This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research
Volume Title: Macroeconomic Linkage: Savings, Exchange Rates, and Capital Flows, NBER-EASE Volume 3
Volume Author/Editor: Takatoshi Ito and Anne Krueger, editors
Volume Publisher: University of Chicago Press
Volume ISBN: 0-226-38669-4
Volume URL: http://www.nber.org/books/ito_94-1
Conference Date: June 17-19, 1992
Publication Date: January 1994
Chapter Title: List of Contributors, Indexes
Chapter Author: Takatoshi Ito, Anne O. Krueger
Chapter URL: http://www.nber.org/chapters/c8540
Chapter pages in book: (p. 389 - 402) Contributors
Kazumi Asako Shin-ichi Fukuda Faculty of Economics The Institute of Economic Research Yokohama National University Hitotsubashi University 156 Tokiwadai Hodogaya-ku 2-1 Naka Kunitachi Yokohama 240 Tokyo 186 Japan Japan
Serguey Braguinsky Hideki Funatsu Department of Economics and Business Otaru University of Commerce Administration Otaru 047 Yokohama City University Japan 22-2 Seto, Kanazawa-ku Yokohama 236 Maria S. Gochoco Japan School of Economics University of the Philippines Pochih Chen Diliman Department of Economics Quezon City 1101 National Taiwan University The Philippines 3004 21 Hsu-Chou Road Taipei 10020, Taiwan Junichi Goto The Republic of China Research Institute for Economics and Business Administration Cheng-Chung Chu Kobe University Taiwan Institute of Economic Research 2- 1 Rokkodai-cho 178 Nanking E. Rd. Sec 2 Nada-ku, Kobe 657 Taipei, Taiwan Japan The Republic of China Koichi Hamada Jeffrey A. Frankel Economic Growth Center Department of Economics Yale University 797 Evans Hall 27 Hillhouse Avenue University of California New Haven, CT 06520 Berkeley, CA 94720
389 390 Contributors
John E Helliwell Kazuo Nishimura Department of Economics Institute of Economic Research University of British Columbia Kyoto University 1873 East Mall Sakyo-ku Vancouver BC V6T 1W5 Kyoto 606 Japan Takatoshi Ito Hitotsubashi University Michihiro Ohyama Kunitachi, Tokyo 186 Department of Economics Japan Keio University 2-15-45 Mita, Minato-ku, Sung Hee Jwa Tokyo 108 Korea Development Institute Japan P.O. Box 113, Chungnyang Seoul 130-012 Yoshiyasu Ono Korea Institute of Social and Economic Research Bon Ho Koo Osaka University Department of Economics Mihogaoka, Ibaraki Hanyang University Osaka 567 17, Haengdang-Dong, Sungdong-Gu Japan Seoul 133-791. Korea Won-Am Park Anne 0. Krueger Korea Development Institute Department of Economics P.O. Box 113, Chungnyang Stanford University Seoul 130-012 Stanford, CA 94305-6072 Korea Jin-Lung Lin San Gee Institute of Economics Graduate Institute of Industrial Academia Sinica Economics Nankang, Taipei, Taiwan National Central University Republic China of Chung-li, Taiwan Republic of China Bih Jane Liu Department of Economics National Taiwan University Masao Satake 21 Hsu-Chou Road Otaru University of Commerce Taipei 10020, Taiwan Otaru 047 The Republic of China Japan
Rachel McCulloch Chi Schive Department of Economics National Taiwan University Brandeis University 21 Hsu-Chou Road Waltham, MA 02254 Taipei 10020, Taiwan The Republic of China Chong-Hyun Nam Department of Economics Toshiaki Tachibanaki Korea University Kyoto Institute of Economic Research 1,5-Ga, Anam-dong, Sungbuk-ku Kyoto University Seoul 136-70 1 Yoshida-honmachi, Sakyo-ku, Kyoto 606 Korea Japan 391 Contributors
