• Title/Summary/Keyword: Determinants of Openness

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A Study on the Determinants of Social Welfare: Evidence from Macroeconomics

  • He, Yugang;Feng, Wang
    • The Journal of Industrial Distribution & Business
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    • v.9 no.9
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    • pp.7-14
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    • 2018
  • Purpose - Social welfare is a social insurance system that provides funds and services for all citizens to maximize their life quality. Its ultimate goal is to alleviate social contradictions. Therefore, this paper explores the determinants of social welfare in terms of macroeconomics. Research design, data, and methodology - Based on the vector error correction model, the annual time series from 1990 to 2017 will be used to conduct an empirical analysis. The real GDP, the real income, the inflation and the degree of openness will be treated as independent variables. The input of social welfare will be treated as a dependent variable. These variables will be used to perform the cointegration test and the vector error correction model to explore how the macroeconomic variables affect social welfare both in long run and short run. Result - Via the empirical analysis, it can be summarized that the real GDP, the real income and the degree of openness are the driving determinants to enlarge the social welfare. Conversely, the inflation is the obstructive determinant to reduce the social welfare. Conclusion - The positive and negative determinants of social welfare exist simultaneously, China's government should take macroeconomic regulation and control to balance them to enlarge social welfare.

What Determines the Openness of Korean Manufacturing Firms to External Knowledge? (한국 제조 기업들의 외부지식 활용 결정요인 연구)

  • Moon, Seong-Wuk
    • Journal of Korea Technology Innovation Society
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    • v.14 no.3
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    • pp.405-430
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    • 2011
  • I examine what factors influence a firm's openness to external sources of knowledge in the Korean manufacturing sector. Related literature suggests a firm's appropriability strategy, absorptive capacity, technology entrepreneurship, firm size and industry-level technological opportunities as possible determinants. Using Korean Manufacturing Innovation Survey, I test how these factors influence the degree of openness of Korean manufacturing firm. I find the followings: First, when the appropriability strategy becomes tighter, a firm becomes more open to external sources. Second, when the share of highly educated employees increases, a firm becomes more open. Third, when a firm is a technology entrepreneur, the openness increases. Fourth, a large firm is likely to be more open. Lastly, ample technological opportunities increase the openness. In Korean manufacturing industries, the highly educated employees and technology entrepreneurship are more influential factors for a firm's openness.

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Determinants of Foreign Direct Investment: Evidence from Vietnam

  • NGO, Minh Ngoc;CAO, Huy Hoang;NGUYEN, Long Ngoc;NGUYEN, Thuc Ngoc
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.6
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    • pp.173-183
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    • 2020
  • The paper investigates the determinants of foreign direct investment (FDI) in Vietnam in 2000-2019 period. This study uses difference Generalized Methods of Moments (GMM) and Pooled Mean Group (PMG) to analyse panel data officially provided by General Statistical Office of Vietnam. The results show that market size impacts positively significant on FDI attraction: 1% -1.45% (PMG) and 1% -1.25% (GMM). Besides, some other factors have positive influences as labor force, macroeconomic policy, macroeconomic stability and skilled labor. Meantime, the trade openness negatively affects FDI inflows in the short-term, while not being statistically significant in the long-term. Moreover, economic shocks often have a negative impact on FDI inflows. The findings of this study lead to the following recommendations. First, authorities should pay special attention to encourage economic growth rate in Vietnam to expand market size because this is the first priority of foreign investors. Second, authorities need to continue increasing the rate of skilled labor, especially highly qualified management force, engineers and well-skilled workers. Third, the authorities should adjust trade openness to boost the role of its determinant in attracting FDI inflows. Fourth, macroeconomic stability needs to be governed by international standards in order to secure the belief of foreign investors in the long-term.

