• International Area Studies Review
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• v.16 no.1
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• pp.3-27
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• 2012

This paper adopts recently developed panel unit root test that is cross-sectionally robust. Cointegration test is also used to find whether regional house prices are in line with gross regional domestic production (GRDP) in the long run in Korea during 1989-2009. Based on the panel VECM and the panel ARDL models, we examine causal relationships among the variables and estimate the long-run elasticity. We find evidence of cointegration and bidirectional causal relationships between regional house prices and GRDP. The results of long-run estimates, using both fixed effect and ARDL models, show that house prices positively and significantly influence on the GRDP and vice versa. Together with these results, the findings of ARDL-ECM imply that there exists a long-run equilibrium relationship between house prices and regional economic variables even if there is a possibility of short-run deviation from its long-run path.

• International Commerce and Information Review
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• v.14 no.3
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• pp.307-322
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• 2012

The purpose of this paper is to examine determinants of export to the East Asia region, using panel unit root, panel cointegration framework, panel VECM (vector error correction model), panel FMOLS (fully modified OLS). Different panel unit root tests confirm that the data series are integrated processes with unit roots. When applying cointegration tests to long-run effect for aggregate panel data, a primary concern is to construct the estimators in a way that does not constrain the transitional dynamics to be similar among different countries of the panel. The regression equations are estimated by various panel cointegration estimators. The panel data causality results reveal that exchange rates has unidirectional effects on export and GDP, and there exists bidirectional causality between export and GDP. Also, the results from the panel FMOLS tests overwhelmingly reject the null hypothesis of zero coefficient. The panel cointegrating vectors show that the export has positive relationship with the GDP and ODI (overseas direct investment).

• Journal of the Korean Regional Science Association
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• v.33 no.3
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• pp.3-19
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• 2017

The purpose of this paper is to analyze the impacts of regional industrial diversity on regional business cycle response to national volatility. We employed mean group and pooled mean group estimators of panel vector error-correction models in order to control unobserved heterogeneity of the port cities, such as Pusan, Ulsan and Incheon. The results show that in various industrial regions, short-term fluctuations in the unemployment rate are small compared to other regions. On the contrary, long-term volatility of manufacturing production index is low in those regions.

• Korea Trade Review
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• v.43 no.4
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• pp.155-175
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• 2018

This study estimates the technical efficiency and total factor productivity(TFP) of and analyzes the relationship between TFP and exports for Korean manufacturing companies from 2000 to 2016. Specially, TFP is decomposed into Technical Change(TC), Technical Efficiency Change (TEC), and Sale Effect(SE), and compared between large and small enterprises. First, in the case of technical efficiency, the Korean economy has been very vulnerable to external shocks, such as the sharp decline following the 2008 financial crisis. The efficiency of the electronics, automobile, and machinery sectors is low and needs to be improved. In addition, the technological efficiency of large enterprises is higher than that of SMEs in most manufacturing sub-sectors except for non-ferrous metals. In the case of TFP, most changes are due to TC, and the effective combination of labor, capital and the effect of scale have little effect, suggesting that improvement of internal structure is urgent. In addition, volatility due to the impact of the financial crisis in 2008 was much larger in SMEs than in large companies, so external economic impacts are more greater for SMEs than large enterprises. The relationship between TFP decomposition factors and exports shows that TC has a positive effect only on exports of SMEs. Therefore, in order to increase exports, in the case of SMEs, R&D support to promote technological development is needed. In the case of large companies, it is necessary to establish differentiated strategies for each export market, competitor company, and item to link efficiency and scale effect of exports.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.12
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• pp.574-580
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• 2019

In this paper, the economic performance of the Jeju Free International City and the Free Economic Zone is investigated using statistical testing and the difference in differences (DID) model with data on foreign direct investment (FDI), gross regional domestic product (GRDP), and employment-to-population ratio (EPR). The relationships among FDI, GRDP, and EPR are also investigated using the panel vector error-correction model on the regional data. The compound average growth rate of actual investment, and the ratio of FDI received to FDI declared in the capital region were higher than in the non-capital region. For the growth and relative volume of FDI received, seven regions out of 16 were found to be low in growth and small in relative volume. The results of statistical testing showed statistically significant differences in some variables, except for two regions, but DID estimates that determine the pure policy effect of zone designation showed statistical insignificance. On the other hand, the explanatory power among the three variables was found to be quite limited, but it was greater in the cities, provinces, and non-capital region. In summary, it is necessary to establish the FDI inducement mechanism so the inflow of FDI can increase GRDP and EPR.