Hiroo Taguchi Chung-Shu Wu Institute of Monetary and Economic Research Fellow Studies The Institute of Economics Bank of Japan Academia Sinica Hongoku-cho Nihonbashi Chuo-ku Nankang, Taipei, Taiwan Tokyo 103 Republic of China Japan Naohiro Yashiro Kazuo Ueda Sophia University and Japan Center for Department of Economics Economic Research University of Tokyo 2-6-1, Kayabacho, Nihonbashi Bunkyo-ku Chuo-ku, Tokyo 103 Tokyo 113 Japan Japan
Shang-Jin Wei Kennedy School of Government 79 JFK Street Harvard University Cambridge, MA 02138 This Page Intentionally Left Blank Author Index
Abramovitz, Moses, 22n21 Caves, Richard, 234,239 Abrams, Richard, 319 Chang, Winston W., 119 Adelman, I., 364 Chen, Pochih, 227,229, 231,232,234,237t Akhtar, M. Akbar, 3 I8n20 Chiu, P. C. H., 187nl Anderson, James, 314n13 Choudhri, E. V., 185 Anderson, Kym, 3131110 Chung,Alan, 9n3, lOnn4,5,21,22n21,292nI Anne, Z., 65n2 Collins, Susan M., 64, 168111, 175,324 Aoki, A,, 377 Corbo, V., 68 Arriagada, M. M., 26t Asako, K., 279n6 Day, Richard H.,203 Aschauer, David, 212 Dean, Andrew, 172, 176n5 Deardorff, Alan, 3141113 Balassa, Bela, 65, 81, 234, 323n24, 324 De Grauwe, Paul, 318,351n3 Baldwin, Richard, 78,79,248 Dekle, Robert, 74 Bank for International Settlements (BIS), 343t Dixit, Avinash, 247 Bank of Japan, 37n5,39,41 Dornbusch, R., 65,247,248,252,253118, Barro, R. J., 22-23n21 296n1.312 Baumol, W. J., 22n21 Dowrick, S., 22n21,23 Benhabib, Jess, 203 Drysdale, Peter, 313n10, 387 Bera, A. K., 192 Durand, Martine, 172, 176n5 Berner, Richard B., 168111 Durbin, J., 85 Black, Fischer, 221 Durlauf, S. N., 190113 Black, Stanley W., 342 Blanchard, Olivier, 207 Easterly, W., 23 Bollen, K. A,, 16 Edwards, Sebastian, 145 Boone, Peter, 71n4 Engle, R. F., 190, 224111 Bordo, M. D., 185 Evans, J. M., 85 Boyer, Russell S., 212 Brada, Josef, 319 Fallon, John, 172, 176x15 Brander, J. A,, 23 Feenstra, Robelt C., 247,248 Brock, William A., 215, 220,224 Feldstein, Martin, 169n2 Brown, R. L., 85 Fischer, Bernhard, 135 Bulow, Jeremy I., 25111.5 Fischer, S., 211120 Burger, A., 185 Fisher, Eric, 247,248
393 394 Author Index
Frankel, Jeffrey, 71,73,74,82, 142n3, 169n2, Ito, Takatoshi, 36nn3,4 134, 135, 142n3, 143, 204,221,234,239,296n2,297,299n.5, 204,224n1.311118 301,305,310n7,311n8,312n9,313n10, Itoh, M., 273n1 314,315,318,323,347,350,351t, 360, 368,383,388 Jamison, D., 26t Friedman, Milton, 214 Jarque, C. M., 192 Root, Kenneth, 204,221,247 Johansen, S., 188, 190, 191, 192 Fujii, Mariko, 32nl Jones, R. W., 234,239 Fukao, Mitsuhiro, 133, 134, 135 Juselius, K., 188, 192 Fukuda, Shin-ichi, 203, 205, 207, 212, 215, Jwa Sung Hee, 138111 219,377,379,383 Kahn, Charles M., 207 Gamaut, Ross, 313n10.387 Kask, C., 70t Geanokoplos, John D., 25 In5 Kaufman, I., 364 Gemmell, S., 22n21 Kawai, Masaluro, 336111 Glassman, Debra, 321n22 Kenen, Peter B., 84.3181120 Goto, Junichi, 382t Khan, Mohsin S., 145 Grandmont, Jean-Michel, 203,207 Khosla, Anil, 253 Granger, C. W. J., 189, 190 Kim, Kihwan, 324 Greenwood, Jeremy, 212 Kmbrough, Kent P., 274112 Gros, Daniel, 140, 1551112 Kim, Jae-Cheal, 119 Grossman, G. M., 