Constitutional Handbook on Korean Unification(I): Introduction Constitutional Handbook on Korean Unification(II): Political and Social Issues Constitutional Handbook on Korean Unification(III): Law Issues Constitutional Handbook on Korean Unification(IV): Economic Issues
This study investigates the effect of information technology (IT) on productivity growth in an information economy. A substantial number of studies have found significant and positive relationships between IT and U.S. productivity growth. The recent literature on the productivity surge during the second half of the 1990s has confirmed that almost all of the productivity improvement in the United States was attributable to IT. However, the existing studies have one important missing element in the analysis of the importance of IT in productivity growth. They have failed to unravel where productivity growth comes from. This study has extended the existing literature in several important ways. First, we have successfully decomposed the sources of productivity growth into technological progress, efficiency improvement, and scale economies using a stochastic frontier production function. We have applied our model to Korea which has emerged as an Internet paradise in the late 1990s. Another merit of using Korean data is provided by the availability of vast panel data that include observations on 4,022 firms from 1996 to 2000. We have found a strong relationship between IT and productivity growth. Surprisingly, productivity growth remained quite strong despite the 1997 financial crisis and the subsequent recession, and the bust of the IT bubble in 2000. Our empirical results also show that approximately 80% of TFP growth comes from technological progress, 15% of TFP growth comes from efficiency improvement, and the rest comes from scale economies. Thus, the dominant source of TFP growth is technological progress, but the proportion of efficiency improvement in TFP growth has continually increased. Efficiency improvement primarily represents improved management and organizational productivity. Thus our study supports two proposed hypotheses: (1) productivity growth under the New Economy is more robust to business cycles than under the Old Economy, and (2) improvement in business efficiency plays a greater role in enhancing productivity under the New Economy than under the Old Economy. We conclude that information technology has already made a quantum difference in productivity growth. Information Technology, Productivity Growth, and Production Potential A Brief Review of the Literature Methodology Empirical Analysis Concluding Remarks and Policy Implications
The Northeast Asia Economic Forum (NEAEF) is a regional nongovernmental organization created in 1991 to sponsor and facilitate research, networking, and dialogue relevant to the economic and social development of Northeast Asia. The Forum is also committed to promoting understanding and relations among the peoples of Northeast Asia, North America, and Europe. The main objective is for NEAEF to conduct research and conference activities aimed at functional economic cooperation such as cross-border energy, transportation and logistics infrastructure development, and capital mobilization. The Forum holds annual conferences, workshops, and seminars for planning, facilitating, coordinating, and implementing international and interdisciplinary solutions to common policy problems. It is the only nongovernmental regional organization in which all the nations of Northeast Asia and the US are consistent and active participants. For the year 2014, NEAEF in collaboration with the Korea Institute for International Economic Policy (KIEP), cooperated in efforts toward achieving closer economic and financial cooperation in Northeast Asia, and continued its focus on research, the annual conference, and meetings aimed at financing regional economic integration and establishment of the Northeast Asian Bank for Cooperation and Development (NEABCD). This work aims to promote functional economic cooperation in terms of cross-border resources, energy supplies, infrastructure construction, capital mobilization, and institutional development. NEAEF, as planned for the year 2014, facilitated conference and meeting activities in which experts presented their perspectives, views, ideas, concrete proposals, and strategies relevant to the issues of a regional institution for financial cooperation. This volume, which is the final part of a series of proceedings titled Financing Regional Economic Integration and Functional Preface Contributors Introduction and Overview Statements by Hosts and Country Representatives Part I. Regional Economic Cooperation in Northeast Asia: Country Perspectives - A Korean Perspective (Chang Jae Lee)? - A Chinese Perspective (Zhang Jianping) - A Japanese Perspective (Maeda Tadashi) - A Russian Perspective (Pavel Minakir) Part II: Energy Cooperation: Energy Infrastructure and Physical Connectivity Japan’s Energy Challenges and Potential for Regional Cooperation (Tanabe Yasuo) Energy Issues: Security, Alternative Systems, and Low-Carbon Futures (Terry Surles) Prospects for a Cross-border Power System in Northeast Asia (Iinuma Yoshiki) Energy Cooperation in Northeast Asia: A Russian Perspective (Sergey Sevastianov)
