• KDI Journal of Economic Policy
• /
• v.27 no.1
• /
• pp.185-209
• /
• 2005

This study examines ERPT with asymmetric response and both import and export market shares, using wool trade data. The study found that, asymmetric response may be as common as symmetric response. In addition, the responses (both in price and quantity demanded) to the changes in exchange rate are considerably different across goods, and even for the homogenous goods, across countries. In case of depreciation, the export price changes more than appreciation case in general, and as a result the destination price changes less. It is also found that the cases of excessive or perverse pass-through are found more frequently than reported by previous studies. This finding points out that strategic behavior of firms or unexpected response to exchange rate fluctuation takes place more frequently than we commonly expect or take, in particular at disaggregated levels. When the model considers asymmetric responses of the export price to appreciation and depreciation (of exporter's currency), the estimation provided that for 39 trade cases out of 83, export price responded to appreciation and depreciation in different fashions, although the normal response was the dominating phenomenon with 99 cases or about 60% out of 166 cases. Market shares affected the extent and direction of responses in select cases. These findings will have important implications for policy makers and traders.

• Ocean and Polar Research
• /
• v.38 no.3
• /
• pp.225-234
• /
• 2016

This project sought to conduct an economic feasibility study regarding the commercial production of bio-hydrogen by the marine hyperthermophilic archaeon, Thermococcus onnurineus NA1 using carbon monoxide-containing industrial off-gas. We carried out the economic evaluation of the bio-hydrogen production process using the raw material of steel mill by-product gas. The process parameter was as follows: $H_2$ production rate was 5.6 L/L/h; the conversion of carbon monoxide was 60.7%. This project established an evaluation criterion for about 10,000 tonne/year. Inflation factors were considered as 3%. The operating costs were recalculated based on prices in 2014. The total investment required for development was covered 30% by capital and 70% by a loan. The operation cost for the 0.5-year test and integration, and the cost for the first three months in the 50% production period were considered as the working capital in the cost estimation. The costs required for the rental of office space, facilities, and other related costs from the construction through to full-scale production periods were considered as continuing expenses. Materials, energy, waste disposal and other charges were considered as the operating cost of the development system. Depreciation, tax, maintenance and repair, insurance, labor, interest rate charges, general and administrative costs, lubrication and miscellaneous expenses were also calculated. The hydrogen price was set at US$ 4.15/kg for the economic evaluation. As a result, the process was considered to be economical with the payback period of 6.3 years, NPV of 18 billion Won and IRR of 26.7%.

• East Asian Journal of Business Economics (EAJBE)
• /
• v.4 no.4
• /
• pp.1-7
• /
• 2016

This paper has studied the impacts of the exchange rate, government debt as a percent of GDP and other relevant macroeconomic variables on aggregate output in the Philippines. A simultaneous-equation model consisting of aggregate demand and short-run aggregate supply is applied. The dummy variable technique is employed to detect whether the slope and intercept of the real effective exchange rate may have changed. Real depreciation during 1998.Q1 - 2006.Q3, real appreciation during 2006.Q4 - 2016.Q1, a lower domestic debt as a percent of GDP, a lower real interest rate, a higher stock price or a higher lagged real oil price would raise aggregate output. Recent trends of real peso appreciation, declining domestic debt as a percent of GDP, lower real interest rates, and rising stock prices are in line with the empirical results and would promote economic growth. The authorities may need to continue to pursue fiscal prudence and maintain a stronger peso as the positive effect of real appreciation dominates its negative effect in recent years.

• Journal of Korea Port Economic Association
• /
• v.36 no.2
• /
• pp.63-86
• /
• 2020

The tax lease scheme for ships is an advanced ship financing tool that generates tax benefits through accelerated depreciation of capital allowances and transferring them to the ship operator (leasee) via reductions in rental payments. The scheme was introduced by Japan in 1978 and by France in 1998 to support their shipping and shipbuilding industries. The size of tax benefits varies by country depending on the depreciation rate for ships, corporate tax rate, and the tax system on profits from the sale of ship. This study uses a virtual model of the Korean tax lease scheme for ships based on the French tax lease scheme. The size of tax benefits is calculated and compared to those in the French and Japanese tax lease schemes. According to the analysis, the size of the tax benefit was approximately 19% for France, 14% for Japan, and 12% for Korea. This is differentiated by the country's depreciation rate and corporate tax rate, which have the greatest impact on the size of tax benefits. For the Korean virtual model, if the tax benefits are distributed by the operator and the investor at the rate of 75:25, the operator is expected to enjoy tax benefits equivalent to about 9% of the ship price and the investor to enjoy 3%. Despite limited information and data regarding the tax lease scheme for ships, this study was the first attempt in Korea to design a virtual model of the Korean tax lease scheme based on some predictable assumptions. Therefore, a group of shipping, financing, and legal experts will follow up on more professional and practical reviews of the model in the near future. Hence, this study will serve as a small contribution to the early introduction of the Korean tax lease scheme for ships.