9n2, 10 Kim, Kwang-Suk, 70,71t Gylfason, T., 211120 Kim, Kyung-Hwan, 77n5 King, Robert G., 204 Hamada, Koichi, 212,377,379, 383 Klemperer, Paul D., 247,25 1n5 Hamilton, Carl, 313nll,315n14,317n19 Kmenta, Jan, 256 Hanson, James A,, 135, 154 better, Michael M., 247, 253n10 Haque, Nadeem U., 145, 147t Kohlhagen, Steven, 3 181120 Harada, Yuzo, 37115, 39,40,41,49t Krueger, A. 0..90,99 Harrison, A,, 23 Krugman, Paul, 69.78.79, 81, 247, 248, 311, Helliwell, J. E, 9n3, 10~4,5,16n12, 21, 314,316 22n21,23,292n1 Kwan, C. H., 297n3 Helpman, Elhanan, 9n2, lO,212,314n13,376 Kyle, Albert, 221 Heston, Alan, 8nl Hill, P., 21 Lau, L., 26t Hilton, Spence, 3 181120 Learner, E. E., 196n7 Himarios, D., 90,99 LeBaron, Blake, 215,220,224 Hirata, A., 369, 372 Lee, H. C., 23 1 Hoeller, Peter, 172, 176115 Lee, Young Ki, 70 Hooper, Peter, 253, 3 18n20 Levine, R., 22n21 Horioka, Charles, 169n2 Lindner, Deborah, 324n25 Hou, T. C., 187111 Lin Wen-Lin, 224111 Hsieh, David A,, 215,220, 224 Louat, F., 26t Huntington, S. P., 21 Lowell, Julia, 297n4 Hwang, Eui-Gak, 324 Lucas, R. E., 9112,212,376
Ikawa, Norimichi, 37115, 39,40, 41,49t McCulloch, Rachel, 172f lkeda, Shinsuke, 274n2 McKinnon, Ronald, 377,383 I1 SaKong, 65 Mahalanobis, P. C., 364 Ingram, J. C., 377,381,383 Mancera, Miguel, 296nl Inkeles, A., 161111, 21 Mankiw, N. Gregory, 8.9, 10,22-23n21 International Monetary Fund (IMF), 167, 169, Mann, Catherine, 79, 247,253 174,3181120,344t Marston, Richard 36n3 395 Author Index
Massidon, A,, 221121 Rogoff, Kenneth, 215,219 Matsuyama, Kiminori, 203, 219 Roley, V. V., 204 May, Robert, 223 Romer, D., 8.9 Meese, Richard, 215,219 Romer, P. M., 9112 Mendez, Jose, 319 Roubini, N., 60 Messmore, Lauren B., 281 Rousseeuw, P., 364 Miles, M. A,, 90 Modigliani, Franco, 169, 17 In2 Sachs, Jeffrey, 60, 71n4 Moffett, Michael H., 247, 253 Saini, K. G., 185 Montiel, Peter, 145, 147t Salou, Gerard, 10114 Morris, C. T., 364 Sargen, Nicholas P., 168111 Mundell, Robert, 357,360,376,383 Schive, Chi, 229, 232, 234, 237t, 241 Murray, Alan, 171 Schott, Jeffrey, 3 13t Muscatelli, V. A,, 78 Shih, Yen, 187111 Sirowy, L., 16nll,21 Nakamura, T., 384t Solomon, Robert, 167, 176116 Nam Sang-Woo, 68,70 Solow, Robert, 8 Naya, S., 376 Srinivasen, T. G., 78 Neef, A,, 70t Stock, J. H., 190113 Nishimura, Kazuo, 203, 204 Stone, R., 364 Noland, Marcus, 3231124 Sturm, Peter, 10n4 Norheim, Hege, 3131110 Stutzer, Michael J., 203 Suh, S. H., 77115 Ohno, Ken-ichi, 36113 Summers, Robert, 8nl Ohyama Michihiro, 204 Sutch, Richard, 169, 171112 Ono, Y., 273n1,274n2 Suzuki, Yoshio, 310117 Organization for Economic Cooperation and Development (OECD), 126, 134, 135, Taguchi, Hiroo, 336111 158n13 Ozeki, Yuzuru, 308,31Ot, 311n8,336n1,337t, Takagi. Shinji, 297114 339t. 342 Takeda, Masahiko, 336n1 Tambunlertchai, Somsak, 347t Pangestu, Mari, 347t Tavlas, George, 308, 310t, 311118, 336111, Park, J., 190n3 337t, 339t, 342 Park, Yung Chui, 65,71,297n3 Teranishi, Juro, 253 Park, Won-Am, 64,71,77n6,297n3,324 Toyo, Keizai Shinpo, 49t Perry, G., 185 Trotsenburg, Axel van, 297113 Turner, Philip, 336111 Petri, Peter, 172f, 179n8.313n10, 316 Phillips, P. C. B., 189, 190113 Turnovsky, Stephen J., 212 Plummer, M., 376 Poole, W., 377 Ueda, Kazuo, 32nl,60,79 Psacharopolous, G., 26t United Nations, 178, 179 U.S. Department of the Treasury, 324 Quandt, Richard E., 85 Uzawa, Hirofumi, 275114 Quliaris, S., 190n3 Vines, D., 78 Ramstetter, Eric D., 347t Razin, Assaf, 376 Wallace, Neil, 204 Reisen, Helmut, 70, 135, 145, 147t, 148, Wang, Zhen Kun, 313nll,315n14, 297113 3 17nn 18,19,324n25 Renelt, D., 22n21 Watson, M., 190113 Riedel, J., 78 Weber, Warren E., 204 Rodrik, Dani, 168n1, 175.3181120 Wei, Shang-Jin, 204, 318, 3211122 396 Author Index
