Table of Contents I.
Executive Summary.....................................................................................1 Overview of the Project ...........................................................................................................1 From Brunei ….....................................................................................................................1 …to Shanghai.......................................................................................................................1 Summary Objectives of the Report and Basic Outline of Method ..........................................2 A New Emphasis on Transformation...................................................................................3 Summary of Analytical Conclusions:......................................................................................4 Spanning the four domains:..................................................................................................5 Within the domain of trade and cross-border investment:
...................................................6 Within the domain of banking and financial policies:..........................................................7 Within the domain of pro-competitive market policy and legal regime:.............................7 Within the domain of fiscal policy and fiscal activities of government:..............................8 II. The Fundamentals: Definition and Policy Underpinnings of the New Economy......................................................................................................10 What is the “New Economy”?
...............................................................................................10 The Knowledge-Based Economy and the New Economy.....................................................12 What Are the Policy Fundamentals?......................................................................................15 Fiscal Policy and Fiscal Activities:....................................................................................15 Banking and Financial Structure:.......................................................................................17 Trade and cross-border investment policies:......................................................................18 Competition policy and legal regimes:...............................................................................20 Synergies among policy domains:......................................................................................21 Conclusion .............................................................................................................................22 III.
The Evidence: Benefits and Challenges of the New Economy ...................23 Introduction............................................................................................................................23 Information and Transformation; Dot-Com Bust, But Not the New Economy.....................23 Evidence on Productivity Growth and the Use and Diffusion of ICTs .................................25 Review of the Literature:
The US experience precipitates research ….............................26 …and raises similar questions for other economies...........................................................27 ICTs are the fad now, but research on productivity growth goes back a long way............29 Aggregate and global benefits of the New Economy ............................................................30 Time-series analysis of efficiency gains:...........................................................................31 Broad analysis of policy reforms:.......................................................................................31 Economic gains through trade liberalization, particularly in services:..............................33 Sub-Regional Trading Arrangements .................................................................................36 IV.
Case Studies of the New Economy in APEC............................................38 Restructuring and Transformation.........................................................................................38 Conclusions About Transformation ...................................................................................49 Transformation and Policy.....................................................................................................49 - i -