• Asian Journal of Business Environment
• /
• v.9 no.3
• /
• pp.5-9
• /
• 2019

Purpose - This paper examines whether fiscal and monetary expansion would affect output in Australia. Research design, data, and methodology - An extended IS-LM model which describes the equilibrium in the goods market and the money market is applied. The real effective exchange rate and the real stock price are included in order to determine whether there may be any substitution or wealth effect. The sample consists of Annual data ranging from 1990 to 2018. The GARCH process is used in empirical work to correct for potential autoregressive conditional heteroscedasticity. Results - Expansionary fiscal policy reduces output; whereas, expansionary monetary policy raises output. In addition, real appreciation of the Australian dollar, a lower U.S. interest rate, a higher real stock price or a lower expected inflation would increase output. The finding that expansionary fiscal policy has a negative impact on real GDP suggests that the negative crowding-out effect on private spending dominates the positive impact. Conclusions - Fiscal prudence needs to be pursued. Real depreciation of the Australian dollar hurts output. Monetary tightening in the U.S. generates a negative effect on Australia's output. A healthy stock market is conducive to economic growth as higher stock prices tend to result in the wealth and other positive effects, increasing consumption and business spending.

• Asian-Australasian Journal of Animal Sciences
• /
• v.14 no.9
• /
• pp.1326-1330
• /
• 2001

This study analyzed the lowest production cost and the greatest profit to be obtained from marketing hogs to determine the optimal operation scale for family-owned farrow-to-finish farms. Data were collected from 39 farrow-to-finish farms with 500 to 5,000 inventories for two consecutive years, and treated with GLM and quadratic regression models using the REG procedure. Analysis results indicated that farms capable of marketing 2,933 and 3,286 hogs annually had the lowest production cost and the greatest profit, respectively. Further analysis attributed the lowest production cost or the highest return in farms with an optimal scale of 3,000 to a higher survival rate of the herd, as well as lower expenses in veterinary medicine, labor, utilities and fuel, transportation, and depreciation. A similar feed conversion efficiency was observed for all the farms studied. Obviously, the cost efficiencies were associated with the economy of the operation scale of hog production until it reached 3,000 hogs marketed annually for a family-run unit. Beyond the optimal scale of 3,000 hogs, good stockmanship was more difficult to maintain and the herd management deteriorated as increasing mortality confirms. It is conclude that, unless advanced management is applied, the operation scale should not expand beyond 3,000 hogs.

• International conference on construction engineering and project management
• /
• 2015.10a
• /
• pp.736-737
• /
• 2015

In these days, international construction market including construction companies has much grown due to globalization and economic boom in the mid 2000's. The size of international construction market, measured with overseas revenue of 225 construction firms, has expanded 2.7 times from 2003 to 2008 according to the ENR. However, after the global financial crisis of 2008 it has faced condition of low growth. In this research, major changes of international construction market and top contractors have been studied. In this study, changes of international construction market have been analyzed in the aspect of region and product including general buildings, transportation, petroleum, etc. Then, in order to find the changes of top contractors which obtained good accomplishment, business performance of companies have been examined by the compound annual growth rate, profit margin and international revenue by comparing the data before 2008 and after. The purpose of the study is to understand major changes of international construction market. Also, strategy changes of top contractors against market stagnation, profit depreciation, high competition have been inferred through the study. The result of the study would contribute to analyzing the strategies of construction companies in international market.

