMP) has had predictable effects. How exit plays out is scenario-dependent. Quantitative easing has had the predictable effect of encouraging currency depreciation and some partner countries may have attempted to offset these exchange rate effects. Korea presents a particularly interesting case: it is relatively small and relatively open and integrated, in both trade and financial terms, with the United States and Japan, two practitioners of UMP. Authorities have acted to limit the won's appreciation primarily against the currency of China, not the US or Japan. Nevertheless, Korea's policy is a source of tension with the US. Under legislation currently being considered, the currency manipulation issue could potentially interfere with Korean efforts to attract direct investment from the US and create an obstacle to Korea joining the Trans-Pacific Partnership.
Topic:
Economics, International Trade and Finance, Markets, Monetary Policy, and Financial Markets
Political Geography:
Korea and Asia-Pacific

77. The Changing Military Balance in the Koreas and Northeast Asia

Author:
Anthony H. Cordesman and Aaron Linn
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The tensions between the Koreas – and the potential involvement of the People's Republic of China (China or PRC), Japan, Russia, and the United States of America (US) in a Korean conflict – create a nearly open-ended spectrum of possible conflicts. These conflicts could range from posturing and threats – “wars of intimidation” – to a major conventional conflict on the Korean Peninsula, intervention by outside powers like the US and China, and the extreme of nuclear conflict.
Political Geography:
Russia, United States, Japan, China, Korea, and Northeast Asia

78. A chronic protection problem: the DPRK and the Responsibility to Protect

Author:
Alex J. Bellamy
Publication Date:
04-2015
Content Type:
Journal Article
Institution:
Chatham House
Abstract:
Until recently, the human rights situation in the Democratic People's Republic of Korea (DPRK) had elicited relatively little attention from institutions, activists and analysts concerned with the implementation of the Responsibility to Protect (R2P) and protection of populations from genocide, war crimes, ethnic cleansing and crimes against humanity. However, on 18 November 2014, the Third Committee of the United Nations General Assembly passed a resolution that referred to R2P and called on the UN Security Council to refer the situation in the DPRK to the International Criminal Court (ICC) and adopt targeted sanctions. Although it remains to be seen whether the Security Council will take up this challenge, ten of the Council's 15 members indicated privately their support for the initiative.
Topic:
United Nations
Political Geography:
Korea

79. Security ties or electoral connections? The US Congress and the Korea–US Free Trade Agreement, 2007–2011

Author:
Jungkun Seo
Publication Date:
05-2015
Content Type:
Journal Article
Journal:
International Relations of the Asia-Pacific
Institution:
Japan Association of International Relations
Abstract:
Conventional wisdom is that trade policy is often guided by geopolitical security considerations. A growing body of research addresses the security–trade linkage as a plausible cause for executive negotiations over the Korea–US Free Trade Agreement (KORUS FTA) in 2007. Yet, the approval of a trade deal with the Asian ally by America's legislature in 2011 features not only ‘security ties’ but also ‘electoral connections’. This paper seeks to examine the question of whether alliance relationships would inevitably translate into domestic commitments. Bringing domestic politics into consideration, this article also fills the gap in the literature on Congress-focused research of the KORUS FTA and sheds light on how lawmakers strike a balance between the principle of US foreign policy and the reality of conflicting domestic interests.
Topic:
Security, Geopolitics, and Free Trade
Political Geography:
Asia, North America, Korea, Asia-Pacific, and United States of America

80. Where Are E-governments in South Asian Countries? A Comparative Approach

Author:
Jin-Wan Seo and Hasan Md Golam Mehedi
Publication Date:
07-2015
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
The four countries are selected and compared based on their use of e-government as a tool to work and share information more effectively while delivering better services to the public. It also provides a general understanding of e-government and uses different variables to discuss the reality of e-government development and e-participation over the last few years in these four countries. In view of this, the time series data are collected from the United Nations e-government survey to highlight developing trends in e-government along with issues and challenges, best practices, and opportunities for the development of egovernment. As a result, this study finds that real e-government remains a distant hope in these countries due to the expense of supplying technology, a lack of infrastructure, limited human capital and a weak private sector.
Topic:
Development, Science and Technology, Infrastructure, and Internet
Political Geography:
Pakistan, Bangladesh, South Asia, India, Asia, and Korea