Strategies of East Asian Countries for Negotiating FTAs Economic Effects of FTAs Market Access in Major FTAs Rules of Origin in East Asian FTAs Negotiated Liberalization or Protectionism Prospects for Trade Integration in East Asia in Lieu of Conclusions
I. Introduction II. Trend of Trade and FDI between India and East Asia 1. Trade 2. FDI III. Literature Review and Distinction IV. Data, Methodology and Estimation 1. Analyzed Countries and Data 2. Methodology 3. Estimation V. Conclusion and Policy Implication References Appendix
ICT and Internet economy development has been one of the main interests of Asia-Pacific regional cooperation from the early stage of APEC and the Telecommunications and Information Working Group (TEL or TELWG) was established in 1990 to promote building the Asia-Pacific Information Society (APIS). The objective of this study is to highlight and analyze the economic benefits ICT development or the Internet economy will offer as a new source of economic growth, promoting innovative development in the Asia-Pacific region. This study begins by briefing the activities of APEC and the APEC Telecommunications and Information Working Group and then overviews the current state of ICT development in the APEC member economies based on the ICT Development Index (IDI) published by ITU, analyzes the potential benefits of further ICT development in terms of economic growth, or in some sense, productivity growth, and finally presents implications and suggestions for ICT development or the Internet economy to facilitate economic growth of the Asia-Pacific region. Some of the findings and implications of this study are as follows. Despite the huge gaps among the APEC member economies, ICT as a whole has been developed significantly in the APEC region and the gaps have also been reduced in general during 2002-2012. The progress seems to be converging rather than diverging among the APEC member economies. However, there are still huge and enlarged gaps between these economies when it comes to ICT utilization. APEC therefore needs to make efforts to bridge the ICT development gaps existing among its member economies, especially regarding ICT utilization, in addition to continued efforts to further close the gaps in ICT infrastructure, which is regarded as a great achievement of the previous decade. ICT development is expected to bring about significant progress in the economic growth of each of the APEC member economies as well as APEC as a whole. APEC can share the experience of member economies with extraordinary progress in ICT development between 2002 and 2012, such as Viet Nam, Russia, Indonesia, China, Philippines, Peru, Malaysia, etc. APEC needs to identify and share their success factors and policy experiences. Executive Summary I. Introduction II. ICT Development and Cooperation in APEC 1. APEC Activities and ICT Cooperation 2. APEC TEL Focus and Targets III. IDI and ICT Development in APEC 1. ICT Development Index (IDI) 2. ICT Development in APEC IV. ICT Development and Economic Growth 1. Reference Studies and Motivation 2. Production Function Approach 3. Endogenous Growth Model Approach 4. ICT Development and Economic Growth in APEC V. Implications for APEC Cooperation References Appendix
Agricultural Development and Technical Cooperation toward Green and Inclusive Growth in East Asian APEC Economies East Asian APEC economies should expand cooperation, as they have common goals to achieve greater food self-sufficiency and food security by 2020. In Asia, the issues of undernourished (particularly China), small-scale farming due to limited farmland and consequently low levels of mechanization, aging and feminizing farm workforce are crucial. These problems will be exacerbated to be solved due to increasingly open markets through the proliferation of free trade agreements. To tackle these challenges, through increasing agricultural productivity and production, and adequate agricultural trade development, economies should improve food security and tackle related social issues. In this regard, agricultural technical cooperation among East Asian APEC economies has advantages: they share relatively common problems of and approaches to agricultural labour force and agricultural economy; in addition, agricultural trade among APEC Asian economies is growing faster than any other region. They can form collective responses while sharing best practices and experiences, technical and financial assistance, common responses to environmental and climate