• Environmental and Resource Economics Review
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• v.16 no.1
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• pp.171-197
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• 2007

In this paper we provide a methodology that permits test of feasibility of Porter hypothesis under limited data environment by utilizing two types of output distance function: Shephard distance function and directional distance function. The production technology supported by Porter hypothesis is embodied in the directional distance function. The average annual marginal abatement cost for $SO_2$ obtained by estimating the directional distance function is higher than the one obtained with the Shephard distance function by about 50 percent in the Korean electric power industry over the period 1970~1998. This result implies that feasibility of Porter hypothesis depends upon whether investment in production capital and process can bring more than a 50 percent increase in the average productivity.

• Environmental and Resource Economics Review
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• v.26 no.4
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• pp.473-498
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• 2017

This study examines the effect of environmental regulation considering the endogeneity on the productivity of Korean manufacturing industry based on the Porter hypothesis using data from the Mining and Manufacturing Survey, Survey of Research and Development in Korea, and Environmental Statistics Portal from 2003 to 2013 with fixed effect model. In order to eliminate the bias of the missing variables that may occur in the existing studies, we analyze factors affecting productivity such as market competition, R&D investment as explanatory variables. And, in order to eliminate measurement error and inverse causality, we use instrumental variable approach. The main results are as follows. First, our findings that the environmental regulation improve the productivity of Korean manufacturing in the long-run support the Porter hypothesis. Second, our findings suggest that measurement error and reverse causality are main sources of the endogeneity, while omitted variable is not. Finally, environmental technology R&D has reduced productivity in the short-run.

• Environmental and Resource Economics Review
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• v.18 no.1
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• pp.75-103
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• 2009

The hypothesis suggested by Porter and van der Linde claims that innovating firms operate in a dynamic competitive situation which allows global diffusion of environmental-friendly technologies. Therefore, countries that are subjects to more stringent environmental regulations may become net exporters of environmental technologies. In the context of Porter hypothesis, this study investigates the impact of importing countries' environmental regulation on Korea and Japan's export flows of technologies for renewable energies and energy efficiency by estimating the gravity equation. The estimation result shows that : (1) our results are consistent with the Porter hypothesis where environmental regulation represents a significant source of comparative advantages, (2) Korea's export flows of technologies for renewable energies and energy efficiency with respect to the importing countries' environmental regulation are more sensitive than Japan's, and (3) the adverse relationship between export flows and importers' environmental stringency in developing countries does not hold in the renewable energies and energy efficiency related sector.

• Environmental and Resource Economics Review
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• v.22 no.4
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• pp.785-815
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• 2013

This paper analyzes the three issues related to the effect of environmental regulations on the Korean trades with gravity equation model: the effect on the Korean exports, the bilateral trade flows between the Korea and the trade partners, and the Korean international competitiveness. For all three issues we carried the empirical tests with fixed effect estimation methods for total industries, non-pollution industries, pollution industries, and also 16 individual pollution industries. We use industry panel data for the 120 largest trading countries with Korea for the years 2000-2010. The Environmental Performance Index (EPI) is used as the proxy variable for the environmental regulation. The empirical result shows that while GDPs of both Korea and its trading partners are very important factors affecting positively the Korean trades for all industries, the environmental regulation of the importing country would be a definite trade barrier to the Korean pollution industries, but not a definite one for the non-pollution industries. In addition, the stricter environmental regulations of Korea's trade partners would weaken the Korean international competitiveness of Korean pollution industries. In this regard, the Porter Hypothesis would have not appeared in the Korean trades of pollution industries during the period observed in this study.

• Environmental and Resource Economics Review
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• v.22 no.2
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• pp.309-328
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• 2013

In this research, we try to find the conditions under which profit maximizing labor demand increases with pollution abatement activities under the environmental protection policy. Especially, we focus only on the technological advances in traditional production process caused by the spillover effect of pollution abatement technology. Even if Porter's hypothesis(1995) are given, we argue that it is not enough for the society to enjoy the benefits from the innovation with the strengthen of firms' competitiveness. To spread the benefits over economic agents in a society, especially including labor-owner, the current level of pollution abatement technology is important. When the level of pollution abatement technology is appropriate, both the environment protection and the job creation can be achieved through the government policy for environment protection.

• Journal of Digital Convergence
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• v.12 no.1
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• pp.177-192
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• 2014

In this study, To identify the member of an organization can be affected use of information technology and support of information technology how business strategy affected business performance. Also, This study is considered to be the epitome of corporate strategy in the Miles & Snow of the 'adaptation strategy' and Michael E. Porter of the 'fundamental competitive strategy' at the same time, by applying the existing business management strategy that can be applied to target compared to the type of management performance measures are presented for the purpose. the results of the study can be summarized as follows. First, Business strategies affect the financial performance for the hypothesis that Miles & Snow of the 'adaptation strategy' honor type of defensive strategy and financial performance and strategy management and positive impact on non-financial performance was found. Second, Management strategies affect the financial performance for the hypothesis that Michael E. Porter of the 'fundamental competitive strategies' overall cost leadership strategy and differentiation strategy of management and financial performance and non-financial performance was found to positively impact. Also, Business performance management strategy significantly positive affect, Business strategies with the characteristics of the relationship between management and Information technology utilization showed that the moderating effects.

