Search

Begin New Search Publication Year within 5 Years

15961. Determinants of Korean Outward Foreign Direct Investment: How Do Korean Firms Respond to the Labor Costs of Host Countries?

Author:
Hanbyul Ryu and Young Sik Jeong
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Low cost of labor has been one of the major incentives that foreign firms invest in many developing countries. Yet, many developing countries including China and ASEAN have recently experienced a rapid increase in labor costs. Using the wage information provided by JETRO, this study examines how Korean FDI outflow is affected by the increase in labor costs of the manufacturing industry in host countries. The results indicate that the worker’s and engineer’s wages in Asian developing countries, who accumulated at least 3 and 5 years of work experience, have generally a negative impact on Korean FDI outflow. However, there exist positive relationships between the wages and FDI when the wages stay at very low levels. We do not find evidence that labor costs make a significant impact on Korean FDI outflow to European or Developed countries.
Topic:
Development, Foreign Direct Investment, and Labor Market
Political Geography:
China, Asia, and Korea

15962. Development of the Russian Far East in 20 Years of the Putin Era: Seeking New Directions for Deepening Cooperation between Korea and Russia

Author:
Joungho Park, Seok Hwan Kim, Boogyun Kang, Pavel A. Minakir, Artem G. Isaev, Anna B. Bardal, and Denis V. Suslov
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This study is the outcome of a joint research project commemorating the 15th anniversary of the establishment of the cooperative relationship between the Korea Institute for International Economic Policy (KIEP) and the Institute for Economic Research of the Far Eastern Branch of the Russian Academy of Sciences (ERI). As is well known, the year 2020 marks the 30th anniversary of diplomatic relations between Korea and Russia. Therefore, it is time for the two countries to prepare for the “2.0 Era of Korea-Russia Cooperation” while comprehensively evaluating existing achievements and tasks. In particular, in order to build a sustainable relationship between the two countries, it is necessary to establish a strategic contact point between Korea’s New Northern Policy and Russia’s New Eastern Policy, which can be realized through bilateral and multilateral cooperation in the Far East. In this regard, the main purpose of this study is to understand the main directions, key objectives, and political and economic implications of Russia’s policies in the Far East, which have been strategically pursued since the launch of Putin’s fourth term, and to explore new opportunities and possibilities for development cooperation in the Far East. We hope that this book will serve as a useful guide to open a new path for Far East development cooperation marking the 30th anniversary of Korea-Russia diplomatic relations.
Topic:
International Cooperation, Politics, Bilateral Relations, Economy, and Putin
Political Geography:
Russia, Asia, and Korea

15963. The Components of Free Trade Agreements and Their Effects on International Trade

Author:
Moonhee Cho, Young Gui Kim, Kyong Hyun Koo, Hyeri Park, and Hyeyoon Keum
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
We analyzes the effects that the components of FTA have on international trade. According to the empirical results, the more free trade agreements contain WTO+ and WTO-X provisions and the more legally enforceable these provisions are, the more bilateral trade increases. We also find that the effects of FTA's provisions on trade depend on the economic level of FTA partner countries.
Topic:
International Trade and Finance, Bilateral Relations, Free Trade, and WTO
Political Geography:
Global Focus

15964. Chinaʹs Startup Ecosystem Policy and Implications

Author:
Sangbaek Hyun, Hyojin Lee, Yunmi Oh, and Koun Cho
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The Chinese government is moving toward a qualitative growth model in the era of “New Normal,” transitioning from the existing quantitative growth model. In line with the transition, since 2015 the Chinese government has been implementing a strategy of “mass entrepreneurship and innovation,” which involves building a startup ecosystem in order to solve youth unemployment and create new growth engines. Thanks to the success story of China’s BAT (Baidu, Alibaba, Tencent) and these new policies by the Chinese government, the startup entrepreneurship boom in China has grown rapidly, together with an explosive expansion of infrastructure and platforms for startups. To determine whether China’s economy can be transformed into an innovative economy, we need to carefully examine and evaluate China’s strategy and status of developing the startup ecosystem.
Topic:
Entrepreneurship, Economic Growth, Unemployment, and Startup
Political Geography:
China and Asia

15965. The Networking Strategy of Contemporary Chinese Diplomacy

Author:
Jai Chul Heo
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
China is actively building Network Power in economic and traditional security and non-traditional security areas, while in some cases maximizing its own interests by using the Network Power already formed. In particular, China is building Collective Power at a rapid pace in significant areas. China also actively participated in existing networks and established Positional Power by preoccupying important positions. However, China’s Network Power still seems to have a long way to go in terms of Programming Power to build new systems, unlike Collective or Positional Power. What is notable in the process of analyzing China’s Network Power is that competition between the U.S. and China is fierce over Network Power.
Topic:
Security, Diplomacy, Economics, and Power Politics
Political Geography:
China, Asia, and United States of America

15966. Approaches to Labor Demand Forecast in Developing Economies and Their Implications for Korea's ODA

Author:
Young Ho Park, Yejin Kim, and Minji Jeong
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This study aims to develop systematic labor forecast methods, thereby contributing to increasing the efficiency of TVET ODA. This study suggests a new labor demand forecast methodology that combines quantitative and qualitative analyses and applies it to Vietnam, estimating labor demand by occupations in the country’s wireless communication equipment industry. This methodology starts with a statistical projection of Vietnam’s future labor market and industry. Subsequently, this study uses an enterprise survey and stakeholder interviews to complement missing information, as Vietnam's statistical system, like that of many other emerging economies, lacks some detailed data. Currently, the “element occupations” group takes the largest portion in the labor demand by industry and occupation. According to our results, however, the “plant and machine operators and assemblers” group is expected to gradually increase, thus becoming the largest occupation group in the wireless communication equipment industry in the near future. Given the various circumstances surrounding the labor market in developing countries, other alternatives in addition to our hybrid method of combining quantitative and qualitative analysis can also produce well-founded labor force projections. This study suggests analytical methodologies using global value chain (GVC) and big data as innovative alternatives, which can complement the shortcomings of traditional evaluation methods. ODA implementing agencies would benefit from paying attention to the labor forecasting methods presented in this research, and devising policies supporting these methods in order to properly apply them in reality.
Topic:
Communications, Labor Issues, and Economy
Political Geography:
Asia, Vietnam, and Korea

