There is very high preference for the firms to locate in the Capital region, the City of Seoul and its surrounding areas, which inevitably meets diverse types of regulations to prevent over-concentration in Korea. In order to suggest an urgent need to reform these regulations, the demand for knowledge-based industries is estimated. A legit model is employed to estimate the demand of relocation of the current firms based on a survey conducted in 2001. A logistic curve is used to forecast the demand of new start-ups in Korea. The lands for industrial use only are estimated as many as 2.1 million~3.9 million pyung(1 pyung=3.3$m^2$) in nation-wide. Considering affiliate facilities and infrastructures, 3.1 million~5.9 million of industrial area should be developed in Korea for next five years. Since the rents are very high and the available land is short in the southern parts of Seoul, where most knowledge-based firms locate right now. Many firms have considered relocating on any other places where there exist a plenty of lands available and cheaper rents and cheaper wage rates, but still not far away from Seoul so that they could obtain new advanced information, skilled labors, venture capitals, and high quality of producer services. The Capital region, especially Gyeonggi and Incheon, is the only place to meet those conditions in Korea.
It is known that weak competitiveness of micro enterprises can be overcome when they are organized with enterprise associations, franchise systems, and joint affiliation. In this paper, we empirically analyze the determinants of organization of micro enterprises, and propose the policy implementations to enhance the competitiveness of micro enterprises as a measure to reduce trade conflict due to SSM entry restrictions. Logit estimation results based on survey data consisted of 467 samples, show that insufficient labor force and high material costs had negative effects on organization. The unexpected findings generally support the rationale that organization is not helpful to solve insufficient labor force and high material costs. However, the decrease in sales due to the economic recession and the decreasing number of customers due to customer transition to large enterprises had a more positive effect on organization than usually expected. There are differences in estimation results between two types of business(restaurants and retail). In case of the restaurant business, insufficient labor force, high material costs and a decreasing of number of customers are important factors for organization, while the sales decrease is a relatively important factor in the case of retail businesses.
This paper estimates the demand of newly married couples for public rental housing in Chungnam. This research attempts to overcome data limitations by linking survey data with administrative data for analysis. First, the results of a binary logit model that analyzes newly married couples' intention to move into public rental housing, based on the Chungnam Social Survey 2019, reveal that residential location, educational level, housing type, and tenure type have a statistically significant effect. By combining the estimated coefficients with another dataset, the statistics of newly married couples for administration purposes acquired from Statistics Korea, this research estimates the demand for public rental housing among the newly married couples in Chungnam. The estimation results show that the total demand for public rental housing in Chungnam is 11,424 units among 43,705 newly married couples. The total demand of 21,685 newly married couples who occupy rental housing is estimated to be 9,436 units. The policy for providing public rental housing to newly married couples in Chungnam aims to increase their fertility rates. Hence, further research should be followed up to evaluate the effect of the supply of public rental housing on fertility rates. Also, a research method should be developed to control for possible endogeneity between the demand for public rental housing and childbirths.
Forest museums can be defined as facilities for the collection, exhibition, and education of the forest or forest related artifacts or data. This study was performed to measure the educational value of Gyeongnam state forest museum's forest and its environment. The tool used was the Contingent Valuation Methods (CVM) which is well known as a value estimation tool of environmental goods. The study for the value estimation is performed from April, 2014 to October of the same year through selection of the subject, decision of proposed price, and orientation of the survey staffs and total of 386 surveys were used in analysis. The value estimation tool used the DBDC logit model and the input parameters were number of visit (time), degree of environmental education (contri), the environment conservation effort of the respondent (execu), the education level of the respondent (edu), and income of the respondent (inc) and trimmed mean (WTPtruncated) was used. The estimated value of flora and environment education per each person per visit is 23,338 won. When applied to the average annual visitors deducted from 2010 to 2014, which is 430,000 per year, the environmental value that Gyeongnam state forest museum is providing to visitors each year is about 10 billion won. The result of this study is significant to propose the value of forest education and environment that the forest museum is offering to the visitors in the current currency. This is an evidence to directly determine the value of the forest museum and therefore proposing an opportunity change the recognition toward the forest and environment education.
