A Study on Inclusive Growth on APEC Economies: Focusing on Small and Medium-sized Enterprises (SMEs)

김다솜(Dasom Kim),구선미(Sunmi Koo),홍혜기(Haegi Hong) 한국APEC학회 2020 Journal of APEC Studies Vol.12 No.2

The latest development model, known as “inclusive growth,” is a practical solution to current issues: wealth gap, income inequality, severe environmental pollution, and waste of resources. APEC promotes inclusive growth with different initiatives and frameworks to strike a balance between economic and sustainable development. This paper explores and examines SMEs as potential sources for APEC member economies’ inclusive growth as SMEs contribute about 20 percent to 50 percent of GDP in most APEC economies. However, SMEs only account for 35 percent or less of direct exports. This shows that there is some room for improvement in SME’s contribution to international trade. In this regard, SMEs have been APEC’s focus for inclusive growth with advancing youth and women’s engagement to economic activity. Youth has been a significant part of APEC’s agenda since 1998. Women have been listed as an important agenda in APEC since 1999 and listed as one of four priority areas of APEC in 2019. Youth and women are often referred to as economically vulnerable groups. However, if they are empowered with adequate policies and practices, they can generate individual income and develop successful small and mediumsized businesses. In this regard, we examine definitions and current status of SMEs in APEC member economies, explore good policies and practices regarding the subject and provide recommendations for future policies and practices for these cross-cutting issues in APEC.

TPP: Complement or Substitute to APEC

Hae-Du Hwang,Sung-Chul Bang 한국APEC학회 2016 Journal of APEC Studies Vol.8 No.1

Given the political and economic rivalry between key nations of the Trans Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP), a unifying free trade agreement such as the Free Trade Area of Asia-Pacific (FTAAP) agreement envisioned and pursued by APEC leaders faces steep hurdles. South Korea, a founding member of APEC, key ASEAN trading partner and RCEP lead negotiator, now considers whether to join the TPP. In light of South Korea’s APEC participation and its standing FTAs with all but two TPP nations, it is convenient to view the TPP agreement as complementary to Korea’s current trade agreements incubated via APEC and the APEC approach in general. The authors contend that the TPP is more akin to a substitute for the APEC approach. Acceding to the TPP for South Korea may possibly impede more flexible unilateral and preferential liberalization arrangements due to its stringent requirements and its water-tight-compartment-type demands for the fortified regulatory coherency. The paper considers how a “mega regional trade agreement such as the TPP will change current patterns of multi-track trade policy given that much of the multilateral TPP Agreement eclipses previous liberalization attempts initiated by the WTO and the OECD. Given potential conflicts between the TPP and RCEP programs, the authors recommend that Korea adopt a prudent approach to accession into the TPP and instead endeavor to make further progress on inter-regional cooperation between Northeast Asia and Europe.

Science Diplomacy and APEC STI (Science, Technology and Innovation) Cooperation

Woosung Lee 한국APEC학회 2018 Journal of APEC Studies Vol.10 No.2

September 25 (2015). 193 governments took the historic step of adopting the 2030 Agenda and the Sustainable Development Goals (SDGs) at the UN Sustainable Development Summit. As countries came together with the goal of taking the world on a more sustainable pathway, it also became evermore clear the critical role of science, technology and innovation (STI) as a means of tackling some of the most pressing global issues in unconventional, cross-cutting ways. Among many of those global issues, historically as well as within the SDGs framework, climate change proves to be one of the direst issues needed to be tackled, especially through STI.Given the rapidly expanding impacts of climate change and hazardous weather activities, especially in the APEC region, economies are now in need of climate technologies that will allow more accurate and effective climate assessment and forecasting. In addition, given the exploitation of natural resources, the degradation of the environment and its resulting climate impacts, economies are in dire need of clean technology solutions and investments in sectors such as renewable energy, clean water and climate smart agriculture. Against such backdrop, it is imperative that APEC economies come together and continue their efforts on addressing climate change. And it is within such context in which the APEC Research and Technology (ART) Program, which is longstanding Korean initiative for APEC policy dialogue, plays a critical role. As one of the most effective policy dialogue platforms of PPSTI, the ART program has sought to address ways for APEC to facilitate cooperation on climate technology and SDGs issues. With this background, this paper discusses the APEC PPSTI agendas and history within the perspective of Science Diplomacy among APEC region.

