• Title/Summary/Keyword: GDP growth rate

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Economic Impacts of Renewable Portfolio Standard on Domestic Industry (신재생에너지 의무할당제의 국내산업에 대한 파급효과)

  • Kim, Hyun Jae;Cho, Gyeong Lyeob
    • Environmental and Resource Economics Review
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    • v.19 no.4
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    • pp.805-828
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    • 2010
  • Korea also plans to introduce Renewable Portfolio Standard (RPS) for strengthening market functions after 2012 as United States and several members of EU countries did. Through the introduction of RPS, it requires energy industry to supply new and renewable energy at fixed rate. Therefore, it will contribute to the distribution of new and renewable energy. This paper analyzed the economic effect of the introduction of RPS using CGE. The summary of the paper on the analysis of the economic effect based on endogenous growth theory under imperfect market competition by using CGE is as follows; Since RPS possibly regulates the amount of new and renewable energy, it can achieve the target amount of new and renewable energy without fail. As achieving the target amount accurately, the distribution of more advanced skills can be expected. However, GDP reduction can occur because investment cost increases due to the requirement of new and renewable energy supply. Therefore, in the long run, it is appropriate to introduce RPS because it contributes to the distribution of new and renewable energy and can be utilized as a new growth engine to encourage economic growth.

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The Changing Patterns of Demand-Supply and Role of Mineral Resources in Economic Growth during Industrialization of the Republic of Korea (한국공업화과정(韓國工業化過程)에서의 광물자원(鑛物資源)의 수급구조변화(需給構造變化)와 경제성장(經濟成長)에 있어서의 역할(役割))

  • Yun, Suckew
    • Economic and Environmental Geology
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    • v.18 no.1
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    • pp.65-92
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    • 1985
  • A total of 12 mineral commodities significant in domestic output, economy and/or strategy of the Republic of Korea are chosen to examine the structural changes in production and demand-supply of these minerals during the last two decades of her industrialization. These include iron and manganese ores as the raw materials for iron and steel making, copper, zinc and tungsten ores among other non-ferrous metallic minerals, limestone (cement), kaolin, talc, pyrophyllite and graphite among other non-metallic minerals, and anthracite coal as the only domestic source of fossil energy. These are reviewed historically in time-series based on the statistical data which are tabulated and graphed in terms of domestic output, export, import, apparent demand-supply, its increasing rate, and self-sufficiency rate of each commodity. The increasing rates of demand-supply (IRDS) of some more important commodities are compared with those of Gross Domestic Production (GDP) and Economic Growth Rate (EGR) to evaluate how the IRDS contributed to the GDP and EGR. The major results revealed are as follows: Among the 12 commodities, the domestic output of 8 commodities appeared to have grown with steady upward trends: they are ores of lead, zinc and tungsten, limestone (cement), kaolin, talc, pyrophyllite and anthracite coal. Two commodities, ores of iron and copper, continued with unchanging or slightly declining trends and varied fluctuations, in spite of their cardinal importance to the heavy industry and strategy of Korea. The remaining two, graphite and manganese ore, have gradualy declined in domestic output in which the former has still enough resource potential but the latter has not and virtually ceased its domestic output. Trade patterns for mineral commodities in the Republic of Korea during the last two decades have changed greatly, being marked by a shift from mineral-exporting to mineral importing, mainly because of increasing consumption of mineral raw materials for industrialization rather than beceuse of decreasing output of domestic mineral commodities in quantity. In terms of trade patterns, the 12 commodities concerned in this study can be classified into the following four groups. The 1st group - ores of lead and tungsten have only been exported without imports. The 2nd group - amorphous graphite, and pyrophyllite have mainly been exported but partly been imported. The 3rd group - kaolin, talc and crystalline graphite have equally been exported and imported, but quantity of imports have rapidly been increased with time. The 4th group - ores of iron, manganese and zinc have shifted from exports to imports during the industrialization, particularly owing to the initiation of iron and steel making by the Pohang Iron and Steel Company in the middle 1970' s and the new establishment of the Onsan Zinc Refinery in the late 1970' s. All of the 12 commodities under considerations were far above 100% in self-sufficiency rate before or in the early 1960' s. Recently, however, most of them have been declined to below 100% except for those of limestone (cement) and pyrophyllite. It is particularly serious to identify that the self-sufficiency rates of the three important metallic minerals, iron, copper and manganese ores in 1982 appeared to be 5.1%, 0.5%, and 0.01%, respectively. The average self-sufficiency rate of the total domestic minerals produced in 1982 was 14.4% (in value) for that year. Mining industry appeared to be extremely high in its intermediate demand rate whereas its intermediate input rate to be quite low indicating that mineral raw materials have been exerted strong forward linkage effects upon the other industries rather than backward linkage effects. In comparing the curves of increasing rates of demand-supply of several major minerals - iron ore, manganese ore, copper ore, limestone (cement), kaolin, and anthracite coal - with those of Gross Domestic Production and Economic Growth Rate drawn on every graph, it is clearly shown that the curves of increasing rates of demand-supply comprise around 6 to 7 periods of cycles which roughly harmonious with those of the curves of GDP and EGR, except for the curve of anthracite coal of which the configuration seems to have resulted from the (artificial) government's mineral policy rather than from economic free market mechanism. The harmonic feature of these curves well suggests that the increasing rates of demand-supply of major minerals have been significantly contributed to the GDP and EGR. In addition, the wider amplitudes of the iron, manganese and copper curves than those of the limestone (cement) and kaolin curves indicate that the contribution of the former, metallic commodities, has been greater than that of the latter, non-metallic commodities.