Weil, D., 8, 9 Wu, C. S., 185, 187nl Weiss, A. A,, 190 Wu, Chung Chi, 232,234,237t Wells, Louis T., 178117, 179 Williamson, John, 65, 81, 323n24.324 Yamazawa, I., 369,372,373t, 373 Winters, L. Alan, 313nll,315n14,317n19 Yano, Makoto, 204 Wolff, E. N., 22n21 Yeches, H., 70, 145, 147t, 148 Wonnacott, Ronald J., 255x112 Yokota, K., 369,372 Wonnacott, Thomas H., 2551112 Yo0 Jung-ho, 70 Woodford, Michael, 203nl.204.214 Yoshikawa, Hiroshi, 421110, 120 World Bank, 12t, 14n10, 16, 17n14, 18 Yu, Z. S., 185 Subject Index
ASEAN Free Trade Area (proposed), 317 124-26; intercountry comparison of Asia Pacific Economic Cooperation (APEC), openness, 140-54; interpretation of Japa- 317-18,325,359 nese data for, 37-39; movements of Jap- Association of Southeast Asian Nations anese, 32; openness of, 140; openness of (ASEAN), 312,317 Japan’s, 142; openness of Korea’s, 142, 157-58; prerequisites for liberalization, I C? 1JI Baht (Thailand), 307-8 Capital controls: with financial liberalization, Balance of payments: analysis of Korea’s, 135-36; impediments in Korea to dereg- 77-81; bilateral by region (1986-91), ulation of, 136; influences in OECD 36-37; effect of exchange rates on Ko- countries on, 126; Japan, 133-34, 135; rea’s, 77-81; effect on capital controls, Korean liberalization of, 124; OECD 164-65; factors influencing, interpre- 51; countries’ liberalization of, 135; patterns tation of Japanese data for, 37-39; rela- of Korean, 126-35 tion to REER of Taiwan’s, 101-5; surplus Capital flows: with black market exchange pre- and deficit in Taiwan’s, 228,245-46; of mium, 17-18, 19f; comparison of Asian Taiwan based on REERs, 99-107; of developing country, 140-42; features of Taiwan under different exchange-rate world and developing nation, 168-70 regimes, 121. See also Capital account; gross flow index concept, 154-56; inflow Current account and outflow of Japan’s, 48,51-52; inflow Bank for International Settlements (BIS), 170 and outflow of Korea’s, 124, 126, 127, Banking system: international credit stan- 135; nations with large inflows, 171-74; dards, 170-71; Korea, 132, 136-38 in open capital account, 140; openness of Base1 standard of capital adequacy, 170 Korea’s, 155 Bollen index of democracy, 16, 17f, 21 Capital intensity: industries in Taiwan with Budget deficit: effect on national savings, 60; low and high, 241; products with high Korea, 68 and low, 4, 232,237,239 Business sector, Korea, 138, 157 Clark hypothesis,__ 231 Commodities classification: according to fac- Canada-US. Free Trade Agreement, 295, 316 tor input intensity, 232-34; according to Capital: conditions related to shortage, stages of fabrication or use, 234-36 167-68; implications of scarce, 180; pos- Comparative advantage: for nations with sibility of shortage, 182 human-capital-intensive products, 241 ; Capital account: development of Korea’s, Taiwan, 4
