콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Financial Policy
Economy Economic Conditions

Print

Openness, growth and inflation : Evidence from South Korea before the economic crisis

Related Document
Frame of Image
  • Openness, growth and inflation
  • Jin, C. Jang
  • University of Washington


link
Title Openness, growth and inflation
Similar Titles
Sub Title

Evidence from South Korea before the economic crisis

Material Type Reports
Author(English)

Jin, C. Jang

Publisher

Washington,D.C. : University of Washington

Date 2017
Pages 35
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Financial Policy
Economy < Economic Conditions
Holding University of Washington
License

Abstract

The effects of increasing openness on economic growth and inflation are examined for the South Korean economy before the economic crisis of 1997/98. The framework of analysis is a seven-variable vector autoregressive model. The impulse response functions indicate that a shock to openness have negative effects on the growth rates of output and of the price level, but no longer-run effects. The variance decompositions also indicate significant effects on these variables, and the results appear to be robust across lag lengths variable orderings, and alternative openness measures. The negative output effect of increasing openness appears to be consistent with some models in which increased international competition due to openness may cause domestic investment to shrink and its reduction would be greater than and increase in capital inflows.