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Popular Reaction to the Intervention by the IMF in the Korean Economic Crisis

Author

Listed:
  • Bernd Hayo

    (University of Essen and ZEI University of Bonn)

  • Doh Chull Shin

    (University of Missouri)

Abstract

The International Monetary Fund (IMF) has played an important role in restructuring the Korean economy over the past three years. Relying upon survey data collected in 1998 and 1999, this paper explores the role of the IMF in Korea, as perceived by its citizens. In the eyes of the Korean people, the IMF helped their economy to recover from the crisis. However, those Koreans who experience a decline in their income, are critical of the IMF intervention in their economy. Finally, our analysis of the public attitude data reveals that the pro-IMF orientations among the Korean people have little to do with their support for a market- oriented reform program.

Suggested Citation

  • Bernd Hayo & Doh Chull Shin, 2002. "Popular Reaction to the Intervention by the IMF in the Korean Economic Crisis," Development and Comp Systems 0204001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0204001
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    References listed on IDEAS

    as
    1. Hayo, Bernd, 1999. "Knowledge and Attitude Towards European Monetary Union," Journal of Policy Modeling, Elsevier, vol. 21(5), pages 641-651, September.
    2. Jong‐Wha Lee & Changyong Rhee, 2002. "Macroeconomic Impacts of the Korean Financial Crisis: Comparison with the Cross‐country Patterns," The World Economy, Wiley Blackwell, vol. 25(4), pages 539-562, April.
    3. Lance Taylor, 2001. "Capital Market Crises: Liberalization, Fixed Exchange Rates and Market-Driven Destabilization," Palgrave Macmillan Books, in: Ha-Joon Chang & Gabriel Palma & D. Hugh Whittaker (ed.), Financial Liberalization and the Asian Crisis, chapter 3, pages 21-39, Palgrave Macmillan.
    4. International Monetary Fund, 1998. "Do IMF-Supported Programs Work? A Survey of the Cross-Country Empirical Evidence," IMF Working Papers 1998/169, International Monetary Fund.
    5. Chang, Ha-Joon & Park, Hong-Jae & Yoo, Chul Gyue, 1998. "Interpreting the Korean Crisis: Financial Liberalisation, Industrial Policy and Corporate Governance," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 22(6), pages 735-746, November.
    6. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    7. Chang, Ha-Joon, 1998. "Korea: The misunderstood crisis," World Development, Elsevier, vol. 26(8), pages 1555-1561, August.
    8. John Williamson, 1994. "The Political Economy of Policy Reform," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 68, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bernd Hayo & Doh Shin, 2002. "Mass Attitudes Toward Financial Crisis and Economic Reform in Korea," Development and Comp Systems 0205003, University Library of Munich, Germany.
    2. Martin S. Edwards, 2009. "Public support for the international economic organizations: Evidence from developing countries," The Review of International Organizations, Springer, vol. 4(2), pages 185-209, June.
    3. Ali M. Kutan & Yaz Gülnür Muradoğlu & Zhong Yu, 2016. "Worldwide impact of IMF policies during the Asian crisis: who does the IMF help, creditors or crisis countries?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 19(2), pages 116-147, June.
    4. Greß, Stefan, 2004. "Competition in Social Health Insurance: A Three-Country Comparison," IBES Diskussionsbeiträge 135, University of Duisburg-Essen, Institute of Business and Economic Studie (IBES).
    5. Ali Kutan & Brasukra Sudjana, 2003. "Investor reaction to IMF actions in the indonesian financial crisis," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(3), pages 181-190.
    6. Dumitriu Ramona & Stefanescu Razvan, 2020. "Improving IMF’s Reputation in the Context of COVID-19," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 230-238.
    7. Martin Edwards, 2009. "Public support for the international economic organizations: Evidence from developing countries," The Review of International Organizations, Springer, vol. 4(2), pages 185-209, June.

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    More about this item

    Keywords

    IMF; Korea; policy reform; financial crisis; public opinion;
    All these keywords.

    JEL classification:

    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • F3 - International Economics - - International Finance

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