• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.6
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• pp.109-115
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• 2014

Sales of online games companies that began from the small and medium-sized ventures, have grown to billions or hundreds of million dollars to target the global market. The issues related with industrial policies and regulations for game industry gain attentions. In particular, the Korean government has strengthened the relevant regulations of the webboard game service across many departments within the government such as Media Rating Commission, Game Products Administrative Committee, Ministry of Culture, Tourism and Sports, and Ministry of Female and Family. In this study, we analyze the effects of government regulation on webboard games using a VECM(Vector Error Correction Model). We have acquired the Gametrix time-series data during a year since July 2013. Having the co-integration estimated in the analysis process, we attempt to identify the long-term equilibrium relationship within webboard game industry and predict use time in near future. The results show that the use time has decreased to a third to a fourth comparing to the initial value at the beginning point in 2013. Two representative webboard games are exposed to the significant risks to have less or no use time. Additionally, we discuss the issues of the overall game industry influenced by the changes of webboard games.

• Korea Trade Review
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• v.48 no.3
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• pp.69-88
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• 2023

This study analyzes the dynamic characteristics of cargo volume (demand), ship fleet (supply), and freight rate (price) of container, dry bulk, and tanker shipping markets by using the VAR and VECM models. This analysis is expected to enhance the statistical understanding of market dynamics, which is perceived by the actual experiences of market participants. The common statistical patterns, which are all shown in the three shipping markets, are as follows: 1) The Granger-causality test reveals that the past increase of fleet variable induces the present decrease of freight rate variable. 2) The impulse-response analysis shows that cargo shock increases the freight rate but fleet shock decreases the freight rate. 3) Among the three cargo, fleet, and freight rate shocks, the freight rate shock is overwhelmingly largest. 4) The comparison of adjR² reveals that the fleet variable is most explained by the endogenous variables, i.e., cargo, fleet, and freight rate in each of shipping markets. 5) The estimation of co-integrating vectors shows that the increase of cargo increases the freight rate but the increase of fleet decreases the freight rate. 6) The estimation of adjustment speed demonstrates that the past-period positive deviation from the long-run equilibrium freight rate induces the decrease of present freight rate.

• Environmental and Resource Economics Review
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• v.24 no.4
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• pp.657-677
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• 2015

We employ a 3 regime-threshold vector error correction models (TVECM) to investigate the nonlinear dynamic adjustments of three marker crude oil prices such as WTI (West Texas Intermediate), Brent and Dubai. Especially we deal with 3 combinations of oil prices including WTI-Brent, WTI-Dubai and Brent-Dubai in order to analyze the dynamic adjustments of the prices based on the effects of the price spreads among these crude oil prices. Our daily spot prices data run from 2001.1.3 to 2014.12.31. We found that each combination is cointegrated over the period. WTI had dropped significantly in 2010 which had affected the movements of the spreads. To accomodate this fact, we divide the period into two sub-periods: 2000.1.3-2009.12.31 and 2010.1.1-2014.12.31. It is found that each combination is cointegrated in both sub-periods. Moroever, in the first sub-period, all three oil prices are shown to follow nonlinear dynamic adjustments. In the second sub-period, however, TVECM is better than VECM(vector error correction model) for WTI-Dubai and Brent-Dubai while VECM performs better for WTI-Brent. The transaction costs are estimated to be reduced for the second sub-period for WTI-Dubai and Brent-Dubai compared to the first sub-period.

• International Area Studies Review
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• v.16 no.1
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• pp.3-27
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• 2012

This paper adopts recently developed panel unit root test that is cross-sectionally robust. Cointegration test is also used to find whether regional house prices are in line with gross regional domestic production (GRDP) in the long run in Korea during 1989-2009. Based on the panel VECM and the panel ARDL models, we examine causal relationships among the variables and estimate the long-run elasticity. We find evidence of cointegration and bidirectional causal relationships between regional house prices and GRDP. The results of long-run estimates, using both fixed effect and ARDL models, show that house prices positively and significantly influence on the GRDP and vice versa. Together with these results, the findings of ARDL-ECM imply that there exists a long-run equilibrium relationship between house prices and regional economic variables even if there is a possibility of short-run deviation from its long-run path.

• Culinary science and hospitality research
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• v.23 no.2
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• pp.126-134
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• 2017

The purpose of this paper was to examine the dynamics of the price discovery function between lean hog futures and spot markets using the vector error correction model (VECM). The researcher also investigated the existence of the long-run equilibrium relationship between the lean hog futures and spot markets. Daily time series data of lean hog futures and spot observed in the Korean market during the period from 5 Jan. 2011 to 28 Dec. 2012 were analyzed. To examine the price discovery, this study employed the Gonzalo and Granger's (1995) information ratio and Hasbrock's (1995) information ratio measurement method. The significant findings of the study are summarized as follows. First, lean hog futures and spot market are significantly correlated. Secondly, the lean hog future market plays a more dominant role in price discovery than the spot market. Finally, price discovery measures based on the VECM suggested that the lean hog future market plays a more dominant role in price discovery than the lean hog spot market. This is the important systematic empirical work to find the relationship between the lean hog future and spot market.

