• Journal of Korea Trade
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• v.24 no.8
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• pp.133-152
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• 2020

Purpose - The purpose of this study is to analyze the determinants of commodity trade in Korea and China and to examine the implications of China's GVC shift from export to domestic market on its impact on Korea's trade. Design/methodology - This study selected 30 major trading partner countries. The dependent variable is the trade volume, and the independent variables are general economic factors such as gross domestic product (GDP), GDP per capita, distance, and FTA. Findings - The trade pattern of Korea's commodities shows that GDP has a positive relationship with trade, import, and export. Distance has a significant negative relationship with total trade, import, and export. FTA is significant for import but it is not significant for total trade and export. The trade pattern of China's commodities shows that GDP has a significant positive relationship with total trade, import, and export. Distance has a negative relationship with trade, import, and export. GDP per capita is not significant for total trade and import, but it is significant for export. FTA is significant for total trade and export, but it is not significant for import. Originality/value - Existing papers were studied mainly in certain industrial sectors such as agriculture, manufacturing, automobile industry and steel industry. This paper attempts to collects vast amounts of data about the 30 countries of Korea and China respectively and analyzes by Random Effect Model dividing the goods (0 to 9) in units of STIC (Rev. 4). The major contribution is that the decision factors affecting commodity trade can be analyzed in SITC units (0-9) to obtain analysis results that are subdivided by product group and organized by product.

• Journal of Korea Trade
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• v.27 no.2
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• pp.47-60
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• 2023

Purpose - This paper assesses the trade potential and efficiency of Korea and China in the aquatic products trade. Trade efficiency and potential are the main factors that affect the growth of a country's trade. In this study, a time-varying stochastic frontier trade gravity model was constructed to analyze the trade potential and efficiency between Korea and China. By integrating the results of trade theory and empirical analysis, measures and suggestions were proposed to encourage the release of trade potential of fish exports between Korea and China. Design/methodology - In this paper, GDP per capita instead of economic size was chosen as an explanatory variable, and population size and relative distance were selected as explanatory variables to measure trade potential. For trade non-efficiency terms, regional organizations, political factors, and economic factors were mainly considered, and variables such as free trade agreements, political stability, regulatory quality, government efficiency, currency freedom, investment freedom, financial freedom, and trade freedom were selected. Panel data for South Korea and 14 aquatic products trading partners (including China) from 2002 to 2020 were used in the empirical analysis. Findings - In the past 19 years, South Korea's export trade potential of aquatic products to China has never been lower than 70%. It was above 90% from 2006 to 2018, and has been at a high level for a long time. This shows that China's aquatic product market has large potential for development. Originality/value - This study examines the effectiveness and potential of South Korea's exports of aquatic items to China in a methodical and comprehensive empirical manner. The evaluation of the export trade potential of South Korea's aquatic goods to China is more precise when the effects of regional organization, political, and economic variables are taken into account in the trade non-efficiency term of the stochastic frontier gravity model. At the same time, we propose to increase the scale of South Korea's aquatic products trade from the perspective of China's demand. This issue of trade studies is underexplored both empirically and in theory, although the issue has long been important to Korean and world trade.

• The Korean Journal of Applied Statistics
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• v.23 no.1
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• pp.63-71
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• 2010

Business entrepreneurs reflect their views of domestic and foreign economic activities on their operation for the growth of their business. The decision, forecasting, and planning based on their economic sentiment affect business operation such as production, investment, and hiring and consequently affect condition of national economy. Business survey index(BSI) is compiled to get the information of business entrepreneurs' economic sentiment for the analysis of business condition. BSI has been used as an important variable in the short-term forecasting models for business cycle analysis, especially during the the period of extreme business fluctuations. Recent financial crisis has arised extreme business fluctuations similar to those caused by currency crisis at the end of 1997, and brought back the importance of BSI as a variable for the economic forecasting. In this paper, the meaning of BSI as an economic sentiment index is reviewed and a GUIDE regression tree is constructed to find out the factors which affect on BSI. The result shows that the variables related to the stability of financial market such as kospi index(Korea composite stock price index) and exchange rate as well as manufacturing operation ratio and consumer goods sales are main factors which affect business entrepreneurs' economic sentiment.

