• Korean Journal of Agricultural Science
• /
• v.38 no.2
• /
• pp.383-391
• /
• 2011

Traditional international trade theory assumes that import goods and domestically produced goods of the same industry are equal in quality. However the substitutability of the two goods is imperfect. This article estimated the import functions of pulp and paper using econometric and vector autoregressive models, and calculated the elasticities of substitution between imported and domestically produced pulp and paper. The import of pulp is inelastic to import price and domestic price, and elastic to national income in econometric model. And it is inelastic to import price, domestic price and national income in vector autoregressive model. On the other hand, the import of paper is inelastic to domestic price, and elastic to import price and national income in econometric model. And it is inelastic to import price and domestic price, and elastic to national income in vector autoregressive model. The elasticity of substitution between imported and domestically produced pulp was positive, and the elasticity was respectively 0.42 and 0.20 in econometric and vector autoregressive models. This may be because of the high proportion of imports. On the other hand, the elasticity of substitution between imported and domestically produced paper was positive, and the elasticity was respectively 0.75 and 0.81 in econometric and vector autoregressive models. This may be because the quality of imported paper is different from that of domestically produced paper.

• Journal of Digital Convergence
• /
• v.15 no.11
• /
• pp.199-207
• /
• 2017

The business environment changing very fast with technology advance and convergence makes the role of R&D become more and more important to firms' success. By analyzing the 683 firm-level data of small and medium venture firms with the ordinary least squares regression, this study sheds new light on the following four points. First, small and medium venture firms' exterior R&D collaboration network heterogeneity positively impacts their import substitution from technology development. Second, the existence of the corporate R&D center moderates the positive impact of small and venture firms' exterior R&D collaboration network heterogeneity on their import substitution from technology development. Third, small and venture firms' exterior R&D information network heterogeneity positively impacts their import substitution from technology development. Fourth, The existence of the corporate R&D center moderates the positive influence of small and venture firms' exterior R&D information network heterogeneity on their import substitution from technology development.

• Korean Journal of Agricultural Science
• /
• v.43 no.3
• /
• pp.496-505
• /
• 2016

The purpose of this study was to investigate the economic effects of a flame retardant aluminum screen developed by a company Economic effects were analyzed in terms of micro and macro-economic aspects. In the macro-economic aspect, economic effects were analyzed under the assumptions that the total import volume of flame retardant aluminum screen was approximately $50m^2$ in 2015 and that possible import substitution rates were 100%, 80%, and 60%. Results showed economic values of 2.25 billion won (100% import substitution rates), 1.8 billion won (80% import substitution rates), and 1.35 billion won (60% import substitution rates). If existing farms which had been using imported flame retardant aluminum screen replaced it newly developed with the flame-retardant aluminum screen developed in this study at rates of 100%, 80%, and 60%, the farms could save 750 million won, 60 million won, and 45 million won, respectively. Furthermore, the social cost savings from fire prevention could be 1.184 billion won. In the micro-economic aspect, if a farm with a typical-size ($1,000m^2$) greenhouse growing red pepper wanted to install flame retardant aluminum screen instead of generic aluminum screen, the farm may only pay an additional cost of 720,000 won. In comparison, if the farm chose fire insurance instead of flame-retardant aluminum screen, then the farm would pay 21,000,000 won for fire insurance. The above results show that the economic effect of flame retardant aluminum screen developed by the company would be be very efficient compared to the imported one.

• Korean Journal of Agricultural Science
• /
• v.47 no.2
• /
• pp.337-347
• /
• 2020

Since 2012, despite the fact that tariff rate quotas (TRQ) in the form of dried peppers has not been imported, the imports of pepper-related items such as low- tariff frozen peppers (27%) and other sauces (45%) have increased, there has been a problem in the domestic pepper industry, in which the domestic self-sufficiency rate has declined. The purpose of this study was to find out whether the operation of chili pepper TRQ has the effect of suppressing the imports of pepper-related items from China. We analyzed the import substitution effect (import suppression effect) through causal analysis of the imports of red pepper TRQ, frozen peppers, and other sauces using the structural equation model analysis method. As a result of the hypothetical scenario analysis, when the government imports and releases 7,185 tons of pepper TRQ in 2019/20 (scenario), private imports were estimated to decrease by only 3,060 tons. In other words, the import substitution effect between imported items was estimated to decrease about 2,079 tons of private dried peppers, and about 981 tons of imported pepper-related items. There was an effect of suppressing the imports of pepper-related items such as frozen peppers, but it was analyzed to be insignificant. That reason was that the replacement substitution elasticity of the pepper-related items for TRQ import was less than 1 (inelastic). Therefore, it is judged that the government's operation of the pepper TRQ is preferably focused on stabilizing domestic prices rather than focusing on import control of pepper-related items.

• KDI Journal of Economic Policy
• /
• v.39 no.2
• /
• pp.1-23
• /
• 2017

Korea's rapid export expansion suddenly began in the early 1960s and boosted the economy. This paper's investigation finds that it began in 1961, as new export items appeared, export of which increased incomparably faster than that of the current export items at the time. How and why of this highly unusual phenomenon can best be explained by a major reform of foreign exchange system in February 1961. This goes against the widely held view that the switch in development policy from import substitution to export promotion in the mid-1960s was the reason for Korea's export success. Rather, the evidence indicates that the rapid export expansion led to the policy switch. The government's export promotion since the policy switch helped the rapid export expansion continue into the 1970s, despite the protectionist import policy.

