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    Optimal Competition Policy for Export Marketing Boards
    Jae Hyeong Kang, Sanghack Lee, Sanghoon Lee
    Pages 1-8
  • Abstract || PDF
    •    This note derives optimal competition policy for export marketing boards dealing with many products. The optimal number of export boards is shown to one plus the ration of weighted sum of the slopes of export supply curves relative to weighted sum of the slopes of import demand curves. Utilizing graphic methods. this note also discusses the effects of fixed costs on the optimal number of export marketing boards.
    Estimating the Minimum Size of the North Korean Shadow Economy
    Doo Won Lee, Sang Jin Han
    Pages 9-35
  • Abstract || PDF
    •    Estimating the relative size of the shadow economy, which is often called an underground economy, is important in any country to make effective economic decisions. In particular, it can be crucial to understanding the economic performance of North Korea. whose official economic sector is rapidly dismantling. This paper tried to estimate the relative size of the North Korea shadow economy and therefore defining the shadow economy as all economy. This paper introduced the current status of the North Korean shadow economy as well as some backgroud infromationg behind it. Beginning with the estimates made rule of thumb, this paper employs three different methods to estimate the relative size of the North Korean shadow economy as of 1999. First, it tries to sum up individual shadow economic sectors based on various sources. Assuming that there are three supply routes for the shadow economy, this paper estimated each of them and adds them up. According to this method, the shadow economy is accounting for at least 12.2% of GDP. Second, by relying on surveys recently conducted with North Korean refugees, it tried to estimate the shadow economy by examining the differences between income and expenditure levels of North Korean households. This method estimates the North Korean shadow economy to be as big as 11.5% of its GDP. Third, assuming that electricity consumption is the single most important physical indicator that can explain the growth of an overalll economy. this paper estimated the overall size of the North Korean economhy first. After that, it calculated the size of the shadow economy by subtracting the officail GDP from the overall GDP. This method can be regarded as the most rigorous method. and it estimated the North Korean shadow economic size, which is the estimate of the North Korean shadow economic size, which is approximately 12% of its official economic size as of 1999. But, it has to be noted that most of these estimations are based on the assumptions that can estimate the shadow economic size at its minimum level. Therefore, it is very likey that the actual size of the North Korean shadow economy can be slightly larger thatn these estimations.
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    Pages 37-52
  • Abstract || PDF
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    Pages 53-96
  • Abstract || PDF
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The Korean Journal of Economics, Vol. 10, No. 1 (Spring 2003)