Assessing APEC in an Era of US-China Rivalry -APEC’s Transition from a Talking Shop to a Showroom

유재광 한국APEC학회 2019 Journal of APEC Studies Vol.11 No.2

The paper examines whether the role of the Asia-Pacific Economic Cooperation (APEC) in promoting free trade in the Asia- Pacific has been effective or not. Influenced by long-lasting cooperative experience both at economic and at security level among the Association of Southeast Asian Nations (ASEAN) members, a group of Asian-Pacific countries, which were supported by European and American counterparts, decided to create APEC in 1989 as an attempt to promote free trade among member economies. Despite some notable achievements in the facilitation of economic and technical cooperation in and out of the region, APEC has obtained a stigma of a ‘talking shop’ mostly from the prevalence of free-trade rhetoric devoid of concrete actions. The paper moves this critique one step further by claiming that APEC has begun to transit from a talking shop to a ‘showroom’. This viewpoint asserts that the most powerful states monopolize agendas at meetings and vie for presenting their preferred vision and worldviews, which are reflective of their national interests, to an international audience. By focusing on geo-politicization of talks at the apex of great powers rivalry at APEC, coupled with the lack of institutionalization within it, the paper illustrates that APEC now functions as a showroom between the US and China, losing its appeal as a structured economic dialogue or institution.

Assessing APEC in an Era of US-China Rivalry -APEC’s Transition from a Talking Shop to a Showroom-

Chaekwang You 한국APEC학회 2019 Journal of APEC Studies Vol.11 No.2

The paper examines whether the role of the Asia-Pacific Economic Cooperation (APEC) in promoting free trade in the Asia-Pacific has been effective or not. Influenced by long-lasting cooperative experience both at economic and at security level among the Association of Southeast Asian Nations (ASEAN) members, a group of Asian-Pacific countries, which were supported by European and American counterparts, decided to create APEC in 1989 as an attempt to promote free trade among member economies. Despite some notable achievements in the facilitation of economic and technical cooperation in and out of the region, APEC has obtained a stigma of a ‘talking shop’ mostly from the prevalence of free-trade rhetoric devoid of concrete actions. The paper moves this critique one step further by claiming that APEC has begun to transit from a talking shop to a ‘showroom’. This viewpoint asserts that the most powerful states monopolize agendas at meetings and vie for presenting their preferred vision and worldviews, which are reflective of their national interests, to an international audience. By focusing on geo-politicization of talks at the apex of great powers rivalry at APEC, coupled with the lack of institutionalization within it, the paper illustrates that APEC now functions as a showroom between the US and China, losing its appeal as a structured economic dialogue or institution.

A Study on APEC Policies to Enhance Inclusive Growth through Financial Inclusion

Gyoung-Gyu Choi 한국APEC학회 2021 Journal of APEC Studies Vol.13 No.2

This study analyzes the discussion on financial inclusion for inclusive economic growth, discussed at APEC during 2010-2018. Financial inclusion, a way to increase access to finance with low financial costs, has been discussed for a long time as an international agenda for the financially underprivileged, such as women, the poor, and SMEs. The World Bank has developed financial inclusion indicators such as the Global Financial Inclusion Index and the IMF to provide financial data. In 2010, the G20 adopted the G20 Principles for Innovative Financial Inclusion and launched a global partnership for financial inclusion for concrete implementation. APEC has also been actively discussing financial inclusion, holding the Asia Pacific Financial Inclusion Forum every year since 2010. In particular, in the era of digital innovation, APEC Leaders discuss various ways to raise the financial understanding and financial knowledge of the underprivileged with the digital divide. The most controversial part of expanding financial inclusion is the relationship between financial inclusion and financial development. Financial inclusion has been chiefly approached from social policy rather than economic or financial policy. On the other hand, financial development sees finance as an industry that competes in the market. In APEC, the economic and social issues of financial inclusion and the logic of the market of financial development can be harmonized through regional cooperation. Eventually, ways to achieve inclusive growth can be achieved so that the marginalized class in member economies can be freed from poverty through building a sustainable financial inclusion ecosystem.

The Welfare Impact of Data Localization on the APEC

Kyu Yub Lee 한국APEC학회 2019 Journal of APEC Studies Vol.11 No.1

This article builds a quantitative trade model to evaluate the welfare effects resulting from data localization measures. Based on the constructed model, it employs data from the World Input-Output Database to examine the welfare impact of data localization on the APEC economies. This paper highlights two distinct features of data localization, namely variable and fixed exporting costs. It shows that data localization measures can hurt all trading partners of the APEC economies in terms of real consumption. Further, the magnitude of the welfare effects stemming from data localization differs considerably across countries. This article suggests that the APEC economies should make efforts to minimize the welfare losses that arise from data localization measures.

