• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.13-19
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• 2021

To provide empirical evidence on the impact of export instability on economic growth in developing countries, this study estimated the neoclassical production function using data of the Jordanian economy for the period 1995-2019. Real exports, real capital, and export instability were the independent variables in the production function. To determine the appropriate methodology for estimating the production function, the study conducted some preliminary tests, including the Augmented-Dickey Fuller (ADF), on the study data. The results of this test indicated that all study variables were stationary at first difference. Therefore, the Johanson cointegration test was applied to determine that there was cointegration between the study variables since the results of the former test indicated that there was one cointegration vector between these variables. The cointegration equation revealed a positive and statistically significant impact of real capital, real exports, and an indicator of export instability on economic growth. The most important policy implications for these results would be reducing the geographical concentration of exports through the expansion of free trade agreements (FTA) to enhance the positive impact of the instability of exports on economic growth. Moreover, the study recommends strengthening export-oriented actions to achieve higher levels of economic growth.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.60
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• pp.177-194
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• 2013

According to the 2013 statistics, the small/medium-sized enterprises (SMEs) accounted for 99.9% of the Korean economy with 87.8% of employment. This simple figures also indicate SMEs export extension is a key task for the national economy stimulation and job creation. The SMEs export plunge has been affected by the European financial turbulence, US financial instability, developing countries like China entering foreign markets, a weak yen, etc. EXIM Bank, in this context, will need to take a more proactive attitude to provide trade finance by, for example, reviewing the business feasibility for SMEs with a lower credit rank or investigating importers' credit status, etc. Moreover EXIM Bank provides factoring service mostly to large companies and should lower its threshold for service provision to SMEs. Finally EXIM Bank should play more than a primary forfeiting market entity. It also needs to facilitate the secondary forfeiting market.

• Journal of Korea Trade
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• v.26 no.6
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• pp.96-117
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• 2022

Purpose - Considering the recent instability of world economy and its heavy dependence on foreign, Korea must formulate breakthrough approaches to proactively cope with these adverse global developments. As such, this study aims to ascertain how participation in global value chains (GVCs) relates to corporate productivity and derive policy implications. Design/methodology - This study utilizes the microdata of Korean manufacturers to develop indicators of GVC participation at the enterprise level and analyzes the effects of GVC participation on the firm's total factor productivity by using fixed effect model. Findings - Enterprises with highest rates of export-side GVC participation see their productivity grow as their export-side GVC participation rates increase. In addition, when companies are classified by their export-side GVC participation rates, increasing export values improves all firm's productivity. In particular, those with low participation rates are analyzed to achieve higher productivity by increasing their imports, not only exports, which implies that companies with lower export-side GVC participation can boost productivity by reinforcing their export and import activities. Originality/value - This research paper distinguishes itself from others in that it makes a novel attempt to design the indicators of GVC participation at the enterprise level, not at the national or industry level. In addition, this study contributes to the existing literature by dividing companies into subgroups depending on their GVC participation rates for each of export and import and identifying variances in the effect of GVC participation on productivity growth among subgroups.

• International Commerce and Information Review
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• v.12 no.3
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• pp.223-242
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• 2010

Since the reopening of official relations in 1992, Korean and China have become major trading partners, apart from myriad exchanges in culture and other aspects of society. The subject of this study is to analysis on determinants for China market entry type of the Korean company. This article measure the effects on Korea exporter interests of Korea's trade with china. This paper investigates the determinants of export and FDI referring in entry type in the China's market of Korea company. There are 250 samples and 130 returns, 170 of them are analyzed for a entry competitiveness. This paper has there main a parts, Multiple regression result shows that the export entry competitiveness are positively affected by the product character and market character. However, The enterprise character and location character does not affect in the export competitiveness. Also, the direct investment entry competitiveness are positively affected by the market character and location character. However, The enterprise character and product character does not affect in the direct investment. Logit analysis result show that the direct investment entry does positively affected in CEO international mind and export entry does affect in more than rival competitive products. In addition, the export entry does positively affected in the customer taste diversity, political risk and economical risk, market environment instability.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.3
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• pp.235-243
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• 2022

To help the industry, outsourcing was found to be the most efficient method. An extensive literature analysis was done to assess the macroeconomic factors associated with outsourcing to supplement the anxious parties' decision-making process with evidence-based comprehensive tools. As a theoretical framework for evaluating these issues, transaction cost economies and resource-based perspective theories are investigated. Outsourcing is proven to be a result of energy crises and political instability. The advantages of outsourcing assist major industries in the economy. To discover the key drivers behind outsourcing, we used the vector autoregressive (VAR model) and step-wise regression techniques for the period 1992 to 2016. This research adds to the literature in that it not only explains the energy issue but also discusses the dilemma of political instability in the country in the context of outsourcing. The findings indicate that labor cost and export tendency have a positive impact on outsourcing strategy, which confirms the study's third and fourth hypotheses. Customs tax, inflation, and the unemployment rate, on the other hand, have a negative impact on textile outsourcing in Pakistan, according to the study's fifth, sixth, and seventh hypotheses.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.48
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• pp.127-155
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• 2010