• Environmental and Resource Economics Review
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• v.18 no.3
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• pp.523-544
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• 2009

The purpose of this paper is to estimate the impact of foreign direct investment on environmental performance for 27 OECD countries using endogenous environmental policy model. The empirical test shows that with 1% increase in the ratio of inflow stock of foreign direct investment over domestic capital stock, emission on NOx and $CO_2$ will increase by 0.0071%(NOx) and 0.0165%($CO_2$) and 1% increase in the ratio of foreign capital stock induces 0.044%(fixed effect) and 0.047%(random effect) of economic growth. 1% increase of per labor total output increases 2.038%(fixed effect) or 1.890%(random effect) in reinforcement of environmental regulation. However, we could not confirm the Porter's hypothesis that the more strong environmental regulation leads technical innovation. The scale effects (0.0119, 0.0172) are estimated higher than the technical effects (-0.0048, -0.0007) in two pollutants (NOx, $CO_2$). It implies that each country needs to increase pollution abatement and control expenditure more aggressively to protect environment.

• The Korean Journal of Financial Management
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• v.14 no.1
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• pp.23-50
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• 1997

Shiller(1981)와 LeRoy-Porter(1951)에 의하여 시작된 분산한계검증(分散限界檢證)(variance bounds test)에 관한 연구는 주식시장에서 초과변동성(超過變動性)(excess volatility)의 존재를 통하여 주식시장(株式市場)의 효율성(效率性)을 검증하는 새로운 연구분야로서 주목을 받아왔다. 그리고 이들의 연구방법론을 응용하여 많은 효율적(效率的) 시장가설(市場假說)의 검증에 대한 연구가 이루어져 왔다. 본(本) 연구(硏究)는 이러한 연구(硏究)의 한 범주로써 한국주식시장(韓國株式市場)에서 분산한계검증(分散限界檢證)을 통하여 약형효율성(弱形效率性) 시장가설(市場假說)을 검증(檢證)하고자 하였으며 이를 위하여 먼저 Shiller (1981)의 배당평가모형(配當評價模型)을 이용한 사후적(事後的)인 합리적(合理的) 주가(株價)인 $P_t{^*}$의 추정방법(推定方法) 대신에 이 배당평가모형(配當評價模型)을 변형하여 $P_t{^*}$를 추정(推定)하는 방법을 제시하였다. 그리고 이 $P_t{^*}$를 기초로 Shiller(1981)의 분산한계검증식(分散限界檢證式)을 변형한 분산한계검증(分散限界檢證)의 조건식(條件式)을 유도하고 이에 의해 실증적(實證的) 검증(檢證)을 하였다. 한편, 이러한 검증과정(檢證過程)에서 시계열자료(時系列資料)의 특성상 사전적(事前的)으로 필요로 하는 실제주가(實際株價), $P_t$와 사후적(事後的)인 합리적(合理的) 주가(株價), $P_t{^*}$에 대한 단위근검정(單位根檢定)(unit root test)을 실시하였다. 아울러 $P_t$와 $P_t{^*}$의 선형관계(線形關係)의 안정성을 검정하기 위하여 공적분검정(共積分檢定)(cointegration test)도 실시하였다. 검증결과(檢證結果), Shiller(1981)의 분산한계검증식(分散限界檢證式)을 변형하여 유도된 효율성조건(效率性條件)을 만족시키는 범위(範圍)에 벗어나 한국주식시장(韓國株式市場)에서 주식시장(株式市場)의 비효율성(非效率性)을 배제할 수 없는 것으로 나타났다.

• Journal of Technology Innovation
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• v.18 no.1
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• pp.199-218
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• 2010

When assessing environmental or other regulatory programs, economists and other policy analysts have traditionally used the approach that consists of comparing the benefits from regulation with the costs that must be borne to capture these benefits. The vast majority of economic analysis of regulation was based upon the assumption that regulations increase production costs. Porter had disputed this seemingly straightforward claim. In his view, economists had failed to incorporate the capacity of stringent regulations to induce innovation into their analysis. However, at the same time, the hypothesis had been criticized by economists. This study analyzed the determinants of innovation performances as well as activities of small and medium manufacturers, based on a recently held survey among mainly manufacturing SMEs in Korea. In particular, this study took the level of innovation activities, the strength of environmental regulations, and moreover the impediment that the company went through as factors. In addition, the characteristics of innovative SMEs were compared with the other counterparts. The empirical analysis revealed that the level of environmental awareness, existence of innovative activities, characteristics of firms, and moreover the innovation types are the most important determinants of SMEs’ innovation performance both in technology as well as in economic perspective.

• Journal of Navigation and Port Research
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• v.40 no.3
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• pp.129-138
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• 2016

Shipping companies involved in sea transportation service are exposed to uncertainty due to its volatile business environment. It is crucial that shipping companies take effective strategies to cope with uncertain business environments and to achieve high business performance. Using Porter's generic strategy, this study investigates the relationships between environmental uncertainty and competitive strategies, and the impact of competitive strategies on firm's business performance. To test hypotheses, OLS regressions and Tobit analysis were conducted on Korea shipping companies who provide global sea transportation service. The findings of this study can be summarized as follows. First, variation of environmental uncertainty affects cost-leadership strategy and differentiation strategy. Diversity of environmental uncertainty affects differentiation strategy, but not cost-leadership strategy. Second, firms attain business performance by using the cost-leadership strategy. That is, shipping companies can achieve high business performance by reducing their operating costs in the entire process of transportation service.