The purpose of this research is to evaluate economic effects of import liberalization and its impact on industry development, and by examining current regulation on industrial structure, to provide policy alternatives.
According to the total import liberalization index, which was written based on the liberalization process, Korea’s import liberalization showed the most progress from 1965 to 1967 and after 1978. The previous liberalization was mainly done by relaxation on quantity regulation, and later was added by gradual decrease in tax rate.
By looking at the relationship between total import liberalization rate and import on domestic product from 1966 to 1970 and 1975 to 1985, in previous years it was difficult to see whether import liberalization has statistical significance, and also in later years, the relationship is statistically insignificant. This shows that import liberalization policy did not have any impact on domestic manufacturing industry. There is a slight difference between the two periods, which are impacted by ways to push forward with liberalization and changes in industry structures throughout Korea’s economic development.
Not only has Korea the best conditions to move forward with import liberalization, but it is also in position to enforce this policy due to pressures from the United States and its trade surplus. There is a need to abolish quantity limitation on imports regulated by special law, and also decrease other import limitations regulated by the Ministry of Commerce, Industry and Energy. In order to avoid conflict with international trade law, it is important to adjust tariff policy based on 18th amendment of GATT regulation and 201 amendment of US trade law. To adopt these policies, Korea should come up with industrial structure regulation and policies that aligned with international regulations to avoid damages within domestic industry and measures to support these industries.
수입자유화의 경제적 효과와 산업조정정책
|Series Title; No||연구보고 / 88-07|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade|
|Holding||KDI; KDI School|