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Seoul Journal of Economics - Vol. 17 , No. 1
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Seoul Journal of Economics - Vol. 17, No. 1, pp. 117-151
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 29 Feb 2004
Received 19 Jan 2004 Revised 23 Jul 2004

Interdependency in East Asia and the Post-Crisis Macroeconomic Adjustment in Korea
Hak K. Pyo
Professor, School of Economics, Seoul National University, Seoul 151-742, Korea, Tel: +82-2-880-6395 (pyohk@plaza.snu.ac.kr)

JEL Classification: E2, E6, F1

Abstract

The purpose of this paper is to reexamine the financial crisis in Korea and its post-crisis macroeconomic adjustment reviewing changing structure of interdependency in East Asia and to make a critical assessment on its post-crisis reform programs. The painful experience of Korea's post-crisis macroeconomic adjustment and structural reforms seem to have received both positive and mixed evaluations. The overall macro economic environment in the post-crisis period has been stabilized. The Korean economy seems to have recovered some of its growth potentials and competitiveness. The movement in the overall productivity indicators such as labor productivity and total factor productivity seem to validate this judgment even though there was a structural break in 1997-8. However, it has long way to go because both financial sector reforms and corporate restructuring are far from being completed.

Keywords: Interdependency, Macroeconomic adjustment, East Asia, Financial crisis
Acknowledgments

For presentation at Seoul National University and University of Tokyo Joint Conference, Contemporary Economic Policy Issues in Asia at Seoul National University February 2, 2004. An earlier version of this paper was presented at RIETI-KEIO International Conference on Japanese Economy on May 30, 2003 in Tokyo.

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