We identify whether open economic policy has played a key role in facilitating economic development in Korea, and if so, through what mechanism the openness has induced Korean economic performance by applying modern economic theories and empirical analyses. Many studies that deal with the relationship between openness and Korean economic development tend to assess it from the perspective of economic history, lacking systematic approaches in explaining causal relationship based on theoretical and empirical analyses. Thus, this collection of individual study, incorporating forceful theories and empirical evidence into research, supplements the existing literature and open a gate for further researches. We also discuss the policy implications of the findings at the end of each chapter.

Preface
Executive Summary

Chapter 1 Selective Industrial Policy and Credit Constraints: Implications of Korea’s Heavy and Chemical Industry Promotion Policy
　Section 1 Introduction
　Section 2 Trade Policy under Monopolistic Competition and Credit Constraints
　Section 3 Korea’s Heavy Chemical Industry Promotion Policy: Was It Premature?
　Section 4 Policy Implications and Conclusion
　References
　Appendix

Chapter 2 Export and the Advancement of Establishment‘s Product Composition
　Section 1 Introduction
　Section 2 Data and Basic Analysis
　Section 3 Changes in Export and Establishment’s Product Composition
　Section 4 Product Composition Changes and Creative Destruction
　Section 5 Impact of Exports on the Average Quality of Establishment’s Products
　Section 6 Summary and Policy Implications
　References

Chapter 3 Impact of Trade Liberalization and Dynamic Changes in Export Products on Productivity Growth and Structural Transformation in Korea
　Section 1 Introduction
　Section 2 Theoretical Background
　Section 3 Empirical Analysis
　Section 4 Trade Liberalization and Dynamic Changes in Export Products
　Section 5 Conclusion
　References
　Appendix

Chapter 4 The Role of Openness in Economic Growth: Focusing on the Resource Allocation Efficiency Effect
　Section 1 Introduction
　Section 2 Literature Review
　Section 3 Theoretical Model
　Section 4 Quantification of the Model
　Section 5 Efficiency Gains from Openness in Resource Allocation
　Section 6 Conclusion and Policy Implications
　References
　Appendix

Chapter 5 The Impact of Trade Openness on Economic Growth Slowdown
　Section 1 Introduction
　Section 2 Identifying the Timing of Growth Slowdown
　Section 3 Comparative Descriptive Statistics
　Section 4 Determinants of Growth Slowdown Timing
　Section 5 Conclusion
　References

ABSTRACT