This study introduces and explains the concept of the food stock holding program for food security, and provides an overview of the state of the program in the Far Eastern countries: South Korea, Japan, Taiwan, and Hong Kong. Almost every nations adopts some form of protectionism towards its domestic industries as part of an effort to maintain sound trade balances. In order to gain an understanding of the structure of Korean industries subject to protectionist measures, we need first measure and estimate their nominal and real rates of protection. Korean researchers made attempts to estimate and analyze these rates in the past, in 1968 and 1978.
This study attempted to estimate the current nominal and real protection rates, continuing from past estimates, referencing the Domestic Producer Price Index, the International Market Price Index, and the Exchange Rate Index. This method was also used to determine the time series for the nominal protection rates applied to individual goods and industries since the early 1960s. The resulting nominal rate estimates differ significantly from past estimates, indicating the likelihood of changes in real rate estimates as well. This study estimated the nominal rates applying to individual and mixed industries for seven years—1963, 1966, 1968, 1970, 1973, 1975, and 1978—and used the revised estimates to estimate the real protection rate applying to mixed industries in 1963, 1970, 1975, and 1978.
These estimates suggest the following characteristics and long-term prospects for different industries in Korea: First, the primary sector (particularly agriculture) received greater protection than the manufacturing sector. While protection was manifest in certain manufacturing industries, such as those for durable consumer goods, transportation equipment, and general machinery until the mid-1970s, recently protection has been decreasing. Protection applying to intermediary material processing industries was relatively low with respect to the primary intermediate goods, but higher with respect to the secondary intermediary (more processed) goods. The rates of protection for both exporting industries and industries without import competition were low, and high for industries with import competition or both export and import competition.
명목 및 실효보호율 구조의 장기적 변화(Long-term changes in the structure of nominal and real protection rate)s
|Journal Title; Vol./Issue||한국개발연구:vol. 4(no. 1)|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Macroeconomics|
|Holding||KDI; KDI School|