• The Journal of Industrial Distribution & Business
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• v.9 no.5
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• pp.63-72
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• 2018

Purpose - This work analyzes, in detail, the specification of vector error correction model (VECM) and thus examines the relationships and impact among seven economic variables for USA - balance on current account (BCA), index of stock (STOCK), gross domestic product (GDP), housing price indices (HOUSING), a measure of the money supply that includes total currency as well as large time deposits, institutional money market funds, short-term repurchase agreements and other larger liquid assets (M3), real rate of interest (IR_REAL) and household credits (LOAN). In particular, we search for the main explanatory variables that have an effect on stock and real estate market, respectively and investigate the causal and dynamic associations between them. Research design, data, and methodology - We perform the time series vector error correction model to infer the dynamic relationships among seven variables above. This work employs the conventional augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root techniques to test for stationarity among seven variables under consideration, and Johansen cointegration test to specify the order or the number of cointegration relationship. Granger causality test is exploited to inspect for causal relationship and, at the same time, impulse response function and variance decomposition analysis are checked for both short-run and long-run association among the seven variables by EViews 9.0. The underlying model was analyzed by using 108 realizations from Q1 1990 to Q4 2016 for USA. Results - The results show that all the seven variables for USA have one unit root and they are cointegrated with at most five and three cointegrating equation for USA. The vector error correction model expresses a long-run relationship among variables. Both IR_REAL and M3 may influence real estate market, and GDP does stock market in USA. On the other hand, GDP, IR_REAL, M3, STOCK and LOAN may be considered as causal factors to affect real estate market. Conclusions - The findings indicate that both stock market and real estate market can be modelled as vector error correction specification for USA. In addition, we can detect causal relationships among variables and compare dynamic differences between countries in terms of stock market and real estate market.

• Asia Marketing Journal
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• v.14 no.2
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• pp.157-176
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• 2012

Brand switching data frequently used in market structure analysis is adequate to analyze non- durable goods, because it can capture competition between specific two brands. But brand switching data sometimes can not be used to analyze goods like automobiles having long term duration because one of main assumptions that consumer preference toward brand attributes is not changed against time can be violated. Therefore a new type of data which can precisely capture competition among durable goods is needed. Another problem of using brand switching data collected from actual purchase behavior is short of explanation why consumers consider different set of brands. Considering above problems, main purpose of this study is to analyze market structure for durable goods with consideration set. The author uses exploratory approach and latent class clustering to identify market structure based on heterogeneous consideration set among consumers. Then the relationship between some factors and consideration set formation is analyzed. Some benefits and two demographic variables - age and income - are selected as factors based on consumer behavior theory. The author analyzed USA automotive market with top 11 brands using exploratory approach and latent class clustering. 2,500 respondents are randomly selected from the total sample and used for analysis. Six models concerning market structure are established to test. Model 1 means non-structured market and model 6 means market structure composed of six sub-markets. It is exploratory approach because any hypothetical market structure is not defined. The result showed that model 1 is insufficient to fit data. It implies that USA automotive market is a structured market. Model 3 with three market structures is significant and identified as the optimal market structure in USA automotive market. Three sub markets are named as USA brands, Asian Brands, and European Brands. And it implies that country of origin effect may exist in USA automotive market. Comparison between modal classification by derived market structures and probabilistic classification by research model was conducted to test how model 3 can correctly classify respondents. The model classify 97% of respondents exactly. The result of this study is different from those of previous research. Previous research used confirmatory approach. Car type and price were chosen as criteria for market structuring and car type-price structure was revealed as the optimal structure for USA automotive market. But this research used exploratory approach without hypothetical market structures. It is not concluded yet which approach is superior. For confirmatory approach, hypothetical market structures should be established exhaustively, because the optimal market structure is selected among hypothetical structures. On the other hand, exploratory approach has a potential problem that validity for derived optimal market structure is somewhat difficult to verify. There also exist market boundary difference between this research and previous research. While previous research analyzed seven car brands, this research analyzed eleven car brands. Both researches seemed to represent entire car market, because cumulative market shares for analyzed brands exceeds 50%. But market boundary difference might affect the different results. Though both researches showed different results, it is obvious that country of origin effect among brands should be considered as important criteria to analyze USA automotive market structure. This research tried to explain heterogeneity of consideration sets among consumers using benefits and two demographic factors, sex and income. Benefit works as a key variable for consumer decision process, and also works as an important criterion in market segmentation. Three factors - trust/safety, image/fun to drive, and economy - are identified among nine benefit related measure. Then the relationship between market structures and independent variables is analyzed using multinomial regression. Independent variables are three benefit factors and two demographic factors. The result showed that all independent variables can be used to explain why there exist different market structures in USA automotive market. For example, a male consumer who perceives all benefits important and has lower income tends to consider domestic brands more than European brands. And the result also showed benefits, sex, and income have an effect to consideration set formation. Though it is generally perceived that a consumer who has higher income is likely to purchase a high priced car, it is notable that American consumers perceived benefits of domestic brands much positive regardless of income. Male consumers especially showed higher loyalty for domestic brands. Managerial implications of this research are as follow. Though implication may be confined to the USA automotive market, the effect of sex on automotive buying behavior should be analyzed. The automotive market is traditionally conceived as male consumers oriented market. But the proportion of female consumers has grown over the years in the automotive market. It is natural outcome that Volvo and Hyundai motors recently developed new cars which are targeted for women market. Secondly, the model used in this research can be applied easier than that of previous researches. Exploratory approach has many advantages except difficulty to apply for practice, because it tends to accompany with complicated model and to require various types of data. The data needed for the model in this research are a few items such as purchased brands, consideration set, some benefits, and some demographic factors and easy to collect from consumers.