This study applied choice experiment(CE) method(which is included in the stated preference method) to estimate values of some important attributes(i.e. type of estuary, water quality of river in estuary, water quality of sea in estuary, biodiversity level of estuary) of 4 major river(Hangang, Guemgang, Yeongsangang, Nakdonggang) estuaries in Korea. Although the multinomial logit model(MNL) is generally applied to analyse the CE data, testing for IIA assumption with the Hausman and McFadden test in MNL model shows that the IIA assumption in our data is rejected. Therefore, the heteroscedastic extreme value model(HEV) and the multinomial probit model(MNP) which are not based on the IIA assumption are used to analyse our CE data. As results, the coefficients and the elicited economic values of MNL model are seriously distorted if the IIA assumption is not satisfied in MNL model. The estimation results of MNP model show that the economic values are elicited as 352.3 billion won(95% C.I. 261.1 - 477.8 billion won) for natural estuary, 411.5 billion won(95% C.I. 338.5 - 525.5 billion won) for one grade improvement of river water quality in estuary, 358.9 billion won(95% C.I. 292.5 - 457.0 billion won) for one grade improvement of sea water quality in estuary, and 151.9 billion won(95% C.I. 99.0 - 218.6 billion won) for one grade improvement of biodiversity level of estuary. Therefore, the value of estuary is reached to 2,197.0 billion won(95% C.I. 1,721.0 - 2,879.9 billion won) if any natural estuary in 4 major rivers has good water quality of river in estuary(i.e. 2nd grade), good water quality of sea in estuary(i.e. 1st grade), and good biodiversity level of estuary.
Vehicle-to-Grid (V2G) system, bi-direction power trading technology, enables drivers possessing electric vehicle to sell the spare electricity charged in the vehicle to power distribution company. The drivers gain profit by charging electricity in the day time of high electricity rate. In this regard, the government is preparing the policies of building and supporting V2G infrastructure and demanding the potential consumers' preference for the V2G system. This paper attempts to analyze the consumers' preference using the data from obtained a survey of randomly selected 1,000 individuals. To this end, choice experiment, an economic technique, is employed here. The attributes considered in the study are residual amount of electricity, electricity trading hours, required plug-in time, and price measured as an amount additional to current gasoline vehicle price. The multinomial logit model, which requires the assumption of 'independence of irrelevant alternatives', is applied but the assumption could not be satisfied in our data. Thus, we finally utilized nested logit model which does not require the assumption. All the parameter estimates in the utility function are statistically significant at the 10% level. The estimation results show that the marginal willingness to pay (MWTP) for one hour increase in electricity trading hours is estimated to be KRW 1,601,057. On the other hand, a one percent reduction in residual amount of electricity and one hour reduction in required plug-in time in V2G system are computed to be KRW -91,911 and -470,619, respectively. The findings can provide policy makers with useful information for decision-making about introducing and managing V2G system.
An arboretum is defined as a collection of facilities that conserve plant species by surveying, collecting, and proliferating and preserving the plants in nature, perform diverse researches on plants and display the plants in exhibition spaces or outdoors as well as provide the public with educational programs and refreshment spaces according to the laws concerned. The public, however, recognizes the exhibition and education functions on plants of arboretum more importantly compared with the roles to survey, collect, and proliferate plants as regulated by the laws. In particular, arboretum plays a role to offer a pivotal educational place in urban area where the public can obtain an hands-on experience and understanding on a wide range of plant species and natural environment. The study aims to estimate the non market environmental values of Daegu Arboretum operated by Daegu Metropolitan City government by using the Contingent Valuation Methods (CVM), which yields the current monetary estimates for the arboretum. The value estimation was undertaken by using the Double-Bound Dichotomous Choice (DBDC) method, and each estimated value was derived from respective functions based on a logit distribution known to include relatively stable estimates according to the shape of the distribution. Considering the statistical fitness test results, the author estimated the amounts of the Willingness To Pay (WTP) such as mean WTP of 12,718 KRW, median WTP of 11,033 KRW, and truncated mean WTP of 11,468 KRW, which represented the annual recreational values per a person visiting Daegu Arboretum respectively. The analysis showed that Daegu Arboretum created the annual environmental values which were estimated to be approximately 16 to 19 billion KRW. The study also has an implication that the valuation method for the environment of Daegu Arboretum may be effectively applied for estimating the values of other types of environmental goods by altering the locations or goods to be analyzed.