397 398 Subject Index
Comparative growth model: Asian and OECD adjustment model, 280; for relation of nations, 11-16; with conditional conver- money, output, exchange rate, and price, gence, 8-1 1 192 Competitiveness: decline of Taiwan’s interna- Debt, external: effect of Korea’s 127, 131t; tional, 229; human capital as factor in Tai- Korean current account surplus to lower, wan’s, 24 l ; Korean, 54,70, 80; of Tai- 132; yen- and dollar-denominated, wan’s external trade, 96-98, 107-14 338-39 Conditional convergence: in Asian economies, Deutsche mark: in European Monetary Sys- 8-1 1.28-29; in global economy, 10-1 1; tem, 348; as international currency, 355 in OECD country growth, 10; in steady- Dollar (U.S.): in East Asian currency baskets, state growth paths, 8-9 297-308,321,325,329-30 external debt Consumer prices, EC and East Asian nations, denominated in, 338-39; as international 364-66 currency, 325-26,355; post-Plaza Ac- Cost externality model: comments on, 266; cord depreciation, 53; role in Asian econ- definitions, 248-53; specifications, 253- omies, 345, 354; role in Asian exchange 56,266 rate policy, 297; trade denominated in, Credit system: international, 170-7 1, 180-8 1, 308-1 1; transactions on foreign exchange 182; Korea, 66-68 markets, 340-42 Currencies: internationalization of a single cur- rency, 355-56; as nominal anchor, 348; EAEC. See East Asian Economic Caucus pegging of Asian, 297; value in relation (EAEC) to US. dollar, 89. See also Deutsche East Asian Economic Caucus (EAEC), pro- mark; Dollar (US.); Yen posed, 316,317-18 Currency appreciation: of East Asian, 11 1; of Economic growth: actual and predicted European, 89,93,99, 110, 113; of Japa- OECD and Asian nation, 11-16; differ- nese yen, 35.53, 86,245; of Korean ences in Asian economies, 16-22; in East won, 133, 139; of NT dollar, 89,96,98, Asian countries, 362-63; factors in rates 113,228-31, 243,245; as policy tool, of, 8; relation to openness, 16-22.23, 45-48 29; relation to political democracy, 15- Currency areas: conditions for Asian nation, 16, 17f, 21. See also Comparative growth 376-82; integration of, 295-96; optimum model; Conditional convergence (Mundell), 357, 360, 376; probability of Economic performance, East Asian countries, Asian, 296 361-63 Currency baskets: Asian currency links to, Economic policy, Korea, 123-24 348; Korea’s double-basket system, 139; Energy intensive products, 233-34, 237, 239 pegging of Asian currencies to, 297; European Community (EC): trading bloc like- weights assigned to components of, 297- lihood, 295, 316,318 308,321,325,329-30 European Monetary System (EMS), 348,353, Current account: comparison of Korea with Ja- 355 pan and Taiwan, 54-64; composition of, Exchange rate markets: black market, 17-20; 83-84; factors influencing Japan’s, 39- dynamic, 220-24; yen transactions on, 45.48; factors influencing Taiwan’s, 58, 340-42 62f; fiscal policy impact on Japan’s, 68; Exchange rate pass-throughs: cost externality levels in Korea, 53-54, 65, 8 1; move- effect on, 248.261-64,268-69; incom- ments of Japanese, 31, 35-37; response plete (illustrated), 268, 