• The Journal of Asian Finance, Economics and Business
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• v.9 no.2
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• pp.49-59
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• 2022

The relationship between income inequality and capital account openness is empirically investigated in this study, where macroeconomic variables have opposing effects. Panel data used in the study from the KAOPEN Index and World Bank consists of 28 Asian countries and has been examined; it contains annual observations from 1970 to 2018. The data is examined using a random-effect model based on GMM estimates. Income inequality and capital account openness are positively and significantly related, according to our findings. Overall, the findings imply that increasing income gaps reduced capital investment in nations with large discrepancies. The growing economic discrepancy is being caused by the rich's increasing income share at the expense of the poor. In Asia, inward capital account openness exacerbates income inequality, while outward capital account openness exacerbates it. As a result, income inequality slows economic growth, leading to inflation, unemployment, and increased government spending in several Asian countries. Our control factors, GDP, and other secondary school enrolments, all had a statistically significant negative relationship with income inequality. Income disparity has a positive and statistically significant association with government spending, inflation, population, trade openness, and unemployment. Income disparity has a negative association with capital account openness, gross domestic product, and secondary school enrollment.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.2
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• pp.209-215
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• 2022

This study aims to analyze the livelihood resources and income diversification of informal recyclers in the Mekong River Delta (MRD). The multiple linear regression model was applied to determine income diversification and total household income with the sustainable livelihood analysis framework developed by the United Kingdom Department for International Development (2000), including human resources, physical resources, natural resources, financial resources, and social resources. The results indicated that up to 25% of itinerant waste buyers worked on average more than 7.3 hours/day, which was higher than the urban near-poor level regulated by the Vietnam government. The results of the regression model revealed that total households' income was affected by the factors of health status, gender, urban location type 1, the amount of potential savings, and informal credit participation, while the factors of health status, urban location, the amount of potential savings, and informal credit participation have the effect of diversifying farm household income. Thus, if the informal waste recycling sector is supported and regulated by proper government management, it will not only help poor households diversify their income, but it will also help poor households diversify their income, particularly women's income, which is vulnerable and lower than male income in the MRD.

• Forest Science and Technology
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• v.14 no.4
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• pp.192-203
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• 2018

This study analyzed the distribution of forest income and other variable sources of rural household income and considered their importance for the reduction of income inequality and poverty. We employed Gini decomposition to measure the contribution of forest income and other sources of income to income equality and assess whether they were inequality-increasing or inequality-decreasing in the 14 villages. The forest income Gini correlation with total income was very high, $R_k=0.6960$, and the forest income share of total rural household income was 35% ($S_k=0.3570$). If the income earned from forest activities was removed, the Gini index would increase by 10.3%. Thus, if people could not access forest resources because of vast deforestation, perhaps from the limitations of government-managed forestry, unplanned clearing of forest land for agriculture or the granting of ELCs, there would be an increase in income inequality and poverty among rural households. The findings suggest that policy makers should look beyond agriculture for rural development, as forest resources provide meaningful subsistence income and perhaps contribute to both preventing and reducing poverty and inequality in rural communities. The study found that non-farm activities were inequality-increasing sources of income. The share of non-farm income to the total rural household income was $S_k=0.1290$ and the Gini index of non-farm income was very high, $G_k=0.8780$, compared with forest and farm income. This disagrees with other studies which have reported that non-farm income was inequality-decreasing for the rural poor.

• Journal of Distribution Science
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• v.14 no.8
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• pp.139-151
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• 2016