Journal of the Korean Regional Science Association
/
v.33
no.3
/
pp.61-78
/
2017
Among several policies for industrial decentralization introduced since the 1960s, business relocation grant policies put a heavy financial burden on central and local governments. This study investigates the change in the likelihood of manufacturing establishments' relocation to the non-SMA associate with the change in business relocation grant policies. Using the mining and manufacturing survey data from 1996 to 2014, manufacturing firms' relocation decision model in nested logit structure was estimated. The data showed that the proportion of movements from the SMA to the non-SMA significantly increased after the introduction of the grant policies. However, estimation results of firms' relocation decision model indicated that the likelihood of firms relocating from the SMA to the non-SMA decreased after the introduction of the grant policies. In particular, firms' likelihood to move into the rural regions is even lower in the period of the grant extension. This suggests that increasing rate of relocations toward the rural regions may have been driven by the growing advantage of rural locations, such as low land rent and improvement in market accessibility, rather than the grants per se. This implies that the alleviation of physical and environmental constraints of the rural regions and the creation of business friendly environment such as easy access to premises at reasonable prices and strengthened linkage with the SMA, rather than simple provision of business relocation grants, needed to attract businesses in the rural regions.
Lee, Back Jin;Lee, Se Hong;Lee, Yun Seok;Lee, Deok Hwan
KSCE Journal of Civil and Environmental Engineering Research
/
v.35
no.4
/
pp.875-886
/
2015
By promoting the international transportation and the improvement of advanced exchange between South and North Korea, the Asian Highway plan was expected to make considerable economical effects in the North-East Asian region. This study focuses on a part of AH6 route (i.e., South Korea-North Korea-China-Far East Russia) and aims to analyze the behavioral change of international passenger transport around the Korean Peninsula by assuming the non-existent North Korea land transport network connectivity. The study was performed using two main methods. First, a stated preference survey was performed to derive the actual modal share of each travel mode. Second, a disaggregate analysis was performed to develop possible mode-choice models for international passenger travel and find out the suitable choice. Based on the results of the model estimation, it is found that over 90% of the international passenger transport would be converted to land transport (rail+highway). In addition, international railroad modal share rate would be increased from 62.8% to 66.1% and international bus would be decreased from 29.6% to 21.9% as the distance lengthened (903km~1,631km).
Price rigidity involves prices that do not change with the regularity predicted by standard economic theory. It is of long-standing interest for firms, industries and the economy as a whole. However, due to the difficulty of measuring price rigidity and price adjustments directly, only a few studies have attempted to provide empirical evidence for explanatory theories from Economics and Marketing. This paper proposes and validates a research model to examine different theories of price rigidity and to predict what variables can explain the observed empirical regularities and variations in price adjustment patterns of Internet-based retailers. I specify and test a model using more than 3 million daily observations on 385 books, 118 DVDs and 154 CDs, sold by 22 Internet-based retailers that were collected over a 676-day period from March 2003 to February 2005. I obtained a number of interesting findings from the estimation of our logit model. First, quality seems to play a role-I find that both price levels as proxies for store quality, and information on the quality of a product consumers have, affect online price rigidity. Second, greater competition(i.e., less industry concentration) leads to less price rigidity(i.e., more price changes) on the Internet. I also find that Internet-based sellers more frequently change the prices of popular products, and the sellers with broader product coverage change prices less frequently, which seem due to economic forces faced by these Internet-based sellers. To the best of my knowledge, this research is the first to empirically assess price rigidity patterns for multiple industries in Internet-based retailing, and attempt to explain the variation in these patterns. I found that price changes are more likely to be driven by quality, competitive and economic considerations. These results speak to both the IS and economics literatures. To the IS literature these results suggest we take economic considerations into account in more sophisticated ways. The existence and variation in price rigidity argue that simplistic assumptions about frictionless and completely flexible digital prices do not capture the richness of pricing behavior on the Internet. The quality, competitive and economic forces identified in this model suggest promising directions for future theoretical and empirical work on their role in these technologically changing markets. To the economics literature these results offer new evidence on the sources of price rigidity, which can then be incorporated into the development of models of pricing at the firm, industry and even macro-economic level of analysis. It also suggests that there is much to be learned through interdisciplinary research between the IS, economics and related business disciplines.
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