change issues, development of data infrastructure, minimizing the negative impact from agricultural open market. Concretely, East Asian APEC member economies can better gather and share alternative indicators that measure emerging contemporary agricultural issues by including them into statistical systems. Through this, they can build more adequate policies. It is also necessary to create collective solutions for transition of agricultural labour force, especially small-scale farmers, into higher-value and ecological farming or productive non-farm sector through skills development and for better coping with consequent shocks and adjustments from increasing free trade agreements. In order to do so, they need to bring up collective commitment to agricultural development and investment for the long term. Achieving such cooperation will require strong, effective, and well-resourced driving agents. Despite the limitations of APEC’s current institutional bodies on agricultural technical cooperation, if APEC is committed to the Food Security Road Map of improving food security by 2020, then it must extend its cooperative efforts such as the Agricultural Technical Cooperation Working Group (ATCWG) and Policy Partnership on Food Security (PPFS) to be increasingly focused and include a wider range of actors, including farmers ? the true agents of change in any agricultural system. I. Introduction II. Agricultural Development in East Asian APEC Economies 1. The Economic Importance and Productivity of Agriculture 2. Food Security and Agricultural Production 3. Food Self-Sufficiency III. Challenges Facing Agricultural Development and Trade in East Asian APEC Economies 1. Agricultural Prices and Trade 2. Stagnating Agricultural Productivity: Land, Investment and Technology IV. Agricultural Technical Cooperation in APEC 1. Advantages and Future Possibilities 2. Requirements for Effective Technical Cooperation V. Conclusion
This paper reviews changes in role of European Parliament (EP) in EU’s trade policy since the Lisbon Treaty. The Treaty brought about important changes in EU governance, and in particular, strengthening of the role of the EP. EP’s competences in trade policy were also strengthened. All trade agreements with third countries require a consent from the EP in the ratification procedure and all trade-related legislations must be jointly decided by the Council and the EP. This paper examines the determinants of voting patterns for EU’s trade legislations including EU’s Free Trade Agreements (FTA) with Korea and Colombia/Peru. The results confirm that Members of European Parliaments (MEP) still tend to vote with others in their political groups in trade legislations and their voting pattern is not very different from the previous pattern. This trend is confirmed by both the comparison of intra-voting cohesion index and the empirical test based on the probit model. Country-specific variables do not explain well the voting behavior of MEPs. However, it is noteworthy that some MEPs voted in line with their national interests in case of Korea-EU FTA. It is expected that influences of the EP on EU’s trade policy would increase over time, as MEPs realize their new powers and learn how to use it to reflect their opinion on EU’s trade agenda. As the EU expands its FTAs to the United States and Japan, much larger trade partner than the EU ever negotiated, more active involvements from the EP are expected. This means that various interest groups, such as trade associations and NGOs will attempt to exert greater influence on the European Parliament as well as the European Commission. I. Introduction II. Role of European Parliament in the EU’s Trade Policy 1. EU’s Trade Policy and the EP’s Involvement 2. Changes in EP’s Competences after the Lisbon Treaty III. Literature Review of Voting Patterns of European Parliament 1. The Voting Patterns of European Parliament 2. US Congressional Voting on Trade Policy IV. Econometric Analyses 1. Trade Legislations Examined 2. Votes by Political Groups and Countries 3. Empirical Test of Votes (Probit Model) V. Conclusion
Preface Ⅰ.A Study to Analyze CostBenefits of the Reunification of Korean Peninsula to the United States (Marcus Noland) 1. Unification Scenarios and Interests of the United States 2. General Equilibrium Calibration of Unification 3. Implications for the United States from the Gravity Model 4. Policy Issues Ⅱ.A Study to Analyze CostBenefits of the Reunification of Korean Peninsula to China (Jin Jingyi et al.) 1. Introduction 2. Ideal Condition of the Korean Peninsula within China’s Development Strategy in Northeast Asia 3. Unification of the Korean Peninsula and Economic Benefits for China 4. Unification of the Korean Peninsula and Security Benefits for China 5. Sino-Korean Cooperation Strategies for Korean Unification 6. Conclusion Ⅲ.A Study to Analyze CostBenefits of the Reunification of Korean