Decomposing and Analyzing Korea’s Declining GDP Growth: Some Cautions and Suggestions

Chin Hee Hahn and Sukha Shin (2007) have developed new decompositions of Korean economic growth from 1990 to 2004. They find that Korea’s declining GDP growth has been accompanied by a sharp decline in capital deepening and an increase in total factor productivity. By contrast, Jorgenson and Vu’s (2007) decompositions of Korea’s GDP growth find that total factor productivity decreased over this period. This paper compares the two decompositions; evaluates Hahn and Shin’s hypothesis that competition from Chinese imports may be driving the decline in GDP growth; and briefly presents four other candidates (decline in Korean savings, business cycle effects, weak IT investment, and regulatory and wealth redistribution initiatives) that could be partially responsible for the slowdown in Korean GDP growth.GDP, TFP, China, Korea, capital, labor, decomposition, productivity.

Globalization and SMEs: A Comment on Three Asian Experiences

This paper briefly discusses three case studies (Choi and Tcha 2005; Lin 2005; Motohashi 2005) of responses by small and medium-size manufacturing enterprises (SMEs) in Korea, Taiwan, and Japan to the rising tide of imports from China in their product markets. They find vastly different responses in each country, with some firms relocating plants to mainland China; others exiting affected product markets; and some maintaining home country production by moving up the product ladder and using new production technologies. This paper conjectures that outmoded production technologies may underpin the exit of Japanese SMEs from these product markets; considers the impact that potential impact of Chinese imports on Korea’s attachment to a market economy; and finds that Taiwan’s SME investments in mainland China have substantial political as well as economic roots. The long-run response by Northeast Asian SMEs to Chinese competition will, in all three countries, be closely tied to SME development (via in-house or cooperative R&D) or acquisition of rights to new products and technologies. I conclude that a better understanding of the public and private institutions structuring SME contracting vis-a-vis R&D projects and technology acquisition is vital to each country’s development of effective policy responses to the meteoric rise of China.Globalization, SMEs, creative destruction, exports, imports, entry, exit

The Economic History of Hawai‘i: A Short Introduction

This paper provides a short introduction to the economic history of Hawai'i since 1778. References are provided for readers with interests in particular topics.

Land Tenure: An Introduction

Land tenure refers to the bundle of rights and responsibilities under which land is held, used, transferred, and succeeded. This essay surveys land tenure arrangements throughout the world since the Roman Empire. Particular attention is paid to how six forms of land tenure emerge, function, and change. The six forms of land tenure analyzed are (1) owner cultivation of small, private lands; (2) squatting on public or private lands; (3) large estates or latifundia; (4) feudal tenures with bound and unbound labor; (5) communal tenures; and (6) smallholder leasing from private landowners.

The Dog ATE my Economics Homework! Estimates of the Average Effect of Treating Hawaii’s Public High School Students with Economics*

Hawaii is one of 27 states that do not require testing of public high school students regarding their understanding of economics. We report results for the first economics test administered to a large sample of students in Hawaii public high schools during the Spring 2004 semester. Our analysis focuses on evaluating the impact of a semester-long course in economics on student scores on a 20-question, multiple-choice economics test. We specify and estimate a regression analysis of exam scores that controls for other factors that could influence student performance on the exam. While student scores on the economics exam are relatively low, completion of an economics course and participation in a stock market simulation game each add about one point to student scores.economic education, high school economics, stock market simulation

The Designated Hitter Rule in Baseball as a Natural Experiment

All but two professional baseball leagues have adopted the “designated hitter” (DH) rule, which allows a team’s manager to designate a player to bat at the plate and run the bases in place of another player, usually the team’s pitcher. Unlike the team’s other players, the designated hitter does not take the field to play defense. This paper provides a survey of a large literature investigating the DH rule’s effect on the incentives of pitchers to hit batters and on changes in the number of hit batsmen. We also consider whether the DH rule provides a good example of a natural experiment, as some professional baseball leagues were “treated” with the DH rule and others were not treated.baseball, designated hitter, moral hazard, natural experiment, Japan

The Impact of Civil Unions on Hawai`i’s Economy and Government

On 29 April 2010, the Hawai`i State Legislature passed HB 444, a measure that allows same-sex and opposite-sex couples to enter into civil unions. This report provides quantitative and qualitative measures of the impact of civil unions on the Hawai`i economy, Hawai`i businesses, and the State of Hawai`i’s budget. More specifically, we examine the effect of civil unions on tourism arrivals to Hawai`i; state government revenues and expenditures; employer provision of health insurance to civil union partners and their dependents; and the family with civil union partners. We conclude that the Legalization of civil unions in Hawai`i will have only a very minimal impact on any aspect of Hawai`i’s economy and state government operations.civil union, health insurance, visitor arrivals, Hawai`i

Economic Education’s Roller Coaster Ride In Hawaii, 1956-2006

During the early 1960s a few of Hawaii’s public high schools began to offer economics courses, and they gradually became popular social studies electives. By 1999, over 46% of public high school seniors completed a one-semester course in economics. From this peak, enrollment rates would plummet to just 11% in 2003, before rebounding to 27% in 2005 and 2007. Our analysis searches for an explanation by identifying large changes in key variables and public policies that determine demand for and supply of economic education in Hawaii’s schools. We conclude that changes in the incentives facing large Hawaii businesses, University of Hawaii faculty and administrators, and bureaucrats in the State of Hawaii Department of Education have reduced the supply of qualified teachers and student enrollment rates.economic education, Hawaii, enrollment, network externality