The Impact of MRA in the IT sector on the Korean Economy

Wankeun Oh (), Choong-Han Yoon () and Kwang-Sun Lim ()
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Wankeun Oh: Hankuk University of Foreign Studies
Choong-Han Yoon: Hanyang University
Kwang-Sun Lim: Electronics and Telecommunications Research Institute

East Asian Economic Review, 2005, vol. 9, issue 2, 85-115

Abstract: In this paper, using partial equilibrium models and input-output analyses, we estimate the effects of MRA in the IT sector on the net exports of Korea as well as on the Korean macro economy in the aspects of production, value-added and employment. It is noted that there are significant increases in both net exports and national income, which is mainly made possible by decreases in certification costs and testing costs and hence by final product prices. We show that the MRA with U.S. and/or China has much larger effects on the Korean economy than the MRA with Japan. Among various IT sub-sectors of Korea, the mobile handset industry sector is found out to be the largest beneficiary of MRA. These results make sense in two reasons: U.S. and China are the largest two trade partners of Korea in the IT sector; the mobile handset sector is the largest contributor of exports in Korea.

Keywords: MRA; Trade Balance; IT sector; Input-Output Analysis (search for similar items in EconPapers)
JEL-codes: F13 F14 L86 L96 (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0174

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