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Overvaluation of the Real Exchange Rate and Export‐related Loans in Korea
Author(s) -
Wang Yen Kyun
Publication year - 1994
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/j.1467-8381.1994.tb00014.x
Subject(s) - economics , exchange rate , monetary economics , investment (military) , international economics , politics , political science , law
This paper discusses exchange rates, finance for exports and plant and equipment investment for export industries in Korea. The real effective exchange rate of the won was substantially overvalued in 1991 using 1985 as the base year. In addition, the amount of low interest export loans has dropped substantially since 1987. These factors are some of the most important reasons for the sluggish growth of Korean exports in recent years.