• The Journal of Asian Finance, Economics and Business
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• v.1 no.1
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• pp.15-21
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• 2014

This study investigates extensively the integration of various segments of financial markets (i.e. money market, lending and deposit market, exchange rate market, and capital market) both domestically and internationally. Cointegration approach is employed in the study to find out long term relationship among the variables. Data are on a monthly interval for the period spreads over 2001 to 2010. The results show no evidence of cointegration between money market and exchange rate market and between capital market and exchange rate market of Pakistan. On the other hand, international financial markets integration is also investigated and the findings revealed that domestic money market rates of Pakistan and USA are not cointegrated. Whereas, an evidence of cointegration between capital markets of Pakistan and USA is found in this study.

• The Journal of Economics, Marketing and Management
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• v.5 no.3
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• pp.30-38
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• 2017

The main target to do this analysis is to find out the competitiveness between 2 countries(Korea and USA) in the ship business industry. Ever since free from Japanese empire domination of modern history in Korean peninsular, Korea has been strong relationship with USA almost every fields. The purpose of this research is to realize which country is more competitive between 2 country's trade structure. This research conducted for period from 2000 to 2016. Expecting effect is to learn how to improve ship industry for 2 countries. Research method is used by comparative advantage trade theory. Even though Koran government has been accomplishing trade stimulus environment against USA ship industry, it is research limitation that overseas productions both Korean & USA are not available due to company business strategy. From early 50's, every USA industries hold a dominant position so far. Now, Korea is comparative advantage against that of USA in the field of ship industry. Sound competition relationship is good for both 2 countries for mutual benefits. The future prospect is Korea needs export market diversification to enlarge economic growth in the long run.

• East Asian Journal of Business Economics (EAJBE)
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• v.7 no.3
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• pp.49-61
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• 2019

Purpose - This study shows that which country has more competitiveness in aerospace industry. The reason why author choose aerospace industry for research is aerospace industry is one of major business in every country in the world instead of infant industry. Research design and methodology - In order to research this topic, there are 3 tools to analyze competitiveness in aerospace industry. To achieve analysis of competitiveness between USA and England, UN comtrade program which provides huge database including time serial data. Results - All of TSI are over zero (0) which means that from 2000 to 2018, USA aerospace industry is export specialization as USA aerospace industry has comparative advantage against England aerospace industry. All of TSI in USA are approaching to figure +1 as export specialization except 2010. Conclusions - Even though RCA value in 2000 is 6.313, however, when time goes by and they are 8.997 in 2005, 8.007 in 2010 and 8.389 in 2015 respectively and RCA value is slightly going down as figure 7 in 2018. we review above market share analysis data, USA has overpoweringly superior competitive power against British aerospace industry.

• The Journal of Industrial Distribution & Business
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• v.4 no.2
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• pp.13-19
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• 2013

Purpose - The paper tested the relationship between the stock markets of the Middle East and the USA with the oil price and US dollar index as threshold variables. Research design, data, and methodology - The stock price indices of the USA, the Middle East (Abu Dhabi, Jordan), WTI spot crude oil price, and US dollar index were daily returns in the research period from May 21, 2001 to August 9, 2012. Following Hansen (1999), the panel threshold regression model was used. Results - With the US dollar index as the threshold variable, a negative relationship existed between the stock price indices of Jordan and the USA but no significant result was found between the stock price indices of Abu Dhabi and the USA. Conclusions - The USA is an economic power today:even if it has a closer relationship with the US stock market, the dynamic US economy can learn about subsequent developments and plan in advance. Conversely, if it has an estranged relationship with the US stock market, thinking in a different direction and different investment strategies will achieve good results.