The Effects of Foreign Direct Investment and Economic Absorptive Capabilities on the Economic Growth of the Lao People's Democratic Republic

  • NANTHARATH, Phouthakannha;KANG, Eungoo
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.3
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    • pp.151-162
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    • 2019
  • The paper examines the effects of Foreign Direct Investment (FDI) on the economic growth of Lao People's Democratic Republic (Lao PDR) between 1993 and 2015. The investigation is based on the influence of growth and economic absorptive capability determinants such as human capital, trade openness, and institutional quality. The methodological analysis uses a multivariate framework accounting capital stock, labor stock, FDI, human capital, trade openness, and institutional quality in regression of the Vector Autoregressive model. Augmented Dickey-Fuller unit root test, Johansen Cointegration test, and Granger Causality test were applied as parts of the econometric time-series analysis approach. The empirical results demonstrate the positive effects of FDI and trade openness, and the negative effects of human capital and institutional quality on the economic growth of the Lao PDR over the 1993 to 2015 period. The findings confirm that trade openness complemented by a sufficient level of infrastructure, education, quality institutions, and transparency significantly influence economic growth and attract more FDI. Research results lend credence to the need for the Lao PDR's government to focus on improving its economic absorptive capability and economic competitiveness regionally and globally by improving wealth and resource management strategies, as failure to take this course of action could lead to the Dutch Disease effects.

ON THE DETERMINANTS OF ENTREPRENEURSHIP IN MIDDLE EAST AND NORTH AFRICA

  • Zmami, Mourad;Salha, Ousama Ben
    • International Journal of Computer Science & Network Security
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    • v.21 no.2
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    • pp.181-187
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    • 2021
  • The purpose of this study is to examine empirically the short- and long-run determinants of entrepreneurial activity in a sample of 15 the Middle East and North African economies between 2006 and 2018. More specifically, four groups of determinants are considered in the analysis, namely economic, demographic, business environment, and institutional. Given the autoregressive feature of the entrepreneurial activity process, a dynamic panel data model is estimated using the system GMM estimator. Findings reveal that unemployment, trade openness, population density, and economic freedom are the main drivers of new business creation in the short-run, while the cost and number of procedures to start a new business negatively affect entrepreneurship. In the long-run, the same findings hold true. Moreover, education and political stability and the absence of violence/terrorism positively affect entrepreneurial activity. Policy recommendations are accordingly designed.

An Analysis on the Effects of Economic Growth and Environmental Pollution by Openness (개방화가 한국의 경제성장과 환경오염에 미치는 영향 분석)

  • Cho, Sung Taek;Cho, Yongsung
    • International Area Studies Review
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    • v.13 no.3
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    • pp.269-286
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    • 2009
  • The aim of the paper is to study environmental impacts of openness and trade in korea, and analyze the relationships between trade, development and environment. This study established endogenous determinants such as inflow FDI, level of environmental pollution and economic growth, and assumed a proposition that each individual variables are in two-way relationships among the three key variables such as the openness, the environment and GDP. To estimate a system of equations, a simultaneous equation model is used because the simultaneity problems are formidable. The results show that the more openness and economic growth increase, the more level of environmental quality improve. This study also found that FDI and openness, and economic growth bring along the level of environmental quality.

Occupants' Preferences for Housing Unit Plan by Using Computer Media and Conjoint Analysis (거주자가 선호하는 아파트 평면구성 유형 - 컴퓨터 미디어와 컨조인트 분석방법을 이용하여 -)

  • 오찬옥;김석태;최병숙
    • Korean Institute of Interior Design Journal
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    • v.13 no.2
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    • pp.109-119
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    • 2004
  • This study was intended to grasp the housing unit plan which the residents preferred. The subjects were 100 housewives who lived in 85$m^2$ sized housing units in the New Apartment Complex, Gimhae. First, four elements of unit plan were selected on the basis of the results of the POE which was carried out for the same subject the size of master bedroom and living room, the openness of dining/kitchen from living room, the openness of living room from entrance, and whether or not a bathtub or a shower booth is in bathroom. Then, eight design alternatives of unit plan made by combination of these four elements according to orthoplan were visualized by computer media. This visualized tool was used for collecting data. The results of the study were as follows: The important determinants of the residents' preferences for unit plan were the size of master bedroom and living room and the openness of living room from entrance. The residents preferred the unit plan which living room was large and the view from living room to dining/kitchen was open. Also, the important elements were different according to the characteristics of the residents. Therefore, the housing alternatives which are flexible and optional would be desirable.

