Many Asian countries arc concerned that as the negotiations for the propa;el Free T rale Agreement of the Americas (FT AA) are concluded in 2005, it may erode their share of the largest trading market, North America. As a first step roward assessing the impact of the FTAA on Asian countries, rhis paper evaluates rhe effects of FTAA's predecessor, the North American Free Trade Agreement (NAFTA), on Korean external trade. Analys.as of the shifi: in shares, rrade intensity indices, and gravity models are used to assess the impact at a macro level, while trade diversion aod crearion effects are tested at sub-industty levels. Some lessons for future action are also drawn.
Following the suit of some other countries, the Seoul Metropolitan Government has ambitiously implemented the bus-only-lane (BOL) system as one of the new transportation reform plans. However, it does not seem that the project has achieved its primary goal of reducing the number of private vehicle drivers, and that the project is economically viable. This paper reports the results of an economic evaluation of Samil-Ro Bus-Only-Lane project, one of the representative BOLs in Seoul. It estimates travel demand both with and without project in order to examine the achievement of the project's goal of shifting private vehicle travelers to the reformed bus system. To test the project's economic viability, the paper also conducts a cost-benefit analysis by calculating the discounted net present value (NPV), internal rate of return (IRR), and benefit and cost ratio (B/C). Moreover, both the project's uncertainty and sustainability have been checked through the sensitivity and risk analysis and the environmental degradation effects test, respectively. In the conclusion, the paper also provides policy recommendations.
This paper investigates the impact of foreign aid on investment and economic growth of Ethiopia for the period 1971-2010. The result indicates that foreign aid has a statistically significant positive impact on domestic investment, while aid’s positive impact on per capita GDP growth does not depend on any macroeconomic policy conditionality. Rather, aid effectiveness depends on the peculiar social, political and economic institutions of particular periods. Aid is effective during both socialist and democratic regimes. However, aid’s impact on growth was greater for socialist regimes.
This study aims to revisit aid effectiveness but using disaggregated and lagged aid concepts. It empirically tests which of the disaggregated aid categories most effectively enhanced investment and economic growth during Korea’s remarkable development era (1960–2001); it also tests whether disaggregated aid promoted investment and economic growth more under a government with sound governance. The test results show that production and infrastructure sectors aid enhanced investment and economic growth in Korea. However, the results failed to show evidence that social-administrative sector aid promoted economic growth, although it may have contributed to poverty reduction. The results also show that production and infrastructure sector aid was effective irrespective of governance systems. The findings have far-reaching implications for aid allocation and coordination policies as well as economic growth and poverty reduction strategies during the SDG era.