Existing estimates of the costs of unification are inadequate for a number of reasons. In this paper we use a dynamic computable general equilibrium model to calculate South Korean and total peninsular income streams under a variety of unification (and non-unification) scenarios. We find that...

At the end of the twentieth century, the People's Republic of China faces stark trade policy choices. Market reforms implemented since 1978 have brought commercial strength and bright expectations for future prosperity. However, they have also brought China to the point where trading partners...

Financial systems in many developing countries are said to be "financially repressed". The government intervenes heavily in the economy, segmenting financial markets, placing artificial ceilings on interest rates, and directly allocating credit among enterprises as it sees fit. The likely result...

This paper presents empirical evidence for Taiwan and Korea bearing on whether outward foreign direct investment (FDI) and international trade of these nations are substitutes or complements, i.e., whether a greater stock of FDI held by a nation is associated with decreases or increases of its...

In this paper we use a multi-region computable general equilibrium model to analyze the impact of the Asian crisis thus far, highlighting the implications of possible future developments in Japan and China. The main conclusion is that depreciation of the yen would tend to have an adverse impact...

Barring a second war on the Korean peninsula, Korean economic integration will occur, be it through successful economic reform and opening in the North, collapse and absorption along the lines of the German case, or a period of "muddling through" in which the North Korean government makes...

In an October 1992 speech, then-Presidential candidate Bill Clinton announced his support for the North American Free Trade Agreement (NAFTA), but stressed the need for supplemental agreements on environmental and labor issues. Clinton's inauguration in January 1993 propelled new negotiations...

Despite an erosion of consensus on its benefits, capital account convertibility remains a long-term goal of China. This paper identifies three major preconditions for convertibility in China: a strong domestic banking system, relatively developed domestic financial markets, and an equilibrium...

Since the asset-price bubble burst in 1990, the Japanese government has repeatedly announced fiscal measures to boost the economy. The government claims that discretionary fiscal spending from fiscal year 1992 to 1996 (although there was no stimulus measure in 1996) amounted to more than 65...

For North Korea, product market integration would generate large welfare gains, sufficient to end the famine. Additional gains could be had through military demobilization. For the South, the impact of product market integration would be trivial, but the impact of factor market integration would...