Economic Papers Vol.4 No.1(1)
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Data Source연구조정실 (Monetary Studies Team(tel : 82-2-759-5407, fax:82-2-759-5410) )
date2001.06.19
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Contents for Economic Papers Vol.4 No.1
* Economic Papers was first published in January 1998 by the Bank
of Korea, and it will appear twice a year.
* Opinions expressed herein are those of the authors and not
necessarily those of the Bank of Korea. The authors will be
glad to receive comments on their articles.
Economic Studies Office, The Bank of Korea
110 3-Ka Namdaemun-Ro Chung-Ku Seoul 100-794, Korea
Phone : +82-2-759-5406
Fax : +82-2-759-5410
E-mail : eso@bok.or.kr
1. Financial Development and Economic Growth: The Role of Information
Accumulation(Byungyoon Lee)
2. On the Estimation of the Productivity of Korean Commercial Banks
(Choong Lyul Lee and Young Soo Lee)
3. Economic Shock and Structural Change: Is There a New Economy in
Korea, too?(Jong-Kun Lee)
4. Intra-Industry Trade of Korea: Its Trends and Determinants
(Chiho Kim and Yo Chul Choi)
5. Exchange Rate Movement Before and After Free Floating: Efficiency
and Technical Trading Profitability (Sangdai Ryoo)
6. Exchange Rates, Exchange Rate Volatility and Investment in Korea:
An Empirical Investigation (Changkye Choi)
7. The Optimal Currency Basket and the Currency Bloc in Asia*
(Tae-Joon Kim and Jai-Won Ryou)
Financial Development and Economic Growth: The Role of Information
Accumulation
Author: Byungyoon Lee
Full Text: EP_4_1_1.pdf
Summary:
This paper analyzes the relationship between financial
development and economic growth focusing on the role of
information accumulation. I construct a theoretical model in
which information accumulation of banks through learning-by-lend
ing determines both the level of financial development and the
economic growth rate. The main results of the present paper
can be summarized as follows. First, a country efficiently
accumulating information in the financial sector achieves rapid
growth and a high degree of development of its financial sector.
Second, due to the self-reinforcing process in information
accumulation, multiple equilibria occur. One of them is a low
equilibrium, the so-called "development trap", characterized by
low growth and underdevelopment of the financial sector, while
the other is a high equilibrium which shows high growth and
a high level of development of the financial sector. The results
of this paper imply that an economy having a low level of initial
development of the financial sector is likely to have a low
equilibrium. I suggest international borrowings as a policy with
which a government can save an economy from a low equilibrium
trap through Pareto improvement.
On the Estimation of the Productivity of Korean Commercial Banks
Author: Choong Lyul Lee and Young Soo Lee
Full Text: EP_4_1_2.pdf
Summary:
We define a total factor productivity of Korean commercial bank
and we decompose it into several factors to find productivity
determinants of Korean commercial banks. In addition, we classify
Korean commercial banks into many groups and we test whether total
factor productivities are the same among these groups. According
to our estimation result, TFP growth rates of Korean commercial
banks suddenly fall from 1995. In addition, there is a significant
difference in TFP growth rates of 1997 between Model Ⅰand Mode
l Ⅱ indicating that not only the total bank loans but also the
non-performing loans increase very much in 1997.
When decomposing TFP growth rates, an economies of scale effect
and a branch effect help to increase the TFP growth rates during
1990s while a senior worker effect, an information technology
effect, a general technology effect and a branch effect help to
reduce. When classifying Korean banks into several groups and
decomposing their TFPs into several factors, we find that some
effects are significantly dif