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The Developing Economies

Volume 39, Number 1 (March 2001)

The Developing Economies ■ The Developing Economies Volume 39, Number 1 (March 2001)
■ B5
■ 105pp.
■ Published in March 2001
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Ippei Yamazawa, "Assessing a Japan-Korea Free Trade Agreement," pp. 3-48.

Bilateral FTA initiative is a new element in Japan's trade policy. Reports on Japan-Mexico and Japan-Korea FTAs were published last year and negotiations on a Japan-Singapore FTA have started recently. The Institute of Developing Economies, JETRO conducted a study on the Japan-Korea FTA in collaboration with the Korea Institute for International Economic Policy. They published joint reports in May 2000, and held joint symposia in Seoul and Tokyo directed at business, academia, and the mass media. Public discussion of the issue has just begun and needs to be expanded and intensified as was in the case of the EEC and NAFTA. This paper provides economists and researchers with a foundation for future discussion on this issue. It is based on the Executive Summary of the IDE-JETRO study but augmented with arguments for and against the FTA proposal which this author encountered at the joint symposia and on other numerous occasions.

Huala Adolf, "Trade-Related Aspects of Intellectual Property Rights and Developing Countries," pp. 49-84.

To many developing countries, the trade-related aspects of intellectual property rights (TRIPS) is still alien. Prior to the conclusion of the TRIPS Agreement with the WTO, many countries did not have their own legislation protecting intellectual property rights. The existence of the TRIPS Agreement has brought about burdensome obligations for these countries. Most notably is the obligation to enact various acts in this field at the national level. Additionally, they are now legally bound to provide stronger protection to foreign intellectual property rights. In return for these obligations, the TRIPS Agreement woefully provides only modest provisions for developing countries. Moreover, the TRIPS Agreement lacks attention to the development needs of developing countries.

Shyama V. Ramani, Mhamed-Ali El-Aroui, and Pierre Audinet, "Technology Transfer: Partner Selection and Contract Design with Foreign Firms in the Indian Biotechnology Sectors," pp. 85-111.

Though technology transfer has been extensively studied in the economics literature, there is no distinction between the different "forms of technology transfer," and few explanations on the "partner selection criteria" or the "contract design" that sustain such international cooperation. In this connection, this paper attempts to contribute to the study of the strategic foundations underlying inter-firm cooperation between developed and developing countries. It develops a game theoretical model of technology transfer and tests the propositions of the model using data pertaining to India, with the biotechnology sectors as the knowledge-based industry of reference.

Romeo M. Bautista, "Agriculture-Based Development: A SAM Perspective on Central Vietnam," pp. 112-32.

The Central Region of Vietnam is the least developed of the three major regions, the country's rapid economic expansion during the 1990s having been concentrated in the southern and northern areas. The poor within the population of Central Vietnam are mostly found in the rural economy where agriculture provides the primary means of livelihood. In this paper SAM (social accounting matrix) multiplier analysis is used to investigate quantitatively the economy-wide repercussions of exogenous income increases in agriculture (such as that arising from productivity growth) in Central Vietnam, paying particular attention to the effects on overall income growth and equity. The equity impact is evaluated in terms of the induced relative changes on the incomes of four household groups examined in the study. Some policy implications of the results are discussed, emphasizing the role of macroeconomic policies in helping promote equitable growth in Central Vietnam.