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What Determines Foreign Direct Investment in Finances of OECD Countries

  • HA, Yugang;CHOI, Baek-Ryul
    • The Journal of Industrial Distribution & Business
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    • v.10 no.11
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    • pp.15-23
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    • 2019
  • Purpose: Global economic integration has provided good opportunities and conditions for the development of foreign direct investment in Finances. Therefore, this paper attempts to explore what determines foreign direct investment in Finances of Organization for Economic Co-operation and Development (OECD) countries. Research design, data and methodology: This paper employs the panel data over the period 2005-2017 and uses the random effect model to estimate this proposition. Results: The results indicate that the foreign direct investment in services, growth rate of GDP, interest rate and saving are positively related with foreign direct investment in finances. Conversely, the growth rate of wage and fluctuation rate of exchange rate are negatively related with foreign direct investment in finances. Moreover, the results verify that the effect of these variables on foreign direct investment in finances is different before and after 2008 (global economic crisis). In addition, the results also manifest that the regional effect exists. Namely, the effect of these variables on foreign direct investment in finances between G7 countries and G20 countries exist significant difference. Conclusions: Those variables used in this paper are related with foreign direct investment in Finances of (OECD) countries.

Evaluation of the Policy Effects of Free Trade Agreements: New Evidence from the Korea-China FTA

  • Xiang Li;Hyukku Lee;Seung-Lin Hong
    • Journal of Korea Trade
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    • v.26 no.6
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    • pp.41-60
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    • 2022
  • Purpose - The policy implications of free trade agreements have traditionally been a matter of debate among economists. The official signing of the Korea-China Free Trade Agreement provides economists with a quasi-natural experiment to analyze the FTA's policy effects. This article aims to more accurately understand the impact of Korea's FTA accession on the macro economy. Design/methodology - This study adopts the counterfactual method based on panel data to find common factors in the generation process of macro data to fit the counterfactual path, to accurately evaluate the effect of the macro policy. Findings - Our research results show that the signing of the Korea-China FTA has a relatively significant short-term positive effect on Korea's economic growth. On average, Korea's real GDP growth rate has increased by 2.1%. This study finds evidence in support of FTA signing not having a significant impact on Korea's GDP growth in the long run. Additionally, we evaluated the impact of the FTA on Korea's imports and exports and found that it had a significant positive impact in the short term, but the trade effect of the FTA is significantly affected by the external macro-environment. Originality/value - First, this study uses macro panel data at the national level to examine the impact of the Korea-China FTA on Korea, and more accurately describes the policy effect of the FTA. Second, our empirical results show that the Korea-China FTA policy impact is subject to occasional changes in the external environment, such as the geopolitical conflict (crisis) between Korea and China, and the US-China trade war. Finally, the analysis shows that the short-term effect of FTA is significant but the long-term is uncertain, which provides empirical evidence for the debate on whether joining FTA can promote national economic growth.