• Journal of Energy Engineering
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• v.22 no.4
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• pp.370-375
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• 2013

This paper attempts to estimate the city gas demand function in Korea over the period 1981-2012. As the city gas demand function provides us information on the pattern of consumer's city gas consumption, it can be usefully utilized in predicting the impact of policy variables such as city gas price and forecasting the demand for city gas. We apply lagged dependent variable model and ordinary least square method as a robust approach to estimating the parameters of the city gas demand function. The results show that short-run price and income elasticities of the city gas demand are estimated to be -0.522 and 0.874, respectively. They are statistically significant at the 1% level. The short-run price and income elasticities portray that demand for city gas is price- and income-inelastic. This implies that the city gas is indispensable goods to human-being's life, thus the city gas demand would not be promptly adjusted to responding to price and/or income change. However, long-run price and income elasticities reveal that the demand for city gas is price- and income-elastic in the long-run.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.4
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• pp.534-549
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• 2012

This study analyzed the effects of housing wealth on the balance accounts of elderly households with an age of over 60 facing the asset decumulation period, capitalizing upon an ordered logit model for the 2011 household finance survey data. Out of some variables representing personal and social characteristics, the age and waged worker variables had a positive effect, but the number of household, low education level, living in the apartment and capital region variables negatively affected the balance accounts of elderly households. Some variables reflecting economic wealth and financial strategies such as the attitude of risk-taking, ordinary income and the ratio of financial assets had a positive impact, but other variables such as DSR did a negative one on the balance accounts of the elderly households. The ownership of housing wealth variable positively, but the ratio of housing assets variable negatively affected the balance accounts of the elderly households, which could be derived from the duality of housing as both consumption goods and assets. However, the ownership of other real estates and the ratio of them in the total assets variables had a negative impact on the balance accounts of the elderly households. Furthermore, since the financial asset-debt ratio worsened the balance accounts of the elderly households with both housing and other real estates, it is implied that the purchase of real estates with excessive bank loans could make them dangerous.

• Journal of the Korean Institute of Landscape Architecture
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• v.41 no.1
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• pp.51-59
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• 2013

This study was conducted to compare the sizes of effective values, which users recognize, according to the kinds of physical and psychological services provided by an arboretum, by estimating them in monetary values. As an analysis tool for this purpose, the CE(Choice Experiments) method, which is able to estimate effective value's size depending on each variable, was employed. For drawing up profiles for estimation of the values of individual services, 25 profiles were extracted using the orthogonal design of the SPSS statistical package, and questions of 75 pairs were created not to make each of the profiles overlapped. Then, each user was given three questions at five sets each and 3,510 data were used for the analysis. As the result, in relation to the attribute, 'The kinds of trees should be diversified 50% more than now.', firstly, users showed the biggest willingness to pay, based on the present level, and expressed intentions to pay 7,956 won, additionally. Secondly, the value of the path design that was unique than the present road design was estimated in 6,025 won, and when individual attendants guided visitors in the arboretum, they expressed intentions to pay nearly three times more expenses than when they were guided as a group. These results show that users in the Gyeongnam Arboretum recognized the highest effective values towards the collection and display of trees that are arboretum's original functions, and it was followed by the unique road design to observe a variety of dense trees well. This research could be useful in comparing or measuring particular effective values of users that central operators of arboretums want to know. Moreover, it would be suggested as an advanced research for providing basic data about value estimation of individual environmental goods not only in arboretums, but also in other fields.

• Journal of the Korean Society of Costume
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• v.64 no.2
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• pp.35-49
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• 2014

In cases of fashion businesses operating by consignment, base estimate on quantity of sales is the most essential part of merchandising. This study classified factors influential to sales into factors with systematic influence and factors with unsystematic influence. In order to find out influence of each factor on sales, non-linear regression was used with SPSS package on the basis of actual data on sales for 5 years for sport shoes brand. Major findings of this study are as follows. First, price level had significant negative(-) influence on sales. Second, price expectation effects had significant negative(-) influence on sales. Third, competitor's price effect showed significant negative(-) value. Fourth, day-of-the-week effect showed significant positive(+) effect. The theoretical marketing implications of this study are as follows. First, study on price leads to expansion of the researches from apparels to sport shoes. Field of study on price was enlarged through expansion of variable of study from price level and price expectation effect to promotion, day-of-the-week effect and rainfall effect. Second, quantitative scale of day-of-the-week effect was found and it could be confirmed that there was seasonal differences with day-of-the-week effect. Implications of above findings on marketing managers are as follows. First, it was found that an increase in competitiveness of brand power and a decline in absolute value of competitor's price effect can be realized when new product groups are developed to meet the unsatisfied needs in the market. Second, it was possible to find out the parameters scales of the price response function, making it possible to estimate sales for the next season, and in turn realize increase in rate of sales and profit rate. This research is based on the dynamic price response function, which is rare to find in the apparel business and it academic significance due to its expanding response model which was focused on price in conventional researches to non-systematic variables.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.6
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• pp.656-662
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• 2016