• Journal of Labour Economics
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• v.27 no.2
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• pp.117-138
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• 2004

The purpose of this article is to show a model on enhancing labor market flexibility and to compare labor market flexibility, considering that the model on labor market flexibility, universally acceptable, are not found. The writer classified the scope of labor market flexibility into three parts such as indirect adjustment, direct adjustment and policy adjustment. The writer further classified the contents of labor market flexibility into eleven sub-parts. This kind of classification regarding labor market flexibility is unique and comprehensive. Based on this classification, the writer measured the degree of labor market flexibility of four countries such as USA, Japan, Germany, and Korea. According to the results, the ranks of labor market flexibility are USA, Japan, Korea, Germany.

• Journal of Agricultural Extension & Community Development
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• v.14 no.1
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• pp.29-57
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• 2007

Korea and USA reach an agreement with FTA. Korea's National Assembly will be to ratify the FTA. Korean agriculture was insufficiently competitive. FTA will be inflicted severe losses to Korean agriculture. But taking for granted that neoliberalism and economic globalization as the irrevocable currency of the international economic order, it is time to devote ourselves into discussing appropriate responses policy to minimize domestic agricultural loss and to improve agricultural competitiveness. There will never be another opportunity like this. It's now or never. Korean government and farmer have done various things, but basically their effort have to concentrate on three forms: fill the needs of an old market, create a need and a new export market, and adapt to a new market. This paper was an exploratory study of Korea－USA. FTA and paving the way for further studies on FTA in Korean agriculture. The objectives of this study Korea and USA reach an agreement with FTA. Korea’s National Assembly will be to ratify the FTA. Korean agriculture was insufficiently competitive. FTA will be inflicted severe losses to Korean agriculture. But taking for granted that neoliberalism and economic globalization as the irrevocable currency of the international economic order, it is time to devote ourselves into discussing appropriate responses policy to minimize domestic agricultural loss and to improve agricultural competitiveness. There will never be another opportunity like this. It's now or never. Korean government and farmer have done various things, but basically their effort have to concentrate on three forms: fill the needs of an old market, create a need and a new export market, and adapt to a new market. This paper was an exploratory study of Korea－USA. FTA and paving the way for further studies on FTA in Korean agriculture. The objectives of this study were 1)to explore the agricultural policy of Korean government, 2)and to explore the present condition of Korean agriculture, 3)and looking for responses direction of Korean agricultural policy to FTA, 4)to strengthen the competitiveness of Korean agriculture. Korean government give a subsidy not to strengthen the competitiveness but to soothe the dissatisfaction. It is necessary for Korean government to switch from public money investment to strengthen the competitiveness.

• Journal of the Korean Home Economics Association
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• v.37 no.11
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• pp.19-32
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• 1999

This study analyzed the curricula of fashion related majors at 4-year colleges in the USA, UK, Japan and Hong Kong as well as in Korea and compared the characteristics of the Korean curriculum with those of the four countries. A total of 124 curricula from 103 colleges were collected. Courses were divided into eight categories (including industry and market information; materials; merchandise planning; design; production; distribution and selling; basics; and consumption) representing the production and distribution process of fashion business. There were differences in course offerings among the five countries. Overall, curricula in Korea emphasized design and production (construction) areas and showed not much differentiation among colleges. While industry and market information, merchandise planning, and production (management) areas were emphasized in the USA , differentiation/specialization by major was observed . UK and Hong Kong had well-specialized curricula by major Japan seemed to offer traditional and consumption oriented courses. Based on the findings, some propositions for the Korean fashion curriculum were discussed.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.14 no.2
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• pp.45-55
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• 2006

Air transportation industry becomes more competitive because that the restrictions on new access to market were eased and related enough for each airline to choose the freight rate and the route without rein. New competitors are pursuing convergence strategy which focuses on low freight rate as a niche strategy for increasing market share by stimulating low cost demand. This strategy is now spreading all over the world such places as Europe, Asia, Oceania and etc. As of December 1, 2004, hundreds of low cost carriers are participating actively in the market and finding their level as a new strategic group in the air transportation industry with expanding their market. In case of USA, however, many airlines, which had newly entered to the market, went into bankruptcy in the mid-1980s. People Express in USA established in 1980 is one of the examples of failure. In case of Japan, Hokkaido International Airline, a typical low cost carrier which established in 1997, filed for bankruptcy. This study is for examining the strategic implication closely through the study on management strategy and cases of failure of low cost carriers.