Peninsula to Japan (Kyoji Fukao et al.) 1. Introduction 2. Scenarios of Economic Development after Unification 3. Increase in GDP and Employment in Japan and Other Major Economies 4. A ‘Super Korea’ as Japan’s Rival in the East Asian Division of Labor 5. Financing North Korea’s Infrastructure 6. Role of Japanese Private Firms in Supporting the Infrastructure Projects Ⅳ.A Study to Analyze CostBenefits of the Reunification of Korean Peninsula to the Russian Federation (Alexander Zhebin et al.) 1. Factors Determining Russia’s Korean Policy 2. Major Shortcomings of the Existing Reunification Scenarios 3. Cost-Benefits of 5 Unification Scenarios 4. Suggestions for South Korea’s Unification Policy Ⅴ. The Effects of Economic Integration between South and North Korea(Sung Hankyoung) 1. Introduction 2. Changes due to Economic Integration 3. Model and Scenario 4. Analysis of Results by Scenario 5. Comparative Analysis of Scenario Results 6. Policy Implications Ⅵ.Gradual Economic Integration between South and North Korea and Economic Cooperation in Northeast Asia (Kang Moonsung et al.) 1. Introduction 2. Fundamental Directions for Achieving Economic Integration of North andSouth Korea 3. North and South Korean Economic Integration and Effects on NortheastAsian Division of Labor 4. North and South Korean Economic Integration and Northeast AsianEconomic Cooperation 5. Gradual Achievement of South and North Korean Economic Integration Ⅶ.Analysis on Diplomatic and Security Benefits of Unification and Strategies for Unification (Chun Chae-sung et al.) 1. Introduction 2. International Politics in the Current East Asian Region 3. Position on the Unification in the Korean Peninsula of Countries US, China,Japan and Russia 4. Unification Diplomacy Strategies for the Unified Korean Peninsula vis-à-visNeighboring Countries Those of us living in the contemporary times have a common mission to achieve unification in the Korean peninsula for the joint progress of South and North Korea based on the support of the international society and Northeast Asian cooperation. Korean unification is also an historical imperative for the Koreans who have been one nation and one people for a long time. Therefore it is necessary to present to the government strategies and policy alternatives through in-depth research on ‘when’ and ‘how’ unification would be achieved, and ‘what’ kinds of impact it would have, rather than ‘if’ it will happen. In this respect, this book is a summary of 7 studies conducted under the ‘Research Project on the Unified Korea and Northeast Asian Economic Cooperation’. Its main contents include analyses on the costs and benefits of the unification of Korea in the perspective of its four neighboring countries—US, China, Japan, and Russia; effects of inter-Korean economic integration in Korea’s perspective, and analysis of diplomatic/security benefits of unification. The world is now more interconnected than ever, and Korean unification will invariably impact its neighbors. In this regard, the cost-benefit analyses of the four countries are quite meaningful in that 12 overseas Korea specialists analyze the benefits of Korean unification and provide policy suggestions to maximize these benefits from the perspective of their own respective countries. In addition, the three research projects conducted by 11 domestic experts which provide advice on the effects of economic integration along with strategies for Northeast Asian cooperation based on their analysis on inter-Korean economic integration and diplomatic/security benefits of unification are also extremely valuable. The research projects conducted by researchers from 4 major countries present four unification scenarios-status-quo, North Korea’s reform and opening-up, absorption of the North by South Korea, and peaceful unification. In the case of peaceful unification, which is preferable to all parties involved, the US, China, Japan, and Russia will all witness an increase of $7.6 to 48.5 billion in their GDPs, and creation of 210,000 to 5,640,000 new jobs, resulting in positive ripple impacts for all 4 countries. According to the analyses, China will be the biggest benefactor of Korean unification, the US and Japan will reap similar benefits, and Russia will benefit the least. In the event of Korean unification, China’s three northeast provinces will become a vibrant logistics center and hub for the Eurasian Continent and the Pacific region. According to the study by Japanese researchers, a ‘Super Korea’ will emerge after Korean unification, rivaling Japan. The russian researchers analyzed that if energy exports increases; and the Siberian railway and gas pipeline were connected all the way to the Korean peninsula as a result of unification, it will lead to an economic boom in the Far East. Domestic researchers show that unification will bring changes in factors of production, market expansion, decrease