The Study on the Impact of ODA on the Export of Korea: A Panel Data Analysis (공적개발원조가 한국의 수출에 미친 영향 연구: 패널 자료 분석)

  • Kang, Myeong-Joo
    • International Commerce and Information Review
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    • v.17 no.1
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    • pp.217-240
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    • 2015
  • This paper uses the modified gravity model of international trade to examine the impact of ODA on the export of Korea to 28 aid recipients. In this perspective, the study includes recipient's economic size, trade openness, population, donor's scale of aid and distance between them as key determinants of the export of Korea by using panel data over the period of 2005-2012. To do this task, important econometric methods are fulfilled to test the model adequately, such as panel unit root and panel co-integration test. In addition, the study incorporated the panel OLS, panel GLM and panel EGLS methods. The empirical analysis clearly showed that an increase in Korea's ODA promotes its own exports. The coefficients of recipients's per capita GDP, population and trade openness have a positive impact on Korea's export respectively, while distance between them has a negative impact. Regarding regional dummy variables, aid for the region of Africa and America have a negative impact on Korea's export. Overall, the main implication of this study is that even if it emphasized Korea's economic interests as determinants of ODA disbursements, but it also suggests that an improvement of recipient's economic development, income distribution and educational environment can be an important concern in the future.

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Determinants of Intra-Industry Trade between Vietnam and Countries in TPP

  • NGUYEN, Ha Minh;QUAN, Binh Quoc Minh;LE, Huong Van;TRAN, Thinh Van
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.1
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    • pp.123-129
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    • 2020
  • Intra-industry trade (IIT) has played an important role in international trade of Vietnam as a result of rapid growth of the country. This article investigates the level of IIT between Vietnam and 11 trading partners in Trans-Pacific Partnership (TPP) over the period 2000-2014. Although there have been a large number of empirical researches contributed to the determinants of IIT, most of them only pay attention on developed countries where the trade flows are similar due to similar demand structure and production technology. Until now, there is no study on intra-industry trade between Vietnam and countries in TPP that Vietnam recently signed a trade agreement in early 2016. IIT is measured by the Grubel-Lloyd index. The index shows that the extent of intra-industry trade between Vietnam and the trading countries is not high due to the level of economic development and the market size. The determinants of IIT are examined using a panel regression model. In the empirical analysis, the results indicate that Vietnam's intra-industry trade is positively correlated with country size, while it is negatively correlated with income dissimilarity, the trade openness, and geographical distance. This study contributes to the new theoretical trade theory on the evidence of developing country's IIT.

The Study on the Effect of Trade Openness and FDI on Income Distribution (무역개방과 해외직접투자가 소득분배에 미친 영향 연구)

  • Kang, Myeong-Joo
    • International Commerce and Information Review
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    • v.16 no.4
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    • pp.151-167
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    • 2014
  • The aim of this study is to examine the relationship between globalization and income distribution in Korea. In order to identify the key determinants, the study investigates the effects of trade openness, inward and outward FDI flows, and per capita GDP on income distribution. The study uses methodology of unit root and co-integration technique as well as an error correction model over 1992 to 2011 by using annual data. The empirical findings showed that income inequality is reduced as trade openness and the per capita GDP increase. Meanwhile, income inequality is deteriorated as inward and outward FDI flows increased. In addition, the study revealed that the negative effect of inward FDI flows on income inequality is greater than that of outward FDI flows. This result supports the Feenstra and Hanson (1997) hypothesis. Overall the globalization process can be beneficial for the Korean economy, but its nature should be closely monitored regarding income distribution.

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