269; in input and in Korea to surplus, 64-67; savings and output prices, 336-37; occurrences of investment effect: Japan, Korea, Taiwan, over, incomplete, and negative, 257,259; 58-60,61f, 62f, 63f ratios by product and country, 257-58; CUSUM test/CUSUM square test, 85 testing for elasticity of determinants, 266-67. See also Cost externality model Data sources: for capital movements in Japan, Exchange rate regimes: cycles in flexible, 37-39; for exchange-rate pass-through 206-8; dynamic paths under flexible, analysis, 355-56; for inventory- 204,206-7.215; fixed in currency union, 399 Subject Index
378; floating with autonomy, 378; Korea, Gold investment accounts, Japan, 39-40,48 139, 157; optimal choice of, 212-13, Government intervention: Korea, 123, 138, 214-15 140, 157; in Taiwan financial markets, Exchange rates: effect on country’s export or 227. See also Balance of payments; Capi- import value, 119-20; effect on Japan’s tal controls; Exchange rate regimes; Mon- current account, 42-45; fluctuations of etary policy; Protectionism; Quotas; Asian country in relation to dollar, Tariffs 348-49; incomplete pass-through, Granger Representation Theorem, 190 247-48; influence on capital flows, Gravity model, 3 13-1 8 133-34; inserting chaos in model of, Gross domestic product (GDP), EC and East 220-2 1; Korean export pass-through rate, Asian nations, 364-66 79-80; in relation to money supply and Gulf War effects, 40-41,42-43 inflation, 187. See also Current account; Price-competition index (PCI); Yeddol- Hong Kong dollar, 301 lar exchange rate Human capital (in economic growth), 8-9 Export-drive hypothesis: defined, 4,290, Human capital intensity: industries in Taiwan 291-92; for inventory adjustment, with high and low, 241; products with 278-79; inventory and factor adjustment high and low, 232-33,237,239,241 costs with, 291-93 Exports: with appreciation of NT dollar, Imports: Japan, 41-45; Korea, 55-58,77-81 93-94; choice of currency for invoicing, Import substitution, Taiwan, 91.94, 107 336-37; correlation with inventories, Inflation, Korea, 123, 140 275, 287,290, 291-92; Japan, 41-45; Ko- Inflation rates: industrial and Asian econo- rea, 55-58, 77-81; restriction with tariffs mies, 342,344; LDC and East Asian and quotas, 28 1-85; with undervalued countries, 362-63 NT dollar, 93-94 Interest rates: comparison of differentials, Export structure: Japan, 237-40,244,245; Tai- 142-45; comparison of EC and East wan, 94-96,98,231-36,240-41. Asian nations, 364-66; domestic and in- 243-45; United States, 237-40,244,245 ternational linkages, 145-54; with mone- tary expansion in Korea, 66-67; regula- Factors of production, Taiwan, 231-34 tion and liberalization in Korea, 136-38, Financial sector: Japan: money markets, 345; 140, 157 Korea’s liberalization of, 123-24, 132, Inventories: correlation with exports, 287, 138; sequencing of liberalization in, 290, 291-92; effect of tariffs and quotas 135-36 on, 273-74; export-drive hypothesis for Fiscal policy: effect of Korea’s expansive, 68; adjustment of, 278-79 effect on current account surpluses, 63; Inventory-adjustment model: analysis of, Japan, 59-60. See also Savings 280-81; firm, 275-76; industry, 276-77 Foreign direct investment (FDI):effect of Investment: comparison of EC and East Asian scarce capital on, 180; function of, nations, 364-66; domestic Taiwan, 229; 177-78; of Japan in Asian economies, in East Asian countries, 175-76,362-63; 345-46; of Japan in Taiwan, 119; of Korea, 71-72; private and government in Japan in United States, 31; Korean regu- Korea, 58,60f; private and government latory changes in controls, 159; liberali- in Taiwan, 58.62f. See also Foreign zation of OECD countries, 135-36; liber- direct investment (FDI); Investment alization in Korea, 136; of NIEs and overseas ASEAN countries, 346-47; as source of Investment overseas: effect of scarce capital capital inflow in Korea, 124, 126, 127, on, 180; by Japanese and Asian NICs, 135, 142; of Taiwan, 95-96; trends in, 3 1-32, 178-79; Korean regulatory 175-76, 178-79 changes for domestic, 159-61; Korean Free trade area (FTA): conditions for Asian na- regulatory changes for portfolio, 161-62; tion, 368-76; proposed Asian nation, 359 as outflow of Korean capital, 126. See Friedman’s rule, 214-15 also Foreign direct investment (FDI) 400 Subject Index
Knowledge transfers (in conditional conver- Population growth, 8 gence), 10 Portfolio investment: in Japan, 34; of Japan in United States, 31; Korea, 126, 135, 136, Labor costs: Korea, 68-70; Taiwan, 229-31, 142; Korea’s regulatory changes in for- 243 eign, 159 Labor-intensive products, 4,232-33,237,239 Price-competition index (PCI): defined, Likelihood ratio test: comments on use of, 85; 107-8; between Taiwan and major trad- for relation of money, output, exchange ing partners, 108-17 rate, and price, 19 1 Price levels: alignment in currency union, 378; Japan: land and stock, 41; Korea: Macroeconomic policy, Taiwan (1980-85). land and stock, 73-77; maintenance in 227 Korea of stability, 66; stability in East Macroeconomic variable confluence, East Asian countries, 362-63 Asian, 363-68 Private sector, Korea, 123, 157 Manufacturing sector, Taiwan: changes in, Protectionism: as aid to economic growth, 29; 229, 231, 243-44; classification of, 241 conditions for and effect of U.S., 89,94, Maximum likelihood cointegration analysis, 98, 113; in East Asian countries, 374-76 189-98,200 Monetary policy, Korea: to control inflation, Quotas: inventory adjustment with, 273-74; to 140; proposed changes in, 157-58; in re- reduce trade deficit, 285-86,287-89; to sponse to current account surplus, 64-72; restrict home country exports, 28 1-86 to sterilize current account, 132. See also Balance of payments; Capital account; Real effective exchange rates (REERs): ap- Capital controls; Capital flows; Interest preciation of Japanese, 69; appreciation rates of Korean and Taiwanese, 69; effect on Money supply: comparison between EC and trade of Taiwan’s, 99-107 East Asian countries, 364-66; control of Regional integration. See Currency areas; Free Korea’s, 140; effect of fiscal expansion trade area (FTA); Trade blocs; Yen bloc on Korea’s, 68; under fixed and flexible Ringgit (Malaysia), 303-4 exchange rate regimes, 212-13; growth Rupiah (Indonesia), 304-5 of Korea’s, 66-67 Multinational firms, Taiwanese, 234 Savings: decline in national, 171-74; in- Mundell-Fleming model, 60, 62, 79, 8 1, 2 12 creased demand