• Korean Journal of Agricultural Science
• /
• v.23 no.1
• /
• pp.159-176
• /
• 1996

This study is aimed at reviewing the methods of joint cost allocation and allocating the joint cost of estuary dam with specially repect to Kumgang Large-scale Agricultural Comprehensive Development Project. Apart from the water resource development project propelled by Water Resource Development Corporation in connection with Law of Multipurpose Dam Development, the Largescale Comprehensive Agricultural Development Projects couldn't ins-titutionally be carried out cost allocation of common facilities, even though it were concerned with irrigation, municipal and industrical water supply, flood control, sightseeing and industrial zone development components. To decrease farmer's burden of the project costs and, operation and maintenance costs, the joint costs of common facilities like estuary dam included in agricultural development projects have to be allocated by suitable method as alternative cost-remaining benefit method and the analytical activity should be supported by revising the concerned laws as Rural Development and Promotion and, Rural Rearrangement conpatible with the law for multipurpose dam development. Kumgang Agricultural Comprehensive Development Project was selected as a case study for the estimation of socio-economic benefits by project components and joint cost allocation of the estuary dam. The main results of the study are as follows; Joint cost allocation and unit charges by components 1. The project area will be 25,554ha with total project cost of 624,860 million won including the estuary dam cost of 120,843 million won. The project costs were ex-pressed by 1994 constant price. 2. Total quantity of water was estimated 365 million tons which were consisted of 245 million tons for irrigation, 73 million tons for municipal water and 47 million tons for industrial water. 3. The rates of joint cost allocation were amounted to 34.2% for agriculture, 2.5% for sightseeing, 45.7% for transportation, 11.8% for M & I water supply and 5.8% for flood control respectively. 4. The unit financial charges by project components were estimated at 7.88 won per ton for irrigation, 16.11won for M & I water, 1,686won per vehicle one pass, 977won per Pyeong according to the capital recovery method. The financial charges using straitline method for depreciation were estimated at 7.88won per ton for irrigation, 9.12won per ton for M & I water, 624won per vehicle one pass for transportation and 331won per Pyeong for sightseeing area. 5. The unit economic charges by project components were estimated at 21.1 won per ton for irrigation, 15.2won for M & I water, 977won per vehicle one pass, 977won per Pyeong according to the capital recovery method. The economic charges using straitline method for depreciation were estimated at 11.72won per ton for irrigation, 8.61won per ton for M & I water, 331won per vehicle one pass for transportation. Policy recommendation 1. The unit operation and maintenance costs for irrigation water in the paddy field couldn't be imposed as the water resource cost untreated. 2. The dam costs including investment cost and O & M cost, as a joint cost, had to be allocated by each benefited components as transportation, M & I water supply, flood control, irrigation and drainage, and sightseeing. But the agricultural comprehensive project have been dealt as an irrigation project without any appraisal socio-economic benefits and any allocating the joint cost of estuary dam. 3. All the associated project benefits and costs must be evaluated based on accounting principle and rent recovery rate of the project costs and O & M costs should be regulated by the laws concerned. 4. The rural development and promotion law and rural rearrangement law have to be revised comprising joint cost allocation considering free rider problems. 5. The government subsidy for the agricultural base development project has to be covered all the project costs. In case of common facilities representing joint cost allocation problems, all the allocated casts for other purposes like transportation and M & I water supply etc. should be recovered for formation in investment fund for agricultural base development and to procure O & M costs for irrigation facilities.

• International Area Studies Review
• /
• v.14 no.1
• /
• pp.121-138
• /
• 2010

This paper investigates the effectiveness of the Bretton Woods II hypothesis, by analysing the relationship between the exchange rates and the U.S. current account against 9 Asian countries for the period of 1999-2008. According to the estimation results, It is found that the Asian currencies' real depreciation significantly have worsened the U.S. current account against the Asian countries. Also, the U.S. current account was significantly affected by GDP and investment of the U.S. and the Asian countries. Thus, It is hard to say that the main driver of the global imbalance is the exchange rates devaluation policies of Asian countries as the Bretton Woods II hypothesis argues. The global imbalance is more likely to be complementally affected by savings glut in the Asian region and the deficiency of net saving in the U.S. Therefore, the global imbalance is expected to adjust when economic conditions besides exchange rates change.

• The Southeast Asian review
• /
• v.27 no.4
• /
• pp.41-76
• /
• 2017

This paper analyses the market shares and the export similarity indexes (ESI) of Korea, Japan and China in ASEAN, and then identifies the determinants of Korea's exports to ASEAN countries using single equation cointegration approaches, such as fully modified OLS (FMOLS), dynamic OLS (DOLS), and canonical cointegration regression (CCR). Various regression results are as follows: As expected, Korea's real exports tend to increase as importing country's GDP grows. The competing third country's currency depreciation affects Korea's exports differently from country to country. Most notably, it doesn't significantly affect Korean exports in Malaysia, Indonesia and Thailand. These results suggest that bilateral or third country exchange rates are not that important or decisive factors to determine Korea's exports to ASEAN countries in the long-run while economic growth in ASEAN countries matters most.