The Effectiveness of Macroprudential Policy on Credit Growth at Bank-Level Data in Vietnam

  • NGUYEN, Hau Trung;PHAM, Anh Thi Hoang;DANG, Thuy T.
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.8
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    • pp.325-334
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    • 2021
  • The study investigates the effectiveness of the macroprudential policy on credit growth in Vietnam. The authors use the logic of the transmission mechanism of macroprudential policy on credit growth. Research variables include economic growth, inflation, interest rate, and quarterly bank-level data from 28 commercial banks in Vietnam during 2011-2018. The results reveal that: (i) GDP growth had a positive impact on credit growth of small banks but had no impact on large banks, (ii) Domestic Systemically Important Banks (D-SIBs) and small banks respond differently to macroprudential measures of imposing different credit growth targets for different bank groups, (iii) Restrictions on foreign currency loans are found to be effective in curbing credit growth for the full sample and small banks, (iv) Inflation and economic cycle have significantly impacted credit growth at bank-level in Vietnam and (v) Interestingly, a significant positive relationship between interest rates and credit growth is found for the full sample and D-SIBs in Vietnam. The findings suggest that a stable macroeconomic environment should be good conditions for financial stability, and monetary authority should pay more attention to small banks' behaviors than D-SIBs behavior, toward such "administration" tools since small banks tend to prefer "breaking the rules" to make profits.

The relationship between fatal occupational injury rate and socio-economic indicators in Korea (한국의 업무상 사망률과 사회경제적 지표와의 관련성)

  • Lee, Won-Cheol;Kim, Soo-Geun;Ahn, Hong-Yup;Yi, Kwan-Hyung;Lee, Eun-Hee
    • Journal of Korean Society of Occupational and Environmental Hygiene
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    • v.20 no.3
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    • pp.168-174
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    • 2010
  • South Korea's industrial injuries are decreasing overall in the last 32 years. Nevertheless, the fatal occupational injury rate is still higher than in developed countries. This study was conducted to help prevention strategies of occupational injuries for the Republic of Korea. Fatal occupational injury rates were obtained from "Industrial Accident Analysis"of the Korean Ministry of Labor. Poisson regression was used to assess time trends. Socioeconomic indicators were obtained from the Korea Labor Institute and the Statistics Korea. Fatal occupational injury rates were adjusted by year, and Pearson correlation analysis was used to assess the relationship between the socio-economic indicators and occupational injuries. In 1975, fatal occupational injury rate was 54.8 per 100,000 workers. With somewhat up and down, it was decreased to 21.0 in 2006. An annual rate of change for the years 1975-2006 was - 1.83%, and for the years 2002-2006 was -5.02%. As economic growth rate, paricipation rate for the age less than 25 and hours of work per week or year increased, fatal occupational injury rate also increased. Conversely, as GDP per capita, paricipation rate or employment rate for female, paricipation rate for the age 25 or more, hourly compensation costs for production workers and services output as percent of GDP increased, fatal occupational injury rate decreased. By the development of safety techniques and the adoption of more legislative constraints, developed economy reduce occupational injuries. Conversely, economic growth may raise occupational injuries. Therefore, prevention strategies are needed to manage both of them. We need to make an effort to prevent occupational injuries due to not only sexual differences, but also job differences between male and female. Preventive strategies are needed to consider the characteristics of younger workers. Addition to wage, other appropriate variables for work condition should be considered together. Extending work hours is need to be regulated with systemic methods.

Macroeconomic and Bank-Specific Variables and the Liquidity of Jordanian Commercial Banks

  • AL-QUDAH, Ali Mustafa
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.12
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    • pp.85-93
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    • 2020
  • This study aimed to explore the impact of macroeconomic (Real GDP growth (GDPG), Inflation rate (INF)) and bank -specific variables (profitability (ROA), capital adequacy (CADEQ), non-performing loans (NPL), deposit growth (DEPG)) on the liquidity (lIQ) of 13 listed Jordanian commercial banks for the period 2011-2018. Panel data analysis, Pooled least square, fixed effects model and random effects model, Lagrange multiplier test, and Hausman test were used. The random effects model output shows that, macroeconomic variables have a significant impact on Jordanian commercial banks liquidity since inflation has a positive impact while GDPG has a negative impact on banks (LIQ). On the other hand among the bank-specific variables capital adequacy and deposit growth have a positive significant impact on banks (LIQ), while (NPL) and (SIZE) have a negative significant impact on Jordanian commercial banks liquidity. But ROA has a negative insignificant impact on (LIQ). The findings of the study suggest that commercial banks departments need to pay attention to the economic and internal variables of banks in order to maintain acceptable levels of liquidity.