Purpose - In Chinese rose market, Korea competes against Latin American and African countries, but is not so competitive in terms of price and quality, implying the importance of using appropriate marketing strategies. This study aims to examine Chinese rose consumers' recognition and attributes of preference for roses produced in Korea, in order to use the result as baseline data for Korean rose exporters to China and provide implications that help establish a variety of marketing strategies targeting each region, income and age group. Research Design, Data and Methodology - 112 Chinese people were involved and interviewed in Chinese horticulture industry who had participated in 2016 Hortiflorexpo IPM Beijing. Online questionnaire survey was additionally conducted with 533 Chinese living in Korea and China. The Conjoint Analysis was conducted for region, age, and income group of respondents to estimate the relative importance of rose attributes evaluated by each population group and the utility derived from each attribute level. This process aimed to compare respective population groups for the relative importance and utility to derive implications for targeted marketing strategies. Results - The analysis finds that Chinese rose consumers prioritize rose color, followed by price, flowering stage, and flower size in purchasing roses. They prefer red roses most, followed by pink and then yellow. Moreover, they prefer larger roses, and relatively cheaper roses. The analysis reveals they prefer roses in their 20%-flowering stage to more than 40%-flowering stage. Conclusions - Establishing marketing strategies differentiated for each Chinese consumer group is critical in expanding Korean rose export. The analysis finds while Chinese consumers living in Beijing considered rose color and flowering stage more importantly than their counterparts in Shanghai, Chinese consumers living in Shanghai considered rose price and size more importantly than their counterparts living in Beijing. Therefore, establishing marketing strategies based on these attributes of preference in each region is necessary. Mid & low-income consumer groups considered price as the most important factor, and high-income consumer groups considered rose color as the most important one. It is, thus, important to focus on rose color when establishing a marketing strategy with targeting the high-income consumer group.

• Korean System Dynamics Review
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• v.15 no.2
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• pp.51-74
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• 2014

Over the past few years Korea has achieved rapid economic growth, while the deepening polarization of income has negatively affected Korea economy and society. It can be the reason of this negative effect on economy that the increased income by the economic growth has not been distributed socially, but overly focused on one part of social class. One of the important and powerful solution of social polarization could be the strengthening of the income distribution. In these circumstances, the social interest and discussion on the universal welfare system and on the basic income as the means of income redistribution have been increasing. In this study, a system dynamic analysis was conducted to find how an universal cash payment as basic income providing cash benefits impacts on the promotion of consumption in private sector, of local jobs and of local economic organizations. Recently, the poor energy consumption ability of energy poverty became one of the social problems. Also it was analysed how an energy payment-in-kind as basic income influences on the energy consumption of the region, the energy production capacity, the promotion of local energy. The universal cash payment and energy payment-in-kind as the basic income policy showed similar and positive effects on the local economy system and on the local energy system respectively.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.529-540
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• 2020

The objective of this research paper is to study the simultaneous relationship between fiscal decentralization, corruption, and income inequality among Vietnamese provinces. We use a balanced panel data set of 63 provinces/cities in Vietnam in the period from 2011 to 2018. The study used 3SLS-GMM (Three Stage Least Squares - Generalized Method of Moments estimator) and GMM-HAC (Generalized Method of Moments - Heteroskedastic and Autocorrelation Consistent estimator). Empirical evidence shows a strong simultaneous relationship: increased corruption will increase regional income disparities, income inequality, and increase fiscal decentralization. In addition, the results also suggest that an increase in per-capita income will reduce the level of corruption, or better control corruption of each province. The degree of increase in income inequality, which reduces fiscal decentralization, is the same for trade liberalization. All demonstrate that there is a simultaneous relationship between fiscal decentralization, corruption, and income inequality. In a region of high public governance quality, fiscal decentralization positively effects its economic growth. This issue will indirectly increase income inequality between provinces within a country. Our findings imply that a country's fiscal decentralization strategy should be linked to improving corruption control and local governance effectiveness, indirectly improving income inequality between localities or regions.

• The Journal of Fisheries Business Administration
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• v.54 no.2
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• pp.77-90
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• 2023

This study employed the Gini coefficient decomposition analysis to classify and examine fishery household income inequality according to income sources. The raw data from the Fisheries Economic Survey by the National Statistical Office were used for the analysis after equalization according to the recommended method of the OECD. In particular, the Gini coefficient was decomposed by classifying with and without public subsidies, and the contribution, correlation, and marginal effect by income source were presented.As a result of the analysis, the inequality of fishing income and non-fishing income of fishermen was worsening, and the inequality of transfer income was continuously easing. Among them, fisheries subsidies have been analyzed to have the greatest contribution to the Gini coefficient of gross income and the highest relative marginal effect, although distribution inequality has been alleviated. On the other hand, other subsidies, including public pensions, were found to have the opposite contribution, correlation, and marginal effect to fisheries subsidies. The results of this analysis showed that even within public subsidies, the contribution to income redistribution might differ depending on the nature of the subsidy. In addition, in the case of other public subsidies, it can be seen that the transition from selective welfare to universal welfare occurs.