Impacts of U.S. Interest Rate Hikes and Directions of Monetary and Financial Cooperation in the APEC Region

John Junggun Oh 한국APEC학회 2018 Journal of APEC Studies Vol.10 No.1

During the U.S. QE period, capital inflows took place in the Asian region; in particular, enormoU.S.ly in China, Korea, Malaysia, the Philippines, and Thailand, As a result, during the U.S. QE period, currencies in Singapore, Malaysia, Thailand, and China appreciated. In terms of real effective exchange rate (REER), currencies in China, Philippines, Korea, Singapore, and Thailand appreciated. Thus., during the U.S. QE period, the current accounts in China, India, and Indonesia deteriorated. During the U.S. QE period, reserves in China, Korea, India, Singapore, Malaysia, Thailand, and Indonesia accumulated. However, external debts also rapidly increased. As a result, ‘reserves-external debts’ rapidly deteriorated. In summary, during the U.S. QE period, external resiliency in terms of ‘reserves-external debts’ and the current account became fragile or weak in Asia. As the U.S. interest rate is now increasing, due to weak or fragile external resiliency in terms of the difference between reserves and external debts and current accounts in Asia, and in anticipation of exchange rate profits, capital outflows may take place in Asian countries similar to the period of January 1994 to February 1995, and May 2004 to July 2007, both of which resulted in foreign currency crisis in Asian countries. Accordingly, most Asian countries must prepare sufficient foreign currency liquidities and make efforts to improve current accounts. In addition, in order to prevent the recurrence of financial crisis originating from asymmetric monetary policies in the region, effective monetary and financial cooperation systems in the APEC region must be introduced.

Section 337 Investigations Trade Secret Misappropriation Cases

이영한(Young-Han Lee) 한국APEC학회 2020 Journal of APEC Studies Vol.12 No.2

As practice under Section 337 has grown, so has an interpretation of the law. Practice under Section 337 before the United States International Trade Commission (ITC) requires in-depth analyses and explanations of the participants in a Section 337 investigation and the procedural rules of an investigation and related issues. The ITC offers advantages for a complainant in proving the respondent responsible for case issues. Also, it is better adapted to employ the legal tech to the case. The remedy obtained in which a plaintiff prevails is much more robust; therefore, it gives the complainant a competitive edge. Section 337 investigation requires peculiar elements such as domestic industry, public interest, misappropriation of a trade secret, protection of the trade secret, and the trade secret’s economic value. Each element above needs an in-depth review to understand the characteristics of the investigation deeply. For instance, the domestic industry element for trade secret misappropriation requires in-depth case studies because the legal standard differs from patent infringement. Moreover, the legal standard itself variated from its initiation and relaxed itself to facilitate intellectual property rights holders’ protection, and thus it is crucial to investigate the specifics of other elements of the Investigations. The practice in Section 337 investigations has a significant impact on the APEC region due to the nature of cross-border disputes related to intellectual property, based on importing into the US territory. The ban on importation to the US gravely impacts trade amongst the APEC region, and APEC member economies should make an in-depth review of the Section 337 investigations.

Economic Relations of Bangladesh with Major International Players and Its Implication to APEC

Gyoung-Gyu Choi,Hongsheng Zhang,Md,Kamruzzaman Didar 한국APEC학회 2019 Journal of APEC Studies Vol.11 No.1

We analyze the relationship between Bangladesh and various international organizations. We explore the development of trade policy framework and relations with other countries in Bangladesh under the WTO regime. We also analyze Bangladesh s economic relations with major SAARC, APTA, EU and APEC economies and assess the strengths and weaknesses of Bangladesh in these relationships. In the current era of globalization, the world economy is interdependent. Bangladesh has maintained cooperative economic relationships with various international organizations, and its economy has grown at 6 percent annually for more than two decades. Despite significant development achievements, poverty remains a challenge as do infrastructure shortcomings, weak governance structures, extremist violence, and the need for greater investment in human capital. Bangladesh’s high population density compounds these challenges. In this backdrop, the Bangladesh government has signed bilateral and multilateral treaties to facilitate international trade with many countries and international organizations. Bangladesh s experience shows that international trade, investment, and foreign market access provided through the temporary movement of workers and professionals has a positive effect on improving foreign exchange availability, current account, income levels, economic growth, job creation, and reducing poverty. This will help Bangladesh develop a strong collaborative environment in the international community.