We examine the effects of shocks in the oil market on key macroeconomic variables in small open economies using a dynamic stochastic general equilibrium model with sticky prices and imperfect competition under different monetary policy rules. The numerical solutions show that the types of...

In the presence of preferential trade agreements (PTAs), there are two distinct levels of economic geography-global economic geography (GEG) between a PTA bloc and the world and local economic geography (LEG) between a PTA member and its PTA bloc. Using OECD data, we empirically examine whether...

This study investigates the relationship between trade and economic growth in Korea during 1980-2003. We find Granger causality from imports to Total Factor Productivity (TFP) growth, and the absence of any causal relation between exports and TFP. We then, empirically examine the impact of...

We investigate Granger causality between productivity growth and inflation in Korea using quarterly data for the period 1985Q1--2002Q4. Our results indicate unidirectional Granger causality from productivity growth to inflation. In light of such causality, we estimate the effect of productivity...