for, 175, 182-83; Korea, 58, 60f, 64;nations with high rates of do- New Taiwan (NT) dollar: appreciation of, 89, mestic, 174, 182-83; private and govern- 96,98, 113,228-31; effect on price- ment, 58,60f, 61-64; in Taiwan, 58,62f, competition index, 108; estimated 63-64 weights in currency basket, 301-3; real Singapore dollar, 300-301 value of, 99-107 Stock market, Korea, 126 Nominal effective exchange rate (NEER), NT dollar, 90-9 1.99-1 00 Tariffs: East Asian nations, 374-76; economic Nontariff barriers (NTBs): East Asian country, growth with import, 118, 20; inventory 376; as measure of openness, 17, 19f adjustment with, 273-74; to reduce trade deficit, 285-86; to restrict home country Oil price shocks, 55-56, 123 exports, 281-85 Open market operation, proposed Korean, 140 Trade blocs: Canadian-U.S. Free Trade Area/ Openness, economic: as aid to economic Western Hemisphere, 295, 316, 318; de- growth, 29; measurement of capital ac- fined 31 1-12; European Community count, 145-54; relation to economic (EC), 295,316, 318; hypothetical Japa- growth, 16-22,23; of Taiwan, 229 nese formation of, 312 Trade dependence indices, 372,374 PCI. See Price-competition index (PCI) Trade flows: capital flows as percent of Ko- Peso (Philippines), 306 rea’s, 140-42; Japan, 35-37; between Tai- 401 Subject Index
wan and Europe, 96-1 11 ; of Taiwan current-account surpluses, 174; role in based on REER, 99-107 proposed Asian free trade area, 359-60 Trade flows, bilateral: with bilateral exchange rate variation, 318-23, 325; gravity Won (Korea): appreciation of, 133, 136; esti- model to measure, 313-18; Japan, 36-37; mated weights in currency basket, 298- Taiwan and foreign countries, 107-12; be- 300; U.S. negotiations related to, 323-25 tween Taiwan and Japan, ll1-12, 122; between Taiwan and United States, 93- Yen: appreciation, 45-48,53, 86; Asian coun- 96, 111 try linkage with, 308; depreciation, 51, Trade flows, intraregional: East Asian, 312- 52; increased international use of, 19,315-17.347-48; EC and Western 342-45; as nominal anchor, 345-53; as Hemisphere, 316; trade bias index, potential anchor for Asian countries, 347-48; world, 315-16 353-54, 356-57; as potential interna- Trade intensity indices: of Asian and EC tional currency, 323,356; as a reserve cur- nations (1990), 369-71; Asian nations rency, 339-40; role in Asian exchange (1980 and 1987). 372-73; See also Trade rate policy, 297; trade denominated in, dependence indices 308, 310t; transactions on foreign ex- Trade policy: Korea, 70-71; liberalization of change markets, 340-42; use in inter- Korean, 132-33. See also Exchange rate national finance, 338-42; use in invoice regime; Protectionism; Quotas; Tariffs lending and trade, 308,335-37 Trade structure: comparison of Taiwan, Japan, Yen bloc: connotations of, 296; hypothesis for, and U.S., 236-40; Taiwan, 231-36.243. 296 See also Exports; Export structure YedDollar Agreement (1984), 323 Yeddollar exchange rate: influence on Japan’s United States: pressure on East Asian NICs, current account, 42-45; response of ex- 323; pressure on Japan, 165; pressure ports and imports to, 46-48 on Korea, 65, 82, 139, 157; pressure on Yuan (China), 308-9 Taiwan, 227,243; pressure to reduce