in military spending, and improvement in international credit rating. According to their various unification scenarios, North and South Korea’s GDP growth rates will increase 16%p and 1%p respectively between 2016 and 2030. In the early stages of unification, independent currencies should be used but One Korea Indexed Unit of Account (OKU) must also be introduced; and in order to make use of North Korea’s human resources, disparity of wages between South and North Korea is unavoidable. They also analyze that a unified Korea will contribute to the resolution of the security dilemma in Northeast Asia by buffering the competition for economic and military hegemony between major powers such as the US vis-a-vis China and China vis-a-vis Japan, facilitating cooperation. Also, North Korea’s denuclearization alone will, in and of itself, significantly benefit neighboring countries. Those of us living in the contemporary times have a common mission to achieve unification in the Korean peninsula for the joint progress of South and North Korea based on the support of the international society and Northeast Asian cooperation. Korean unification is also an historical imperative for the Koreans who have been one nation and one people for a long time. Therefore it is necessary to present to the government strategies and policy alternatives through in-depth research on ‘when’ and ‘how’ unification would be achieved, and ‘what’ kinds of impact it would have, rather than ‘if’ it will happen. In this respect, this book is a summary of 7 studies conducted under the ‘Research Project on the Unified Korea and Northeast Asian Economic Cooperation’. Its main contents include analyses on the costs and benefits of the unification of Korea in the perspective of its four neighboring countries—US, China, Japan, and Russia; effects of inter-Korean economic integration in Korea’s perspective, and analysis of diplomatic/security benefits of unification. The world is now more interconnected than ever, and Korean unification will invariably impact its neighbors. In this regard, the cost-benefit analyses of the four countries are quite meaningful in that 12 overseas Korea specialists analyze the benefits of Korean unification and provide policy suggestions to maximize these benefits from the perspective of their own respective countries. In addition, the three research projects conducted by 11 domestic experts which provide advice on the effects of economic integration along with strategies for Northeast Asian cooperation based on their analysis on inter-Korean economic integration and diplomatic/security benefits of unification are also extremely valuable. The research projects conducted by researchers from 4 major countries present four unification scenarios-status-quo, North Korea’s reform and opening-up, absorption of the North by South Korea, and peaceful unification. In the case of peaceful unification, which is preferable to all parties involved, the US, China, Japan, and Russia will all witness an increase of $7.6 to 48.5 billion in their GDPs, and creation of 210,000 to 5,640,000 new jobs, resulting in positive ripple impacts for all 4 countries. According to the analyses, China will be the biggest benefactor of Korean unification, the US and Japan will reap similar benefits, and Russia will benefit the least. In the event of Korean unification, China’s three northeast provinces will become a vibrant logistics center and hub for the Eurasian Continent and the Pacific region. According to the study by Japanese researchers, a ‘Super Korea’ will emerge after Korean unification, rivaling Japan. The russian researchers analyzed that if energy exports increases; and the Siberian railway and gas pipeline were connected all the way to the Korean peninsula as a result of unification, it will lead to an economic boom in the Far East. Domestic researchers show that unification will bring changes in factors of production, market expansion, decrease in military spending, and improvement in international credit rating. According to their various unification scenarios, North and South Korea’s GDP growth rates will increase 16%p and 1%p respectively between 2016 and 2030. In the early stages of unification, independent currencies should be used but One Korea Indexed Unit of Account (OKU) must also be introduced; and in order to make use of North Korea’s human resources, disparity of wages between South and North Korea is unavoidable. They also analyze that a unified Korea will contribute to the resolution of the security dilemma in Northeast Asia by buffering the competition for economic and military hegemony between major powers such as the US vis-a-vis China and China vis-a-vis Japan, facilitating cooperation. Also, North Korea’s denuclearization alone will, in and of itself, significantly benefit neighboring countries.
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