Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 30, 2012 erstellt
Beschreibung:
The recent episode of globalization has helped promote economic growth through trade and capital flows, but has also created vulnerability to external shocks. Korea’s globalization strategies are facing new challenges and opportunities since the global financial crisis in 2008. Korea needs to stay competitive in the changing pattern of global trade by taking advantage of the rise of emerging markets and upgrading its export structure in response to increasing global competition. The expansion of global production networks would provide enormous market opportunities for Korea. Industrial and trade policies should support potential high growth firms in identifying and developing the capabilities in expanding their access to the global supply networks. Global firms tends to be bigger, more productive, and more skill-and capital-intensive; and to pay higher wages than non-global firms. The government should undertake comprehensive innovation and entrepreneurship policies to strengthen firms’ capacity to compete in the global markets.Population aging poses a great threat to Korea’s growth potential. While demographic trends were conducive to economic growth in the past, they will no longer be so in the future. The experience of advanced countries suggests that the responses to aging population can lead to very different outcomes. Korea’s two major strategic options for aging are to sustain strong economic growth in the face of aging over the next few decades, and to develop social systems that will provide economic security to a growing number of elderly people. Success in achieving these two objectives will require policies that promote savings, investment in human capital, well-functioning financial and labor markets, and macroeconomic stability. It will also require avoiding disproportionately large transfer programs for the elderly