The international transactions of capital goods such as industrial plant exports, overseas constructions, and shipbuilding exports, are so huge that tremendous amount of funds are required, and that most of the loans are long-term credits of over five years. In the export of huge capital goods, financing is more crucial than technology itself. Some of the importing countries are developing ones that are politically and economically unstable. Therefore the financing mechanism for these transactions is conclusive in winning these projects. Global financial market instability caused by US sub-prime mortgage financial crisis expanded all over the world, and the international transactions have been decreased due to global credit crisis. This indicates how much influential the financing market is in international transactions. The financing schemes are classified into supplier credit and buyer credit by who provides the financing. A supplier credit is a credit extended by an exporter(seller) to an importer(buyer) as part of an export contract. Cover for this transaction may be extended by an export credit agency('ECA') to the exporter. In a sales contract a seller shall provide fund required to manufacture goods, and in a construction contract a contractor shall provide fund required to complete a construction. A buyer credit is an arrangement in which an exporter enters into a contract with an importer, which is financed by means of a loan agreement A Comparative Study on a Supplier Credit and a Buyer Credit in International Transactions of Capital Goods 155 where the borrower is the importer. In a sales contract a buyer shall provide fund required to manufacture and procure the goods, and in a construction contract an owner shall provide fund required to complete a construction. Therefore an exporter is paid on progressive payment method. A supplier credit and a buyer credit have their own advantages and disadvantages in the respect of the parties respectively. These two financing methods are selectively used considering financing conditions such as funding cost, importer's and/or exporter's financial conditions, importing country's political risk.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.4
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• pp.29-38
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• 2022

The enormous sway of COVID-19 on the international financial market has been felt across the globe. The financial markets of Bangladesh have also been similarly affected by the global epidemic and experienced a significant increase in volatility. To scrutinise the connection between COVID-19 and the Dhaka Stock Exchange (DSE) indices' return and instability, this study uses data of the DSE from February 2014 to September 2021. A comparative examination of the return and instability of the stock indices of the DSE has also been done considering the outbreak of the current COVID-19 situation. After using the GJR-GARCH (1,1) model, this review uncovers that the outbreak of COVID-19 has a statistically positive noteworthy association with the DSE stock indices' instability, which increases the market's volatility. Traders' fear and the rising frequency of COVID-19 reported patients could cause this. Besides, according to this study, COVID-19 shows a substantial positive linkage with stock market returns that increases the market's return. An appealing valuation, lower interest rates in the banking channel, economic rebound following the closure to prevent coronavirus transmission, improved remittance inflows, and a return of export revenues could all have contributed to this outcome. In addition, the findings also reveal that all market indices are in a mean-reverting phase.

• Electronics and Telecommunications Trends
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• v.36 no.4
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• pp.110-117
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• 2021

The development of core technologies in the 4th Industrial Revolution, such as artificial intelligence, big data, and the intelligent Internet of Things, promote digital transformation and intelligence of the manufacturing industry. To realize them, there is an increasing demand for materials, components, and equipment needed for final goods. In particular, the expansion of global value chain instability due to changes in the external environment, such as the U.S.-China trade dispute, Japan's export regulations, and Covid-19 pandemic, increases the importance of strengthening the materials, components, and equipment industry in the global market. Thus, this study presents a strategic direction for securing global industrial competitiveness of materials, components, and equipment using Michael Porter's diamond model approach.

• The Journal of Fisheries Business Administration
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• v.48 no.2
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• pp.19-32
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• 2017

The purpose of this study is to identify problems and suggest improvements of estimating procedures and item of fisheries supply-demand statistics served as a basis for the fisheries supply-demand policies. Korea Rural Economic Institute(KREI) and Ministry of Oceans and Fisheries(MOF) respectively publish the fisheries supply-demand statistics. But the reliability of data is low as the statistics of these two organizations are limited and show discrepancy in the numbers. It is therefore difficult to use them as the basic data for policies. Also, an accurate data aggregation is difficult due to following problems in the items of statistics. 1) Problems in estimating route sales and non-route sales of production, 2) adequacy of fishery product yield rate compared to raw material in the fisheries import/export sector, 3) selection of target companies for understand stocks and survey scope of fish species, 4) applying'0'to non-edible product demand etc. In order to develop the fisheries industry as a future growth industry, it is necessary to establish the accurate fisheries supply-demand policy as the instability of fisheries supply and demand is increasing. To do this, statistical reliability has to be improved. The improvements proposed in this study should be implemented considering urgency. First of all, an exhaustive analysis of stock statistics and conversion rates of raw material yield in the fisheries import/export sector should be conducted. In the medium term and the long term, transferring production statistics to MOF and surveys on the use demand of non-food product and the level of reduced and discarded seafood products should be carried out in consecutive order.

• Environmental and Resource Economics Review
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• v.30 no.3
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• pp.435-469
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• 2021

The main purpose of this study is to identify the determinants of electricity import and export in 26 European Union countries using the Spatial durbin model(SDM). In particular, we would like to mainly explain it based on the amount of power generated by each energy source. Not just the usual way of constructing a weighting matrix based on contiguity, we adopt a weighting method based on the proportion of trade among countries with connected electricity systems. Moreover, the electricity systems of European countries are directly and indirectly connected, which is reflected in the weighting matrix. According to the results, nuclear power has a positive effect on exports and a negative effect on imports, and an increase in wind and solar power has a positive effect on both exports and imports by increasing power system instability. While Korea is unable to trade electricity due to geopolitical conditions, the results of this study are expected to provide implications for energy policies.