• Land and Housing Review
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• v.14 no.4
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• pp.17-37
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• 2023

The rental housing market in South Korea, specifically monthly rent with deposit, has been expanding over the last three decades (8.2% in 1990 to 21.0% in 2020), partly replacing the traditional Jeonse market. The distribution of rent has changed due to public rental subsidies and the emergence of luxury rental housing, while the distribution of rental household income has been polarized because of the emergence of rich renters. This study attempts to measure the structural changes in the rental market by developing a new indicator of income-rent mismatch. Using the seven series of the Korea Housing Survey, this study analyzed the changes in rent (reflecting the conversion rate) and income levels of rental households in 2006 (base year) and 10-15 years later (the analysis year) at the national level and at the spatial unit of 16 metropolitan cities and provinces (excluding Sejong), respectively, by dividing them into quartile data. The result reveals that rental housing was undersupplied in middle- and high-income rental housing due to the decline in the highest quartile (25%→18%) and the third quartile groups (25%→20%), while the supply of public rental housing expanded for the second quartile (25%→28%) and the lowest quartile (25%→35) groups. On the demand side, the highest income quartile shrank (25%→21%), while the lowest income quartile grew (25%→31%). Comparing the 16 metropolitan cities and provinces, there were significant regional differences in the direction and intensity of changes in rent and renter household income. In particular, the rental market in Seoul was characterized by supply polarization, which led to an imbalance in the income distribution of rental households. The structural changes in the apartment rental market were different from those in the non-apartment rental market. The findings of this study can be used as a basis for future regional rental housing markets. The findings can support securing affordable rental housing stock for each income quartile group on monthly rent and developing housing stability measures for a balance between income and rent distribution in each region.

• Journal of Distribution Science
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• v.17 no.11
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• pp.73-79
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• 2019

Purpose: The purpose of this study was evaluated to compare the predictive power of distress prediction models by using discriminant analysis method and logit analysis method for food service franchise industry in Korea. Research design, data and methodology: Forty-six food service franchise industry with high sales volume in the 2017 were selected as the sample food service franchise industry for analysis. The fourteen financial ratios for analysis were calculated from the data in the 2017 statement of financial position and income statement of forty-six food service franchise industry in Korea. The fourteen financial ratios were used as sample data and analyzed by t-test. As a result seven statistically significant independent variables were chosen. The analysis method of the distress prediction model was performed by logit analysis and multiple discriminant analysis. Results: The difference between the average value of fourteen financial ratios of forty-six food service franchise industry was tested through t-test in order to extract variables that are classified as top-leveled and failure food service franchise industry among the financial ratios. As a result of the univariate test appears that the variables which differentiate the top-leveled food service franchise industry to failure food service industry are income to stockholders' equity, operating income to sales, current ratio, net income to assets, cash flows from operating activities, growth rate of operating income, and total assets turnover. The statistical significances of the seven financial ratio independent variables were also confirmed by logit analysis and discriminant analysis. Conclusions: The analysis results of the prediction accuracy of each distress prediction model in this study showed that the forecast accuracy of the prediction model by the discriminant analysis method was 84.8% and 89.1% by the logit analysis method, indicating that the logit analysis method has higher distress predictability than the discriminant analysis method. Comparing the previous distress prediction capability, which ranges from 75% to 85% by discriminant analysis and logit analysis, this study's prediction capacity, which is 84.8% in the discriminant analysis, and 89.1% in logit analysis, is found to belong to the range of previous study's prediction capacity range and is considered high number.

• Korean Journal of Social Welfare
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• v.64 no.2
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• pp.185-212
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• 2012

This study examines changes in income inequality and income mobility associated with a transition to old age. In understanding the dynamics of income distribution over the later life course, it is important to explore the changes in income dispersion and the changes in relative income positions jointly. Data come from Korean Labor and Income Panel Study(KLIPS) 2nd, 7th, 12th wave. The results are as follows. First, a transition to old age is associated with an increase in income inequality. The Gini index of inequality increased steadily over the life course. Second, a transition to old age is associated with substantial income mobility. The Spearman's rank correlation coefficient between two periods was the lowest at the time of the transition. Increasing income dispersion and significant income mobility can be conceptualized as "income insecurity", since the older population are less likely to cope with income fluctuations. Third, in explaining such changes over time, changes in work life during old age and a subsequent decrease in earnings seem to be the most influential factor.