• Economic Analysis
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• v.17 no.4
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• pp.30-51
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• 2011

Since the previous studies on the effects of trade liberalization implicitly assume that trade liberalization affects economic performance only in any point in time, they inevitably are static. Static evaluations fail to account for cumulative dynamic effects of trade liberalization that affect continuously economic performance. This paper tries to fill this gap of the previous studies in this field, estimating cumulative effects of trade liberalization on economic performance by employing an dynamic version of empirical model. One of important empirical issue is controlling bias from endogeneity. To resolve this problem, this paper employes system GMM that uses lagged first-differences as instruments for level equations and lagged levels as instruments for first-differences equations. It improves upon cross-section estimators because it controls for the potential bias induced by the omission of industry-specific effects and the endogeneity of all regressors. This study investigates the effects of trade liberalization in Korean manufacturing for the period from 1988 to 2005 and finds that cumulative dynamic effects of trade liberalization are present and bigger than static effects.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.61
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• pp.165-190
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• 2014

The purpose of this study is to measure the trade insurance's macroeconomic effects by analyzing the causality between major economic variables(GDP per capita, market interest rate, inflation, unemployment rate, exchange rate) and trade insurance variable. I conducted empirical analyses using First-difference GMM(Generalized Method of Moments), System GMM and Panel-VAR Model, with panel data from 11 countries(Korea, United States, Japan, BRICs, Indonesia, Singapore, Hong Kong, Vietnam) between 1992 and 2011. There are several important findings. Above all, Trade insurance is positively and significantly related to GDP. This results show that trade insurance serves to increase economic growth. In other words, trade insurance leads to economic growth by helping increase GDP per capita. Especially, trade insurance negatively related to unemployment rate, it is for sure that trade insurance contribute to decrease unemployment rate. And trade insurance helps control of inflation. It is also confirmed that trade insurance contributes to price stability, which in turn serves to stabilize the overall economy. And this research finds as uncertainty in the market increases, seen it as increase of exchange rate, increasing trade insurance supply is stabilize the exchange rate.

• The Korean Journal of Financial Management
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• v.25 no.4
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• pp.183-212
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• 2008

The purpose of this paper is to analyze the efficiency change and determinants of the korean non-life insurance companies. we use DEA (Data Envelopment Analysis) model to measure company efficiency change and use GLS, Tobit model, FIixed effect model, Random effect model, GMM to measure efficiency determinants. we utilize ten non-life insurance companies in korea and the panel data for five from 2001 to 2005. The empirical results show the following findings. First, technical efficiency shows that approximately 15.5% of inefficiency exists on the non-life insurance companies and it reveals that the cause for technical inefficiency is due to scale inefficiency. Second, Dea Window results show that the stable dissimilarity by standard deviation, LDP of CCR. Third, the results of efficiency determinants show that increase efficiency is depend on the premium income and real estates.

• Korea Trade Review
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• v.42 no.1
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• pp.217-236
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• 2017

The purpose of this study is to analyze the effects of IFDI on the regional growth of 16 subregions in Korea during 2000~2014 by applying the System GMM. As a result of the analysis, the IFDI flowed into Korea has showed a positive effect on regional economic growth such as capital formation, job creation, and export expansion. but import has showed a negative effect. and Human capital has showed a positive effect but not statistically significant. meanwhile, IFDI which was flowed in the regions has showed a positive effect on the GRDP of DK regions including Daegu and Kyongbuk, while the GRDP of Metropolitan including Seoul, Incheon and Gyeonggi and BUK regions including Busan, Ulsan, Kyongnam has showed a negative effect. there were observed similar trends in the complementarities between IFDI inflows and human capital. This study has confirmed that IFDI flows into Korea are an important factor for regional growth, but the growth effect on GRDP in the region differs according to regional characteristics. Therefore, this study has suggested that it is urgent to reorganize the industrial structure along with the IFDI attraction strategy suitable for regional characteristics in order to expand the growth effect of IFDI flowed into the regions.

• The Korean Journal of Financial Management
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• v.24 no.1
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• pp.109-147
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• 2007

According to the perspective of capital structure theory, we analyzed the dynamism of the capital structure determinants by using panel data of 244 KOSDAQ firms based on two-step GMM system methodology suggested by Blundell Bond(1998). This dynamic methodology had not been used to analyse capital structure determinants in Korea. In the dynamic model of capital structure, profit had negative effect on the book leverage and market leverage, which meant supporting pecking order theory. Growth opportunity (MBR) affected negatively to the market leverage. For the determinants of leverage, earnings volatility had significantly positive effect on KOSDAQ 50 firms. KOSDAQ and KOSDAQ 50 firms had the target leverage. The adjustment speed in KOSDAQ firms was 0.4958 on the book leverage, it was faster than in KOSDAQ 50 firm's 0.2863 on the book leverage and the adjustment speeds for the market leverage were 0.7651 for KOSDAQ firms and 0.5643 for KOSDAQ 50 firms. There was difference in adjustment cost between KOSDAQ firms and KOSDAQ 50 firms.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.32 no.6B
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• pp.390-401
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• 2007

This paper is to estimate and analyze the price elasticities of demand for mobile calls. We used the data for the period from January 2000 to December 2005 on a monthly basis. Data used are call minutes to mobile-originating(ML+MM), tariff for dispatch of fixed and mobile calls($P_L,P_M$), income(Y), and subscriber for mobile(N). In order to provide robust estimates of price elasticities, we have used two different econometric models. One is a Dynamic model which includes a lagged dependent variable and so can differentiate between long-un and short-run price elasticities using the Generalized Method of Moments(GMM). The other is a Box-Cox transformation model which is one of the most useful methods. Box-Cox transformation model shows that elasticity changes with the lapse of time. The results are as follow : Not including the price indices for land-originating, the estimate is overestimated otherwise. In Box-Cox transformation case, price elasticity had been steadily declining. And this result shows that mobile services had been changed necessities increasingly in Korea.

