Quantifying the Effects of Higher World Oil Prices on Resource Allocation and Living Standards in an Energy Poor Open Economy: The Case of Korea

摘要

By applying a general multisectoral balance model the author tries to quantify the difficulties of adaptation caused by the price policy of the OPEC to which the industries of countries in want of energy raw materials like South Korea, are subject. He considers various assumptions on the macroeconomic framework, the labour market and the export demand of Korea. Although the numerical results are particularly related to Korea, the generalization of the statements is also applicable to other countries which are short of energy raw materials. (ERA citation 08:033797)