• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.8
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• pp.4895-4900
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• 2014

This study examined the impact of Government-ownership of banks on the firm size using South Korean data. The impact of Government ownership of banks as both the largest lender of government banks and the bank loan dependency of firms on government-ownership bank were measured. Empirical models considering endogenous problems and various effects of firm size were developed. All results in this paper showed that government-ownership of the main banks might have a relationship with the smaller firms. In addition, the bank loan dependency of firms on government-ownership banks might have effects on the firm size. A higher loan dependency of firms on government-owned banks resulted in smaller firms. This study used micro firm level data to analyze, from several perspectives, the relationship between government-owned banks and firm size. The existing studies go as far as inferring the effects of government-owned banks showing theoretical evidence, performing surveys, or using international comparison data. This study is differentiated from existing studies in that it analyzed in a direct manner the effects of the government-owned banks on both the firm size. This study provides insights into the privatization of government-owned banks.

• Korean Business Review
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• v.11
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• pp.277-293
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• 1998

The purpose of this study is to analyse the overall relationship between the advertisement expenses and the two major indicies of business performance, that is, the total amount of sales and the discipline have contrasted the expenses for commercial advertisement with the total amount of sales or with the business performance, respectively, utilizing data on a specific product observed through 3 to 5 years. This study attempts to enlarge the scope of observation and the content of analysis. In order to attain the purpose of this study, the rate of increase in the advertisement expenses is taken as the independent variable and the two major indicies of business performance, the total amount of sales and the resultant interest, as the dependent variables. Business companies or firms which have continually been listed on the board of Korea Stock Exchange for 14 years, from 1982 to 1995, were grouped into four major business categories; 1)Food and beverage industries, 2)Fiber, clothings, and leather industries, 3) Medicine, chemistry, oil, coal, and rubber industries, and 4) Assembled mechanics and metallurgy, machinery, and maintenance industries. Utilizing the KIS-DATA, compiled by Korea Credit Evaluation, Ltd., 30 to 40 samples of business companies or firms were randomly selected from each category. Finally 125 samples were selected and put into regression analyses and follow-up tests by appropriate statistical models, in order to verify if there were any noticeable correlations. The final result obtained through the afore-mentioned research method shows that the amount of advertisement expenses has strong correlations with the amount of sales and the resultant interest. Viewed by business category, in the case of fiber, clothings, and leather industries, the relationship turned out to be significant only with the rate of increase in the total amount of sales, while, in the case of food and beverage industries, the rate of increase in the total amount of sales showed a negatively significant correlations.

• 한국노년학
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• v.39 no.2
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• pp.347-362
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• 2019

This study aimed to investigate the association between social support and the change of depressive symptoms and its difference by gender among Korean Baby Boomer. We used the Korean Longitudinal Study of Aging (KLoSA) 5th (in 2014) and 6th waves (in 2016). Samples were Korean Baby Boomer (born 1955 to 1963) who have spouse and children(N = 1,210). Dependent variable was depressive symptoms and independent variables were four social support variables (spousal relationship satisfaction, parent-child relationship satisfaction, frequency of social contact, and number of participation groups). Interaction variables between social support and gender were also included in the model. Hierarchical regression analysis with the lagged dependent variable was performed. Results showed that the higher the satisfaction of spousal relationship and the satisfaction of parent-child relationship, the less the depressive symptoms increased. All interaction variables were not significant. These findings mean that the support from the spouse and the child is helpful in lowering depressive symptoms, and the associations between social support and depressive symptoms are not different by gender among Baby Boomer. It implies that interventions for enhancing family relationships, especially spousal relationship and parent-child relationship, may be useful to reduce depressive symptoms among Korean Baby Boomer.

• KDI Journal of Economic Policy
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• v.12 no.4
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• pp.71-95
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• 1990

The purpose of this paper is to estimate the revenue function of the personal income tax of Korea. Unlike the traditional approach employing the data adjustment, this paper explicitly includes the explanatory variables of the tax rate or schedule in the revenue function and further estimates the functions by income sources such as labor, interest, global, and dividend incomes. One of the main findings is the GNP elasticity of the combined personal income tax is around 1.2 when evaluated on the basis of the estimates of the GNP elasticities of tax revenue from respective income sources, which is somewhat smaller than those in the previous studies. Another interesting result is that the GNP and interest rate elasticities of the interest income, are found around one and .15 respectively, as expected. Also, the estimate of the tax-free income coefficient is significantly negative in the labor income tax revenue function.

• Journal of Korea Port Economic Association
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• v.27 no.3
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• pp.1-12
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• 2011

The effect of real exchange rate changes on trade balance is called the J-curve effect. That is, after real depreciation, the trade balance will deteriorate in the short run and improve in the long run. Specially, import and export prices respond with little or no decline in volume. Assuming a zero initial trade balance and dominance of the exporter currency in invoicing trade contracts, the trade balance continues to deteriorate in the medium term. Over time, the relative price-induced volume effect comes to dominate the price effect and the trade balance improves. This pattern of the trade balance adjustment is commonly referred to as the J-curve effect. This study examines the effects of changes in the exchange rate on the Korean port trade balance to China. The empirical results indicate that whilst there is J-curve effect in the short-run, but in the long-run, the real depreciation of the Korean won has positive impact on port trade balance to China.