Analysis of Structure in the Domestic Supply & Demand of the Raw Materials of Rare Metals (국내 희유금속 수급구조 분석 연구)

  • Kim, Yu Jeong;Lee, Hwa Suk
    • Resources Recycling
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    • v.23 no.3
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    • pp.51-60
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    • 2014
  • In this study, the domestic supply & demand of the raw materials of 35 rare metals was analyzed categorized as four types - ores, metals, compounds and scraps. Foreign trade volumes of the raw materials of rare metals have been steadily increased, furthermore, recently trade growth rate highly exceeds GDP. The raw materials of rare metals - silicon, nickel, molybdenum, manganese, etc. - for steel industry were the most big part of the raw materials of rare metals trade, while the raw materials of rare metals for electronics industry were imported relatively small volumes less than $100 million. However systematic supply & demand management on the raw materials of rare metals for electronics industry is needed since recently growth rate per year has been remarkably high over 20%. Import volumes were about three times bigger than export scale, and most of the raw materials of rare metals were traded as a metal form.

Urban Growth Prediction each Administrative District Considering Social Economic Development Aspect of Climate Change Scenario (기후변화시나리오의 사회경제발전 양상을 고려한 행정구역별 도시성장 예측)

  • Kim, Jin Soo;Park, So Young
    • Journal of Korean Society for Geospatial Information Science
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    • v.21 no.2
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    • pp.53-62
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    • 2013
  • Land-use/cover changes not only amplify or alleviate influence of climate changes but also they are representative factors to affect environmental change along with climate changes. Thus, the use of land-use/cover changes scenario, consistent climate change scenario is very important to evaluate reliable influences by climate change. The purpose for this study is to predict and analyze the future urban growth considering social and economic scenario from RCP scenario suggested by the 5th evaluation report of IPCC. This study sets land-use/cover changes scenario based on storyline from RCP 4.5 and 8.5 scenario. Urban growth rate for each scenario is calculated by urban area per person and GDP for the last 25 years and regression formula based on double logarithmic model. In addition, the urban demand is predicted by the future population and GDP suggested by the government. This predicted demand is spatially distributed by the urban growth probability map made by logistic regression. As a result, the accuracy of urban growth probability map is appeared to be 89.3~90.3% high and the prediction accuracy for RCP 4.5 showed higher value than that of RCP 8.5. Urban areas from 2020 to 2050 showed consistent growth while the rate of increasing urban areas for RCP 8.5 scenario showed higher value than that of RCP 4.5 scenario. Increase of urban areas is predicted by the fact that famlands are damaged. Especially RCP 8.5 scenario indicated more increase not only farmland but also forest than RCP 4.5 scenario. In addition, the decrease of farmland and forest showed higher level from metropolitan cities than province cities. The results of this study is believed to be used for basic data to clarify complex two-way effects quantitatively for future climate change, land-use/cover changes.

Analysis of the Impact of Initial Carbon Emission Permits Allocation on Economic Growth (초기 탄소배출권 배분이 경제성장에 미치는 영향 분석)

  • Park, Sunyoung;Kim, Dong Koo
    • Environmental and Resource Economics Review
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    • v.20 no.2
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    • pp.167-198
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    • 2011
  • The Korean government recently announced greenhouse gases (GHG) emissions reduction target as 30% of 2020 business as usual (BAU) emission projection. As carbon emissions trading is widely used to achieve reductions in the emissions of pollutants, this study deals with the sectoral allocation of initial carbon emission permits in Korea. This research tests the effectiveness of a variety of allocation rules based on the bankruptcy problem in cooperative game theory and hybrid input-output tables which combines environmental statistics with input-output tables. The impact of initial emission permits allocation on economic growth is also analyzed through green growth accounting. According to the analysis result, annual GDP growth rate of Korea is expected to be 4.03%, 4.23%, and 3.67% under Proportional, Constrained Equal Awards, and Constrained Equal Losses rules, respectively. These rates are approximately from 0.69% points to 0.13% points lower than the growth rate of 4.36% without compulsory $CO_2$ reduction. Thus, CEA rule is the most favorable in terms of GDP growth. This study confirms the importance of industry level study on the carbon reduction plan and initial carbon emission permits should reflect the characteristic of each industry.

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