Interaction Between Trade and Competition: Why a Multilateral Approach for the United States?

This thesis consists of two essays and an introduction. The main theme is technological knowledge that is not based on the natural sciences.The first essay is about rules of thumb, which are simple instructions, used to guide actions toward a specific result, without need of advanced knowledge. Knowing adequate rules of thumb is a common form of technological knowledge. It differs both from science-based and intuitive (or tacit) technological knowledge, although it may have its origin in experience, scientific knowledge, trial and error, or a combination thereof. One of the major advantages of rules of thumb is the ease with which they can be learned. One of their major disadvantages is that they cannot easily be adjusted to new situations or conditions. Engineers commonly use rules, theories and models that lack scientific justification. How to include these in introductory technology education is the theme of the second essay. Examples include rules of thumb based on experience, but also models based on obsolete science or folk theories. Centrifugal forces, heat and cold as substances, and sucking vacuum all belong to the latter group. These models contradict scientific knowledge, but are useful for prediction in limited contexts where they are used when found convenient. The role of this kind of models in technology education is the theme of the second essay. Engineers’ work is a common prototype for pupils’ work with product development and systematic problem solving during technology lessons. Therefore pupils should be allowed to use the engineers’ non-scientific models when doing design work in school technology. The acceptance of these could be experienced as contradictory by the pupils: a model that is allowed, or even encouraged in technology class is considered wrong when doing science. To account for this, different epistemological frameworks must be used in science and technology education. Technology is first and foremost about usefulness, not about the truth or even generally applicable laws. This could cause pedagogical problems, but also provide useful examples to explain the limitations of models, the relation between model and reality, and the differences between science and technology.QC 20111118</p

Economic Growth and Human Development in the Republic of Korea

human development, poverty, empowerment

Human Capital and Income Inequality

This study investigates empirically how human capital, measured by educational attainment, is related to income distribution. The regressions, using a panel data set covering a broad range of countries between 1980 and 2015, show that a more equal distribution of education contributes significantly to reducing income inequality. Educational expansion is a major factor in reducing educational inequality and thus income inequality. Public policies that improve social benefits and price stability contribute to reducing income inequality, while public spending on education helps to reduce educational inequality. In contrast, higher per capita income, greater openness to international trade, and faster technological progress tend to make both income and education distribution more unequal. Using the calibration of empirical results, we find that we can attribute the rising income inequality within East Asian economies in recent decades to the unequalizing effects of fast income growth and rapid progress in globalization and technological change, which have surpassed the income-equalizing effects from improved equality in the distribution of educational attainment during the period

Government Interventions and Productivity Growth in Korean ManufacturingIndustries

This paper investigates the impact of government industrial policy and trade protection of the manufacturing sector in Korea. Empirical results are provided, using 4-period panel data for the years 1963-83, for 38 Korean industries in which trade protection reduced growth rates of labor productivity and total factor productivity, while industrial policies, such as tax incentives and subsidized credit, were not correlated with total factor productivity growth in the promoted sectors. The evidence, thus, implies that less government intervention in trade is linked to higher productivity growth.

Capital Goods Imports and Long-Run Growth

This paper presents an endogenous growth model of an open economy in which the growth rate of income is higher if foreign capital goods are used relatively more than domestic capital goods for the production of capital stock. Empirical results, using cross country data for the period 1960-85, confirm that the ratio of imported to domestically produced capital goods in the composition of investment has a significant positive effect on per capita income growth rates across countries, in particular, in developing countries. Hence, the composition of investment in addition to the volume of total capital accumulation is highlighted as an important determinant of economic growth.

IMF Bailouts and Moral Hazard

This paper empirically investigates the extent of investor moral hazard associated with IMF bailouts by analyzing the responses of sovereign bond spreads to the changes in the perceived probability of IMF bailouts of countries undergoing financial crisis. We do not find strong evidence that the extent of investor moral hazard changed after the non-bailout of Russia in August 1998 that signaled a modification to IMF intervention policy. In contrast, we find evidence that investor moral hazard is intensified for those countries that have stronger political connections to the IMF and that are thereby more likely to be bailed out by the IMF. This pattern prevailed even after the Russian crisis.IMF, moral hazard, sovereign bond spreads, international financial architecture

Exchange Rate Regimes and Economic Linkages

We investigate how the exchange rate regime influences economic linkages across countries. We divide the exchange rate regime into three classifications: currency union, peg and floating exchange rates. Unlike most studies solely focusing on the relationship between anchor and client countries, the exchange rate regime between any two countries is inferred based on their relationship to the common anchor currency. Then we empirically explore how the various exchange rate regimes impact on bilateral trade, output co-movement and financial integration. Financial integration is measured by the degree of risk sharing reflected in consumption co-movement relative to output co-movement. We find that, while currency union has the greatest effect, the peg regime also significantly boosts trade. We also find that, while the peg regime contributes to both output and consumption co-movements, the currency union strengthens only consumption co-movement and possibly lowers output co-movement. These findings are interpreted that the currency union, the strictest form of pegged regimes, leads to higher industry specialization and better risk sharing opportunities than the less strict peg regime.Exchage Rate Regime, Economic Linkage, Trade, Output Co- movement, Cosumption Co-movement, Risk Sharing