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Korea has often been quoted as a model country of economic development. In recent years, however, critical views have also been built up on the development processes of the Korean economy. And, in fact, many of the critical evaluations are made based on the Marxian or Neo-Marxian development theory. This study is to propose a new line of analytic framework for the study of economic development processes. The proposed model is based on four general rules of economic development. One of them suggests that economic development precesses should be evaluated in terms of the standard of human rights and economic welfare. And the idea of single line of economic development processes is refuted on the basis of the Weberian approach. In the later part of the paper, the proposed theory of economic development is applied to the Korean development experiences. This study finds that the current economic problems in Korea are originated not only from her distorted history but also from her economic development policies adopted. It also sees that the recent transition in the Korean economy produces an optimism but with some reservations. For the final assessment of the Korean economic development process, however, we should wait until when Korea can successfully go through structural changes as desired.
In this paper I attempt to formulate the behavior of both price and R&D activities in the telecommunications industry including service industry as well as equipment industry in order to analyze the effect of vertical integration between telecommunications industry and research institution. I assume in the model that the market for telecommunications service is monopolized while that of equipment is compare in Cournot-Nash form. Furthermore, I assume both industries has to provide the research fund to R&D institution according to the rule set by either the government regulation or their own optimal manner. It can be shown in the theoretical results that the closer both telecommunications industry and R&D institution are vertically integrated, the more the R&D fund is allocated to research institution, the better the welfare in those industries are increased through the cost reduction. In order to enhance the R&D activity in those industries, the R&D rule set by the government regulatory agent should be modified to their optimal R&D rule, which can improve more the competitiveness of telecommunication industry.
This paper presents a survey of how Korea's industrial policy operates and what effects it has. It describes the specific instruments of the poicy and effectiveness of its instruments. Industrial policy is defined here as the totality of governmental policies undertaken with the ovject of changing the allocation of resources among industries from what it would otherwise be, or intervening in the industrial prganization of a specific industry, in order to promote a country's economic growth when unristricted functioning of the competitive market mechanism is seen to fail in serving that end. Korean industrial policy is a package of plicy instuments that developed and evolved to accelerate economic growth of certain key industies. The disignated industries had priority in acquiring rationed credits and foreign exchange, state investment fund, preferential tax treatments and supportive measures. The most important tool of such policy was the use of policy loans and tax measures. Policy loans accounted for 55.8% of total bank loans in 1992. The system of taxation in Korea has a general bias in favor of business investment, through such provisions as reduction and exemption from taxation of corporate income. A big tax amount which accounted to 16.8% of total corporate tax revenue exempted in 1989. Credit policy in Korea largely involves explicit and implicit control of interest rates. The export-priented, key industry, and large firms had strongly benefited from a variety of policy incentives. The measures employed in Promotional Acts enacted in the late 1960s and early 1970s provided legal backing for supporting for such priority sectors as machinery, shipbuilding, electronics, petrochemicals, iron and steel, non-ferrous metals, and textiles. In 1986, various Promotional Laws were integrated into the Industry Development Act. The novelty of the Industry Development Act compared to the Promotional Acts is its emphasis on rationalization programs with limited lifetimes. This paper surveyed about the effectiveness and the policy directions of industrial policy in Korea. According to the survey results, 47.0% of the surveyed firms reported the effectiveness of industrial policy instrument, among which the policy instrument for corporate investments was proved to be most effective. In future, especially, in preparation to the coming WTO regime, many firms expect technology-oriented industrial policy; 58.5% of the surveyed firms expect the government to support more the firm's efforts in developing new technology and 40.9% expect the support for the basic researches.
In the wake of the rapid economic development of Asian NIEs during the 1970s and 80s, the world has also given attention to the highly economic growth trends of other Asian countries, such as several ASEAN nations and China. The recent economic performances of these East Asian countries have shown as outstanding, especially in case of Tilan 8.3% of the average growth rate91990~92), Malaysia 8.7%(1990~93) and China 11.7%(1991~93) etc., compared to 1.7% of the world average rate(1990~93). With the break-down of East European socialist regime, a world-wide revival of economic regionalism has been brought, rapidly in Western Europe and North America as of the EU's market integration program and the NAFTA's launching. On the other hand, same movenment has also emerged in East Asian region, for instance, as of the AFTA formation by ASEAN, the EAEC idea by Malaysia and the APEC developing program by Asia-Pacific nations. Furthermore, we can find of the other form of regional integrations in this area, so called as the 'localized economic zone'(LEZ) of the various sub-regional sizes here and there. The LEZ is an unique integration form of which could be specialized as the Asian regionalism today. And that is different from the existing ones, such as EU, NAFTA and ASEAN as follows; Firstly, the LEZ is rather organized unofficiallly and naturally by private enterprises activities for their market strategies, than organized officiall and intentionally by an international agreement between nations engaged. So, that is quite different from the usual economic integration form such as a customs union or a free teade agreement. Secondly, the LEZ is rather organized of the sub-regional economies by the local governments, than organized of the naion-wide economy by the central government. In case of the North-East Asian economic zone, China, as a main memeber of the formation, does not involve in all country itself, but only involve in three local governmental districts which composed of Liao Nign Sheng, Ji Lin Sheng and Hei Long Giang Sheng. According to this point of view, ths paper tried to ezamin the implications of the East Asian unique regionalism(the LEZs), compairing to the existing European and American ones. As a preliminary result, we can likely say that there is a remarkable relationship between the recent dynamic LEZ's emergence and the good economic records of this region, of which the former has been in favour of the latter.