Facts and Findings on the Statistical Discrepancies of the Korean Balance of Payments

Facts and Findings on the Statistical Discrepancies of the Korean Balance of Payments

The Korea experienced drastic increases in the statistical discrepancy in balance of payments since 1997. In general, the expansion and complexity of external transactions induced by contributing capital account liberalization has contributed to this fact. The abolition of the export/import approval...

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Main Author: Sangyong Joo
Format: Article
Language:English
Published: Korea Institute for International Economic Policy 2000-03-01
Series:East Asian Economic Review
Subjects:
Balance of Payment
Dollar
Capital Flow
Korea
Online Access:http://dx.doi.org/10.11644/KIEP.JEAI.2000.4.1.63
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spelling doaj-5948c561b5ee4791b94adb819a978e462020-11-25T02:51:25ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16672000-03-0141173195http://dx.doi.org/10.11644/KIEP.JEAI.2000.4.1.63Facts and Findings on the Statistical Discrepancies of the Korean Balance of Payments Sangyong Joo 0Sejong UniversityThe Korea experienced drastic increases in the statistical discrepancy in balance of payments since 1997. In general, the expansion and complexity of external transactions induced by contributing capital account liberalization has contributed to this fact. The abolition of the export/import approval system seems to have accelerated the mismeasurement and omissions in external transactions. Of course, the influence of currency crisis occurred cannot be ruled out. Among economic factors, Won/dollar exchange rate volatility is found to have significant explanatory power on the magnitude of statistical discrepancy, while exchange rate returns have not. WE interpret this as the demand for relatively safe currency rising in presence of the uncertainty in domestic currency values.http://dx.doi.org/10.11644/KIEP.JEAI.2000.4.1.63Balance of PaymentDollarCapital FlowKorea
collection DOAJ
language English
format Article
sources DOAJ
author Sangyong Joo
spellingShingle Sangyong Joo
Facts and Findings on the Statistical Discrepancies of the Korean Balance of Payments
East Asian Economic Review
Balance of Payment
Dollar
Capital Flow
Korea
author_facet Sangyong Joo
author_sort Sangyong Joo
title Facts and Findings on the Statistical Discrepancies of the Korean Balance of Payments
title_short Facts and Findings on the Statistical Discrepancies of the Korean Balance of Payments
title_full Facts and Findings on the Statistical Discrepancies of the Korean Balance of Payments
title_fullStr Facts and Findings on the Statistical Discrepancies of the Korean Balance of Payments
title_full_unstemmed Facts and Findings on the Statistical Discrepancies of the Korean Balance of Payments
title_sort facts and findings on the statistical discrepancies of the korean balance of payments
publisher Korea Institute for International Economic Policy
series East Asian Economic Review
issn 2508-1640
2508-1667
publishDate 2000-03-01
description The Korea experienced drastic increases in the statistical discrepancy in balance of payments since 1997. In general, the expansion and complexity of external transactions induced by contributing capital account liberalization has contributed to this fact. The abolition of the export/import approval system seems to have accelerated the mismeasurement and omissions in external transactions. Of course, the influence of currency crisis occurred cannot be ruled out. Among economic factors, Won/dollar exchange rate volatility is found to have significant explanatory power on the magnitude of statistical discrepancy, while exchange rate returns have not. WE interpret this as the demand for relatively safe currency rising in presence of the uncertainty in domestic currency values.
topic Balance of Payment
Dollar
Capital Flow
Korea
url http://dx.doi.org/10.11644/KIEP.JEAI.2000.4.1.63
work_keys_str_mv AT sangyongjoo factsandfindingsonthestatisticaldiscrepanciesofthekoreanbalanceofpayments
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