1. Introduction and Overview
Chin Hee Hahn and Sang-Hyop Lee
Examining Korea’s Growth Performance
China’s Role and Performance of Other Asian Countries
Growth-Promoting Institutions
Corporate Governance Issues and Financial Sector Reforms

PART ONE. Examining Korea’s Growth Performance

2. Postcrisis Growth performance of the Korean Economy:An Empirical Assessment
　China Hee Hahn and Sukha Shin
　Introduction
　Sources of Korean Economic Growth, 1980–2005
　　Methodology and Data
　　Aggregate GDP Growth
　　Per Capita GDP Growth
　　Sectoral Growth
　Evaluating Postcrisis Growth in International Perspective
　　Source of Growth Slowdown after the Crisis
　　Pre- and Postcrisis Growth Performance in the International Context: Descriptive Analysis
　　Regression-based Assessment
　Slowdown in Capital Accumulation and the Rise of China
　Concluding Remarks

3. Plant Growth in Korean Manufacturing:The Impact of Import Competition from China and the OECD Countries
　Chin Hee Hahn
　Introduction
　Import Competition from China and the OECD Countries since the 1990s
　Regression Equation
　Regression Results: Output Growth of Plants
　Growth of Imports from China: Eyeglasses versus Cameras
　Summary and Concluding Remarks

4. Changing Roles of Large Companies in the Korean Labor Market
　Kyoungsoo Choi
　Introduction
　Large Companies as Big Employers
　　Size Distribution of Employment Trend
　　Manufacturing Employment Reduction and Productivity
　Large Companies as Innovators
　　Korea’s Low Labor Productivity
　　Large Productivity Gap between Manufacturing and Services
　　Manufacturing Productivity Catch-up:Large Companies and R&D
　Summary and Conclusion

PART TWO. China’s Role and Performance of Other Asian Countries

5. The Rise of China and Its Consequences for East Asia:Is the Fear of Export Competition Warranted?
　Prema-chandra Athukorala
　Introduction
　Trade Data
　China’s Trade Performance: An Overview
　Competition from China in World Trade
　Competition from China: An Economic Test
　China as a New Export Market
　China’s Import Propensity: An Econometric Test
　Concluding Remarks

6. Globalization and Labor Markets in East Asia
　Sanghoon Ahn, Kyoji Fukao, and Keiko Ito
　Introduction
　Overview of Trade and FDI Pattern in East Asia
　　Intra-regional and External Trade Patterns of the East Asia Region
　　Trade and FDI Patterns of Japan
　　Trade Patterns of South Korea and the ASEAN-4
　　China and Hong Kong’s Trade Pattern and the Role of Foreign Multinationals
　Trends in Labor Markets and International Outsourcing in Japan and Korea
　　Trends in Labor Markets
　　International Outsourcing and Its Impact on Labor Demand in Japan and Korea
　Outsourcing Measures
　Econometric Methodology

PART THREE. Growth-Promoting Institutions

7. Policy Reforms and Economic Growth
　Anne O. Krueger
　What Is Reform?
　Reforms and Growth
　Growth-Promoting Reforms
　Trade Regime Reforms
　Labor Market Reforms
　Conclusions

8 Changes in Labor Quality among Recent Cohorts in Korea
　Dae Il Kim
　Introduction
　Educational Expansion in Korea
　Labor Market Outcomes and the Estimation of Labor Quality
　　Data
　　Labor Market Outcomes
　　Estimation of Cohort Labor Quality
　　Determinants of Cohort Quality
　Concluding Remarks

9. Productivity in Japan, the United States, and the Major E.U. Economies: Is Japan Falling Behind?
　Kyoji Fukao and Tsutomu Miyagawa
　Introduction
　Economic Growth and Productivity Improvement
　The Role of ICT Investment in Economic Growth
　Intangible Assets as Complements to ICT Capital
　Conclusions

PART FOUR. Corporate Governance Issues and Financial Sector Reform

10. Related-party Transactions of Korean Conglomerates:Determinants and Efficiency
　Sungbin Cho and Kyung-Mook Lim
　Introduction
　Overview of the Related Literature
　Related-party Transactions and Regulation in Korea
　　The Nature of Related-party Transactions
　　Regulations on Related-party Transactions in Korea
　Data
　　Ownership Data
　　Transaction Data
　Methodology
　　Calculation of Profitability Deviation
　　Economic Performance, Cash Flow Rights, and Related-party Transactions
　　Is Tunneling Economically Significant? A Back-of-the-envelope Calculation
　Concluding Remarks

11. Types of Capitalism and Employment in Europe
　Marc Goergen, Geoffrey Wood, and Chris Brewster
　Introduction
　Economic Performance and Models of Decision Making
　Accounts of the Relationship between the Firm and Its Stakeholders within the Rational-Choice–
　　Neo-Classical Tradition
　　Type of Legal System
　　Stakeholder Power and Politics
　Alternative Approaches to Stakeholder Rights
　　Institutional Alternatives: The VOC Literature and Regulation Theories
　　Union Power and Politics: The Industrial Relations Tradition
　　Competing Perspectives on Unions and Context
　Data and Methodology
　Findings
　Assessing the Explanatory Value of Different Theses
　Conclusions

12. External Finance and Productivity Growth in Korea:Firm Level Evidence before and after the Financial Crisis
　Sanghoon Ahn, Joon-Ho Hahm, and Joon-Kyung Kim
　Introduction
　Literature Review
　Corporate Investment and Financing Patterns before and after the 1997 Financial Crisis
　　Macro Flow of Funds Analysis
　　Micro Firm Level Analysis
　Regression Analysis and Empirical Results
　　Data and Measurement of Total Factor Productivity
　　External Finance and Value-added
　　External Finance, Capital Accumulation, and R&D Investment
　　External Finance and Total Factory Productivity Growth
　　External Finance and Information Externality
　　External Finance and Industry Restructuring
　Summary and Concluding Remarks

13. The Comparative Features and Economic Role of Mergers and Acquisitions in Japan
　Hideaki Miyajima
　Introduction
　The M&AWave in International Perspective: Are There Factors Unique to Japan?
　　The Combination of Positive and Negative Economic Shocks
　　The Important but Relatively Limited Effect of Deregulation in Japan
　　Improving the Legal Framework for the Corporate Consolidation and Accounting System
　　Changes in the Economic System
　　To What Degree Have Financial Factors Promoted Mergers and Acquisitions?
　The Diversity of M&A Markets
　　Arm’s Length versus Coordinated M&A Markets
　　The Hybridizing Japanese Corporate System and M&As
　Economic Role of M&As
　　M&As and Efficiency of Resource Allocation
　　Do M&As Really Enhance Firm Value? Cumulative Abnormal Return Analysis
　　Negative Effects of M&As
　　　Possible Transfers of Wealth from M&As
　Long-term Performance Effects
　Policy Implications and Conclusion
　　Should M&As Be Promoted? Is the Level of M&A Activity in Japan Still Too Low?
　　Increasing Consolidation and Monopoly
　　Hostile Takeovers and Takeover Defenses