• Korean Management Science Review
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• v.25 no.3
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• pp.13-26
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• 2008

We investigate the effect of government and public sector R&D Investment at IT Industry on the amount of Production, export and nongovernment R&D Investment at IT Industry. We, firstly, examine the stationarity of each variable by the unit root t-test and perform the co-integration test for the pairs of variables. We use YECM(Vector Error Correction Model) according to the results of co-integration test for the examination of Granger-causality between variables. It is found that there exist an Granger-causality between public sector R&D Investment and nongovernment R&D investment and also between public sector R&D Investment and export. Secondly, we analyze the impulse response of government and public sector R&D Investment at IT Industry on the amount of production, export and nongovernment R&D investment at IT Industry based on VECM model. It is found that the response of the amount of production is highest at 3th period and is lowest at 8th period and that of export shows similar pattern.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.127-135
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• 2020

This study aims to measure the effects of real interest rate (RIR), gross domestic savings (GDS), and net exports (EN) shocks on Indonesia's economic growth (EG). The focus on Indonesia is unique due to the abundant resources available in the nation, but they are unsuccessful in boosting economic growth. This study applied a quantitative method to comprehensively analyze the correlation between variables by employing Vector Autoregression Model (VAR) combined with Vector Error Correction Model (VECM). Various procedures are preformed: Augmented Dickey-Fuller test (ADF), Optimum Lag Test, Johansen Cointegration Test, Granger Causality Test, as well as Impulse Response Function (IRF) and Error Variance Decomposition Analysis (FEVD). The data were collected from the World Bank and the Asian Development Bank from 1986 to 2017. The findings of the study indicated that economic growth responded positively to real interest rate shocks, which implies that when the real interest rate experiences a shock (increase), the economy will be inclined to growth. While, economic growth responded negatively to gross domestic savings and net export shocks. Policymakers are expected to consider several matters, particularly the economic conditions at the time of formulating policy, so that the prediction effectiveness of a policy can be appropriately assessed.

• Journal of Technology Innovation
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• v.31 no.2
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• pp.59-82
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• 2023

The purpose of this research is to conduct the empirical analysis of the short- and long-term causal relationship between public R&D investment, corporate R&D investment, and university R&D investment on economic growth in Korea. To this end, based on the time series data from 1976 to 2020, a causality test was conducted through the unit root test, cointegration test, and vector error correction model (VECM). As a result, it was found that there is a long-run equilibrium relationship between economic growth in Korea, public R&D investment, corporate R&D investment, and university R&D investment, in which a causal relationship exists in the long run. Also, while public R&D investment has a short-term effect on economic growth, corporate and university R&D investment does not have a short-term effect on economic growth. In addition, the results shows that there is a bidirectional causal relationship between economic growth and public R&D investment, corporate R&D investment and public R&D investment, and university R&D investment and public R&D investment in the short term. Through this research, it was empirically found that a highly mutual relationship exists between public R&D investment, corporate R&D investment, university R&D investment and economic growth. In order to increase the ripple effect of R&D investment on economic growth in the future, R&D investment between universities and corporations should be mutually promoted, and R&D investment by corporations should have a positive effect on public R&D investment so that public R&D investment can contribute to future economic growth.

• The Journal of Industrial Distribution & Business
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• v.10 no.1
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• pp.29-37
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• 2019

Purpose - We study the dynamic linkages of the economic policy uncertainty (EPU) in the US on the manufacturing stock market returns in Korea. In detail, we examine the casual link between EPU index in the US and the manufacturing stock indexes in Korea. Research design, data, and methodology - We measure mainly the distribution effect of the US EPU on the manufacturing stock market in Korea of 1990-2017 by the vector error correction model (VECM). Result - In result, we estimate the impact of the US EPU index has significantly a negative response to the manufacturing stock market in Korea such as non-metal stock index, chemical stock index, food stock index, textile·clothes stock index, automobile·shipbuilding stock index, machinery stock index, steel·metal stock index. Also the remaining variables such as electric·electronics stock index, S&P 500, and producer price index in Korea have a negative relationship with US EPU index. Conclusions - We find out that the relationship between EPU index of the US and the manufacturing stock market in Korea has the negative relationships. We determine the EPU of the US has the spillover effect on the industry stock markets in Korea.

• Environmental and Resource Economics Review
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• v.21 no.3
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• pp.493-517
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• 2012

This paper analyzes a price discovery process for gasoline among branded and independent stations in Korea using a vector error correction model (VECM) and directed acyclic graphs (DAG). Two data sets for daily prices of medium level gasoline running from April 15, 2008 to May 31, 2009 and from January 1, 2011 to December 31, 2011 are used for empirical analysis. Empirical results show that S-OIL has an exogeneity and played a important role in the flow of price information in the market in the first period. In the second period, SK energy played a key role in price discovery process in the market. The price of NH-OIL stations do not cause the price of any other stations, which implies that the entrance of new branded stations with lower gasoline price to market has no influence on gasoline prices of retail markets.