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2025

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Do Tariffs Shape Foreign Direct Investment in the Era of Globalization? Evidence from South Korea

Published on March 2025 No.63

This column summarizes a study that offers a new perspective on how multinational firms adapt to significant tariff changes during an era of globalization. Specifically, it examines the impact of tariff shocks in destination markets on Korean firms’ outward foreign direct investment (FDI) from 2010 to 2018. The findings reveal an asymmetric impact of tariffs: significant decreases in tariffs lead multinational enterprises (MNEs) to reduce the number of subsidiaries, rather than reducing the average investment per subsidiary. In contrast, the effects of tariff increases on FDI are muted. The study also highlights that more productive firms are more likely to reduce the number of subsidiaries they maintain in developing countries when faced with substantial tariff decreases. These findings underscore how MNEs adapt to evolving trade policies, reallocating resources among their foreign subsidiaries.

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Who Suffers the Most during the COVID-19 Pandemic? Evidence from Thailand

Published on March 2025 No.62

The global labor market was significantly disrupted by COVID-19, and this study examines the impact on Thailand using Labor Force Survey data from 2018 to 2021. The workers most adversely affected are those (1) employed in high-risk sectors, (2) with lower levels of education, and (3) in younger age groups. The findings indicate that the unemployment rate is positively associated with sectoral risk levels and marital status, where married individuals and public sector employees are less likely to be unemployed. Additionally, parenthood has been linked to lower wages, with a more pronounced effect on women, suggesting a “she-cession” in the nation.

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Surgical Productivity Change During and After the COVID-19 Pandemic in Japan

Published on February 2025 No.61

What are the effects of the coronavirus disease 2019 (COVID-19) pandemic on routine healthcare services other than COVID-19 treatments? We investigated the surgical productivity change during and after the pandemic in Japan by examining the case of a large university hospital. Our studies revealed that the COVID-19 pandemic negatively affected the improvement of surgical productivity in the short term. However, the change in surgical productivity did not suffer from the state of emergency during the pandemic. Furthermore, no evidence indicated that the pandemic had any lasting effects on reducing surgical productivity during the post-pandemic period. Our implications for surgical practice and healthcare policy would be valuable lessons for future pandemics.

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Go Further with Evidence-Based Research: Disability and Development

Published on January 2025 No.60

The Global South confronts numerous pressing issues that must be resolved to alleviate poverty. Such urgent problems include the often-overlooked challenges confronting people with disabilities. Unfortunately, the Sustainable Development Goals (SDGs) do not adequately represent these difficulties, probably because of the paucity of relevant data. Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO) has endeavored to create a data model to bridge this gap. This model will compile comprehensive information on people with disabilities and thus deliver essential data for policymakers.

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Rise of Digital Service Providers in Vietnam: Global and Local Factors Beyond Knowledge?

Published on January 2025 No.59

As digitalization transforms global economic activities, some developing countries are witnessing an increase in homegrown entrepreneurs who leverage technology to address local needs and challenges. Although studies have emphasized the critical role of “returnee entrepreneurs” equipped with the technology and business models acquired abroad, local knowledge and connections are also essential for managing a business. Fujita (2024) uses Vietnam as a case study to show how global influences and local dynamics together impact the emergence of domestic players in digital services.