• Economic Analysis
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• v.25 no.3
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• pp.1-29
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• 2019

This paper examines the impact of a dual labor market structure on labor productivity using unbalanced panel data from 29 OECD member countries between 1990 and 2015. By applying a variety of regression models on the panel data (e.g., a pooled regression, a fixed effects model and a GMM), we explore how changes in worker-type composition among temporary, permanent and self-employed workers contribute to productivity growth. While it appears that our results differ slightly, depending on the econometric models, overall an increase in the share of permanent workers leads to a relatively higher increase in productivity growth. On the other hand, it is also seen that the effects of the share of temporary workers on labor productivity are considerably lower than that of permanent and self-employed workers. To sum it up, our findings indicate that an increase in temporary workers could have an adverse effect on labor productivity.

• The Korean Journal of Financial Management
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• v.15 no.1
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• pp.329-350
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• 1998

이 논문에서는 자산의 수익률과 공통요인이 시간가변적 변동성을 갖는 경우의 APT를 검증하고자 시도하였다. 이를 위하여 1980년 1월부터 1995년 12월까지의 17개업종별 포트폴리오 수익률로부터 주성분분석에 의하여 4개의 공통요인을 추출하였다. (이중 첫 번째 요인은 동일가중 시장수익률과 거의 1에 가까운 상관성을 갖고 있으므로, 추출된 첫 번째 요인 대신에 시장수익률을 사용하였다.) 17개 업종별 포트폴리오에 대한 ARCH모형을 추정한 결과, 12개 포트폴리오의 수익률이 조건부 이분산성을 보이고 있다. 또 네 개의 공통요인 중 시장수익률을 포함한 3개의 요인은 뚜렷한 조건부 이분산성을 보이고 있다. 따라서 요인위험--즉, 공통요인에 대한 개별자산의 민감도$({\beta}_{ij})$--은, 개별자산과 공통요인의 상관계수가 일정하다고 가정하여, ARCH모형에 의해 측정된 자산 및 공통요인의 시간가변 표준편차로부터 계산되었다. 이와 같이 계산된 요인위험에 대하여 어느 정도의 위험프리미엄이 주어지고 있는가는 일반화 적률법(GMM)에 의하여 추정하였다. 그 결과, APT의 추정에 사용된 4개의 공통요인 중 시장수익률을 포함한 3개의 요인에 대하여 유의한 위험프리미엄이 추정되었다.

• KDI Journal of Economic Policy
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• v.28 no.1
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• pp.117-144
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• 2006

This study is to analyze the existence of the real buffer effect that reflects the effect of beginning-of-period inventory stocks effect on the demand for fixed investment, and the financial buffer effect indicates the substitution effect between end-of-period inventory stock and the source of financing for fixed investment. I use panel data of 361 Korean listed non-financial firms during 1990-2003. After the crisis, it also observed whether the relationship between inventory stocks and fixed investment has altered or not. I review the theoretical connection between inventory stock and fixed investment through the paper by Bo(2004) and estimate the investment model by the method of GMM-SYS. The results show negative relation between end-of-period inventory stock and fixed investment in the whole period and each period classified, also it confirms that the relation between fixed investment and end-of-period investment is significantly negative. It can be interpreted through two aspects that firms not only use inventory stock as a buffer in response to unexpectedly high demand, but also utilize inventory stock as a source of financing for fixed investment. The results imply that firm's decision-making is much correlated with production-and-inventory stock adjustment, decision-making about fixed investment, and decision-making about financial affairs.

• Journal of Technology Innovation
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• v.21 no.2
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• pp.169-197
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• 2013

Despite many theoretical and empirical studies, general causality between IPRs system, firm technological innovation and financial performance is not clear. This study notices that the core factor to create financial performance is different by each industry. The study analyzed the effect of IPRs system on innovation and economic growth targeting 3 industries; pharmaceutical industry to which the basic track of creating performance is applied (strengthening IPRs${\rightarrow}$increasing R&D input/output${\rightarrow}$increasing sales); semiconductor industry where the relationship between stronger IPRs and R&D input/output is weak; and shipbuilding industry which has weak correlation between R&D and sales. It used panel data for 15 years since TRIPs when the patent institution in Korea reached up to the level of advanced countries, and applied the dynamic regression model which estimates the fixed effect model with difference-GMM. As a result, stronger IPRs increased R&D input/output, and financial performance in pharmaceutical industry, but has no influence on semiconductor and shipbuilding industries. That is, it is necessary to customize the construction of system and policy for strengthening IPRs by each industry, and unitary strengthening or weakening may have no significant impact on financial performance improvement in specific sectors.