15967. Integrating Climate Change into Development Cooperation – Korea's Experience

Author:
Jione Jung and Jihei Song
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Korea has reached milestones in development cooperation over the past two decades. At the same time, it has sought for various measures to better incorporate climate consideration in its cooperation activities. However, a number of challenges remain and further action is required in improving the system and practices to better integrate climate change into Korea’s development cooperation. We aim at providing an overview of Korea’s progress in integrating climate change into its development cooperation to share the experiences and to highlight some achievements. In doing so, we first review how other developed countries have promoted climate change integration. Through comparison with Germany, the United States, and Switzerland, we summarized several achievements made by Korea in the area of development cooperation. In addition, we identified areas for further improvement to better integrate climate change into development cooperation, as well as projections for the next phase of Korea’s development cooperation to begin in 2021.
Topic:
Climate Change, Development, and International Cooperation
Political Geography:
Asia and Korea

15968. Foreign Aid to Fragile States: How Effective Does It Work?

Author:
Yul Kwon, Jisun Jeong, Yoon Sun Hur, Jihei Song, Aila Yoo, and Mi Lim Kim
Publication Date:
09-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Korea has put much effort into providing aid for fragile states in efficient and effective ways. As a part of such efforts, Korea established the Fragile States Assistance Strategy in 2017. However, there is still room for improvement in terms of the effectiveness of Korea’s Official Development Assistance (ODA) implementation under fragile and conflict-affected situations. Accordingly, the study aims to suggest policy suggestions for Korea’s development cooperation in fragile states by comparing and analyzing the current status, policies, and characteristics of aid to fragile states in major donor countries, including Germany, Australia, Denmark, and Japan. In addition, we review Korea’s case and draw following policy implications to tackle the remaining challenges. First, it is requisite for Korea to consolidate the whole-of-government approach and reciprocal coordination mechanisms to support for fragile states for overcoming fundamental causes of fragilites. Second, Korea should choose proper types of aid and sectoral aid allocation suitable for overcoming vulnerabilities and development challenges efficiently and effectively in fragile and conflict-affected states. Lastly, the Korean government should conduct a fragility analysis and manage projects systematically.
Topic:
Development, Foreign Aid, Fragile States, and Donors
Political Geography:
Asia and Korea

15969. The Way Forward for WTO Reform: Agricultural Subsidies and Special and Differential Treatments

Author:
Jin Kyo Suh, Ji Hyun Park, and Min-Sung Kim
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The multilateral trading system has been in crisis. The world economy has changed significantly since the WTO replaced the previous GATT system and new challenges are quickly piling on top of the old ones. The rising emerging countries and the relative decline of traditional economic members, together with the need to deal with complex new issues such as climate change and e-commerce and digital trade, are shaking the foundations on which the WTO was built some 25 years ago. There is also growing momentum among many WTO members to ‘modernize’ the WTO, including the Appellate Body although the details and feasibility of reform are unclear at this stage. In this perspective, we suggest some ideas on both trade-distorting farm subsidies and S&DT which are the two important issues in the WTO negotiations.
Topic:
Agriculture, Reform, Economy, Multilateralism, WTO, and Subsidies
Political Geography:
Global Focus

15970. How Chinese Local Governments are Expanding Foreign Economic Cooperation

Author:
Sanghun Lee, Hongwon Kim, Joohye Kim, Jiwon Choi, and Jaehee Choi
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
As the Chinese economy becomes more advanced and the internal and external economic environment surrounding China changes, so too does China’s strategy for external openness and economic cooperation. Accordingly, specific policies are diversifying from the past focus on manufacturing and foreign direct investment to services, overseas investment, bilateral and multilateral FTAs, and bilateral investment treaties (BITs). As the central government’s policy stance changes, China’s local governments are also promoting external openness and cooperation based on regional development stages, industrial structure, and regional development policies, reflecting the central government’s strategy. In particular, after the 19th Party Congress, the central government showed a strategic stance expanding external openness. In response, local governments have moved away from the traditional method of cooperation in the manufacturing sector centered on industrial complexes, and in recent years various cooperative methods have been promoted, including regional economic integration, service and investment, the use of FTAs, and innovations in institutions to expand external openness. Along with the shift in China’s foreign economic strategy, the economic cooperation environment surrounding Korea and China is changing as well, including the strengthening of protectionism, structural changes in the Chinese economy, the Korea-China FTA coming into effect, and the launch of follow-up negotiations. Therefore Korea needs to find new strategies and measures for economic cooperation with China, making it time to find new ways to expand cooperation with China’s central and local governments. Against this backdrop, this study aims to analyze the strategies, detailed policies and major cases of China’s central and local governments’ external openness and economic cooperation, and to draw policy implications for strengthening economic cooperation between Korea and China in the future.
Topic:
Government, Foreign Direct Investment, Economy, and Economic Cooperation
Political Geography:
China and Asia