• International Area Studies Review
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• v.22 no.4
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• pp.19-35
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• 2018

This paper is to estimate the total factor productivity(TFP) in the Korean manufacturing and service industries during the period 1975:1-2016:4 using the stochastic frontier analysis model. In order to analyze the determinants for the total factor productivity the paper estimates the industry-specific determinant elasticities of TFP using the autoregressive distributed model. The industry-specific determinants, which reflect the industrial structure and properties include markup, the ratio of capital to labor(KL), and the ratio of foreign intermediate goods (FIG) to industrial output. The average value for total factor productivity growth was estimated to be 0.0199 in manufacturing and 0.0063 in the service industry. The markup and KL elasticities of TFP were estimated to be 2.481 and 0.651 in manufacturing respectively and -1.403 and 0.042 in the service industry respectively. The empirical results suggest that the industrial markup and the ratio of capital to labor have had decisive effects on the changes in the total factor productivity in the Korean manufacturing and service industries during the period 1975:1-2016:4.

• KDI Journal of Economic Policy
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• v.35 no.2
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• pp.71-105
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• 2013

Now that fiscal soundness is increasingly important influenced by the euro area fiscal crisis, early budget execution has been under the spotlight as a tool for economy control, other than typical expansionary method, such as supplementary budget. Basically, early budget execution is a fiscal policy instrument that reponses to economic fluctuations through modifying the inter-temporal allocation of fiscal expenditure within budget, without affecting fiscal soundness. This study empirically examines how effective the intert-temporal reallocation of fiscal expenditure is in economy control. Using Korea's Consolidated Fiscal data, the size of inter-temporal reallocation of fiscal expenditure is defined as changes of fiscal expenditure for one year excluding seasonal factors and used to explain real economic growth rate, a dependent variable. The result shows that the macroeconomic effect of the inter-temporal reallocation turns out meaningful in general, though some policy time lag exists. Meanwhile, a simulation using macroeconomic model finds that overall effect on economic growth is not large because increase in fiscal expenditure allocation at a certain point of time is canceled by the opposite direction within the same fiscal year. However, the inter-temporal reallocation is found to reduce volatility of key macroeconomic variables so as to contribute to partially stabilizing macroeconomy. In particular, such effect of economic stabilization seems to be highly apparent at the time of financial crisis, but not very noticeable in normal economic cycle.

• Journal of Energy Engineering
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• v.22 no.3
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• pp.245-249
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• 2013

This paper attempts to estimate the kerosene demand function in Korea over the period 1981-2012. As the kerosene demand function provides us information on the pattern of consumer's kerosene consumption, it can be usefully utilized in predicting the impact of policy variables such as kerosene price and forecasting the demand for kerosene. We apply least absolute deviations and least median squares estimation methods as a robust approach to estimating the parameters of the kerosene demand function. The results show that short-run price and income elasticities of the kerosene demand are estimated to be -0.468 and 0.409, respectively. They are statisitically significant at the 1% level. The short-run price and income elasticities portray that demand for kerosene is price- and income-inelastic. This implies that the kerosene is indispensable goods to human-being's life, thus the kerosene demand would not be promptly adjusted to responding to price and/or income change. However, long-run price and income elasticities reveal that the demand for kerosene is price- and income-elastic in the long-run.

• The Korean Journal of Financial Management
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• v.21 no.1
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• pp.205-229
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• 2004

The deviation from put-call parity condition may affect market prices since it provides an opportunity of arbitrage to many participants. This study uses the KOSPI200 index data and examines the interdependence among spot, futures, and options contracts by examining whether the deviations from the parity have significant roles in price formation. Whenever the parity condition is violated, the deviation tends to affect the prices significantly in most markets. The results show that positive values of deviation are associated with the fall of the prices in the spot and put option contracts and the rise of the call option premiums, thus decreasing the deviations. Also, the decreasing impact of deviations lasts for at Beast an hour in most markets. Futures prices, however, do not show clear relations with the deviations, which suggests the possibility that futures markets lead other markets.

• Management & Information Systems Review
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• v.32 no.4
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• pp.189-207
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• 2013

Using high-frequency data for 2 years, this study investigates intraday lead-lag relationship between stock index and stock index futures markets in Korea and China. We found that there are some differences in price discovery and volatility transmission between Korea and China after the stock index futures markets was introduced. Following Stoll-Whaley(1990) and Chan(1992), the multiple regression is estimated to examine the lead-lag patterns between the two markets by Newey-West's(1987) heteroskedasticity and autocorrelation consistent covariance matrix(HAC matrix). Empirical results of KOSPI 200 shows that the futures market leads the cash market and weak evidence that the cash market leads the futures market. New market information disseminates in the futures market before the stock market with index arbitrageurs then stepping in quickly to bring the cost-of-carry relation back into alignment. The regression tests for the conditional volatility which is estimated using EGARCH model do not show that there is a clear pattern of the futures market leading the stock market in terms of the volatility even though controlling nonsynchronous trading effects. This implies that information in price innovations that originate in the futures market is transmitted to the volatility of the cash market. Empirical results of CSI 300 shows that the cash market is found to play a more dominant role in the price discovery process after the Chinese index started a sharp decline immediately after the stock index futures were introduced. The new stock index futures markets does not function well in its price discovery performance at its infancy stage, apparently due to high barriers to entry into this emerging futures markets. Based on EGAECH model, the results uncover strong bi-directional dependence in the intraday volatility of both markets.