We have provided a variety of domestic construction technology related full-text services through the Construction Technology Digital Library system since 2001. CODIL is a system that services the database related to construction technology data. On the other hand, there is growing demand for DB every year, but the required budget is shrinking. Therefore, this study investigated the satisfaction to effectively service the construction technique-related full-text with a limited budget. The monetary value of full-text to express satisfaction with the quantified value was estimated using the Tobit model. The Tobit model is used as a contingent valuation method to estimate the value of non-market goods. This model is the limited dependent variable regression model to observations by censoring the limit of the left side or right side so that a biased outlier is not reflected in the willingness to pay. A survey was conducted by sampling 312 respondents. The mean, median, truncating the willingness of payment were calculated for the six types of the full-text services using the Tobit model. The statistically significant variables affecting the willingness to pay for the full-text services were identified. The mean value of per the full-text service was estimated to be 46,530 won. The significance of this study was to use the Tobit model to estimate the value of the construction technology-related full-text services for the first time in Korea.

• Journal of Environmental Policy
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• v.14 no.2
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• pp.49-72
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• 2015

Forests in the upstream contributed to improve the quality of water resources for the residents downstream. However, upon structural examination of how the Han River Watershed Management Fund was spent, it became apparent that the fund was not spent toward forest management in the upstream. An additional budget must be allocated if the Watershed Management Committee is to contribute to the management of the upstream forests with such awareness. Therefore, the aim of the study was to assess the willingness to pay and to calculate of budget for forest management in the upstream for water quality improvement. Three hundred surveys on watershed beneficiaries were conducted using biased sampling method. The result was analyzed with conditional logit model and mixed logit model. Forest management, a target variable, was found to have statistical significance. Based on this result, the size of the expected budget was estimated to be minimum 20,526 million won to maximum 20,928 million won.

• Journal of Distribution Science
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• v.11 no.2
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• pp.23-33
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• 2013

Purpose - Numerous studies have tried to assess the role of a warranty as an explanatory instrument for product quality. While one study argued that manufacturers signal their superior quality to consumers by extending the duration of a warranty, quality is not necessarily related to warranty and a warranty for a short duration is a sign of high product quality. However, there are limitations to measuring product quality in terms of a single variable such as a warranty. Some other studies have evaluated the influence of brand power or value and price on the supposed quality of a product while the influence of warranty was found to be insignificant. Research design, data, methodology - The study analyzes the influence of brand power and the country of origin effect on consumers' perception of product quality in line with warranty and establishes a priority strategy. Especially, consumer experience has a significant influence on state of the art technology products like applied home electronics as these goods are generally quite expensive and consumers expend significant energy in purchasing them, so the associated warranty and brand can have a critical role in the decision making process. The price of the product was excluded in this discussion as it continually varies with the market share of the product. Results - The results of the analysis are as follows: First, each of the factors such as the standard of the warranty, brand power, and country of origin effect influences the degree of satisfaction of an individual. Second, the factors brand power and quality of the warranty interact both complementarily and synergistically at a time, depending on the brand power. As brand power is more significant, the degree of satisfaction is greater in case of products with low quality warranty compared to those with high quality warranty. Third, the brand power and country of origin effect present a complementary interaction. Fourth, the country of origin effect and quality of a warranty interact synergistically. Conclusions - Thus, the higher the quality of warranty, greater is the increment in the degree of satisfaction. The comprehensive study on the effect of the country of origin on the purchase decision process and the degree of satisfaction compared to the other elements shows that in case of Japanese and Korean markets the brand power of a company is desirable in sustaining the quality of warranty to the industrial average. Also, there is no significant improvement in the perceived quality of the product when the quality of the warranty is lowered. Therefore, the warranty effect diminishes when the value of the brand is known, while it perishes when both the brand power and the country of origin effect are strong enough.