“Competitiveness and Economic Growth. An Analysis of Mexico and Korea.” Crecimiento Económico y Competitividad. Un Análisis de México y Corea. Dr. Alejandro Díaz-Bautista Professor of Economics and Researcher at El Colegio de la Frontera Norte (COLEF) Profesor Investigador del Colef. Miembro del SNI Conacyt. adiazbau@hotmail.com Prepared for the Conference at the Faculty of Economics, University of Colima, April 29-30, 2010. Colima, Colima, Mexico. Preparado para la Conferencia en la Facultad de Economía de la Universidad de Colima, para los estudios en Cuenca del Pacífico en la Universidad de Colima, los días 29 y 30 de abril de 2010.

1. “ Competitiveness and Economic Growth. An Analysis of Mexico and Korea.” “ Crecimiento Económico y Competitividad. Un Análisis de México y Corea.” Dr. Alejandro Díaz-Bautista Professor of Economics and Researcher at El Colegio de la Frontera Norte (COLEF) Profesor Investigador del Colef. Miembro del SNI Conacyt. adiazbau@hotmail.com Prepared for the Conference at the Faculty of Economics, University of Colima, April 29-30, 2010. Colima, Colima, Mexico. Preparado para la Conferencia en la Facultad de Economía de la Universidad de Colima, y para los estudios en Cuenca del Pacífico y APEC en la Universidad de Colima, los días 29 y 30 de abril de 2010.

16. Swift Crisis Resolution and Economic Recovery Cleaning up Non-performing Loans Accelerating Liberalization Improving Corporate Governance Expanding Social Safety Net - Early Graduation from the IMF Program - Foreign Reserves of more than USD 200bn in 2004 Improved External Positions - GDP Growth: -6.7% (1998)  10.7% (1999) - Unemployment: 6.8% (1998)  3.5% (2004) Rapid Economic Recovery - Debt-equity Ratio: 396% (1997)  182 (2002) - No. of Banks: 33 (1997)  20 (2001) Stronger Corporate and Financial Sector

26. Economic Growth, Poverty and Inequality in Korea Economic Growth and Absolute Poverty in Korea

35. Composition of Korean Overseas Direct Invesment 2004

36. Composition of Korean ODI in Manufacturing in LAC, 2004

37. Samsung Tijuana Park Case Brief Introduction - Samsung Tijuana Park: Three Plants 1) Samsung Mexicana (Samex): Television sets, computer monitors, cellular phones and computers. 2) Samsung Display Interface Mexicana (SDIM): Cathode-ray tube (CRT) monitors. In 1997, the plant began to produce Liquid Crystal Display (LCD) monitors. 3) Samsung Electro-Mecánicos Mexicana (SEMSA) Electronic Components for televisions, monitors.

38. Samsung Tijuana Park Case Major Features - Investment amount: Over US$ 200 million. Samsung Group owns 100% of stocks. - Employment: 6,000 full-time employees. - Operation rate: 96.2%. - Sales: 2,059 million US$ - Production: Monitor, 4 million sets (CDT models: 5, LCD models: 9); TV production, 3 million sets (TV models: 90); Assembled PCs, 100 thousand; HHP production, 900 thousand.

39. Samsung Tijuana Park Case Electronics initiated its SAMEX as a Maquiladora to assemble television sets in 1988. Aimed entirely at the North American Market. First Investment Capital: U$3,700 million 2) After NAFTA, its target market from North America to Mexico. 3) In 1994, Samsung Group inaugurated Samsung Tijuana Park 4) Integrate components and finished goods vertically. 5) Over 200 million US$ was invested. Until 2001, five new plants and renovation continued. How Successful? 1) 30 % to Mexico Market in 2003. 2) Turnover rates only 3% in 2003 3) No labor union yet.

46. 2006 GDP per capita* $6,621 $3,308 $27,992 $20,572 $8,065 $ $8,862 Economic Growth in Asia *2006 GDP per capita is shown as PPP (purchasing power parity in constant 2000 international $) Source: World Bank WDI

47. 2006 GDP per capita* Economic Growth in Latin America, Mexico, & the Caribbean $13,652 $7,826 $10,939 $6,886 $9,967 $5,725 $6,485 $8,862 *2006 GDP per capita is shown as PPP (purchasing power parity in constant 2000 international $) Source: World Bank WDI

48. Economic Growth in the U.S. and Canada 2006 GDP per capita* $30,278 $38,165 $8,862 *2006 GDP per capita is shown as PPP (purchasing power parity in constant 2000 international $) Source: World Bank WDI

49. (Var. % anual) Fuente: INEGI y Us Federal Reserve. ¿ Podemos ver en la recesión, la caída de la producción industrial en México y los Estados Unidos?

54. The Global Competitiveness Index 2009-2010 Top 20 and selected economies

60. “ Competitiveness and Economic Growth. An Analysis of Mexico and Korea.” “ Crecimiento Económico y Competitividad. Un Análisis de México y Corea.” Dr. Alejandro Díaz-Bautista Professor of Economics and Researcher at El Colegio de la Frontera Norte (COLEF) Profesor Investigador del Colef. Miembro del SNI Conacyt. adiazbau@hotmail.com Prepared for the Conference at the Faculty of Economics, University of Colima, April 29-30, 2010. Colima, Colima, Mexico. Preparado para la Conferencia en la Facultad de Economía de la Universidad de Colima, para los estudios en Cuenca del Pacífico en la Universidad de Colima, los días 29 y 30 de abril de 2010.