• The Journal of Fisheries Business Administration
• /
• v.53 no.1
• /
• pp.55-72
• /
• 2022

The domestic catch of squid is decreasing every year. Import volume is increasing to replace these domestic products. Import volume is expected to increase in the future, so it is necessary to study import substitution. Therefore, in this study, after selecting frozen squid, which accounts for the majority of imported squid, as the target fish species, China, Chile and Peru, which account for the majority of frozen squid imports, will be selected as the target countries for analysis. Then, the demand function of squid is estimated using the Rotterdam model, the inverse Rotterdam model, AIDS and inverse AIDS, which are the simultaneous equation demand types, and then elasticity is derived. After that, these models are compared in terms of significance, theoretical fit and practical fit.

• Korean Journal of Organic Agriculture
• /
• v.30 no.1
• /
• pp.37-50
• /
• 2022

This study analyzes the impact of Import beer demand on Anti-Japanese sentiment. Recently anti-Japanese sentiment heightened by the media was found to be drastically reducing the consumption of Japanese beer in the domestic imported beer market. Thus, the study used the import demand function of imported beer to analyze the impact of the 'Priming Effect' on the consumption of imported beer by anti-national sentiment, indicating a significant drop in Japanese beer consumption in other countries. Therefore, this study used the imported beer import demand function by country to analyze the impact of the priming effect on imported beer consumption according to anti-national sentiment. As a result, in the case of imported beer consumption in other countries, it was estimated that indirect consumption substitution occurred considerably.

• Journal of Korea Trade
• /
• v.26 no.7
• /
• pp.1-18
• /
• 2022

Purpose - Recent international studies have largely focused on measuring the welfare gains from increased trade varieties. To adequately capture the variety gains, it is of importance to estimate the elasticity of substitution between varieties of trade goods because it is one of the key parameters to determine the magnitude of the variety gains. Using the import data of South Korea, this paper shows that the elasticities vary substantially across the estimators, which affects the magnitude of the gains from trade. Design/methodology - Empirical studies working on the gains from trade variety have heavily depended on the estimation methods for the elasticity of substitution between trade varieties, developed by Feenstra (1994) and refined by Broda and Weinstein (2006). We estimate and compare the estimated elasticities for 8,945 HS 10 goods of South Korea, obtained from the three estimation methods: Feenstra's weighted least square (F-WLS), Feenstra's feasible generalized least square (F-FGLS), and Broda and Weinstein's feasible generalized least square (BW-FGLS). Findings - Using the estimated elasticities from the F-FGLS, considered as a suitable estimator, A typical Korean consumer saved 228 dollars per year by the greater access to new import varieties. This leads to gains from imported variety of 2.06% of GDP. In 2017, a typical Korean consumer would gain by 611 dollars, compared with 2000. China is the country with the largest contribution (28.4%), followed by Japan and USA. About 50% of all the welfare gains come from the imports from the three main trade partners. The Southern Asian countries are more important to the South Korean welfare gain than the Western European countries. Originality/value - Existing studies have chosen one of the methods without any criterion for the choice and then estimated the elasticities of substitution between varieties of trade goods. This paper focuses on the estimation specifications and methods as the cause of the disparity in estimated elasticities and welfare gains from trade variety. According to the Ramsey RESET and White tests, the F-FGLS estimates are relatively better compared to the F-WLS and BW-FGLS estimates. As another contribution, this paper provides the first measure of the welfare gains from trade variety for South Korea, using the estimated elasticities of substitution between trade varieties.

• Journal of Korea Technology Innovation Society
• /
• v.4 no.1
• /
• pp.96-109
• /
• 2001

The aim of this paper is to analyse the impacts on domestic production, value added, employment and import substitution of national technological information activities, using the 1995 Input-Output Tables in Korea. The total output of technological information amounted to 4,167 billion won at current prices. The total domestic output of 2,318 billion won was generated directly and indirectly and the amount of value added totaled 3,773 billion won. 119 thousand new jobs were created and total import substitution amounted to 1,346 billion won. As an increase of 4,167 billion won in technological information sector led to an increase of 7,437 billion won in total socio-economic repercussion effects, the multiplier was 1.8 in 1995.

• Proceedings of the KSR Conference
• /
• 2007.11a
• /
• pp.1694-1714
• /
• 2007

This study is to estimate economic benefits of Standardization R&D of Urban Rail System. Benefit was to be realized through standardization of main areas such as train vehicle, railway, power system, and signal system. To derive and calculate the quantitative benefit, the sources of economic impact was divided into three dimensions -operational cost savings, import substitution, and safety effects. Economic effect of the standardization was categorized based on a modified BSC model. Economic benefits from time and labor savings are converted into cost savings. Import substitution and investment multiplier effect have a positive impact in addition to cost savings. The estimation of the standardization R&D of Urban Rail System was conservatively estimated 370 billion Won. Cost effectiveness of standardized safety system was conservatively translated into economic benefit in this analysis. This study provides a practical guide to economic evaluation of the various railway R&D projects.