• Asia-Pacific Journal of Business
• /
• v.12 no.1
• /
• pp.209-223
• /
• 2021

Purpose - The purpose of this study was to investigate the relationship between Korea agricultural productions and Greenhouse Gas (GHG) emissions based on Environmental Kuznets Curve (EKC) hypothesis. Design/methodology/approach - This study utilized time series data of economic growth, greenhouse gas, agricultural productions, trade dependency, and energy usages. In order to econometric procedure of EKC hypothesis, this study utilized unit root test and cointegration test to check staionarity of each variable and also adopted Vector Error Correction Model (VECM) and Ordinary Least Square (OLS) to analyze the short and long run relationships. Findings - In the short run, greenhouse gas emissions resulting from economic growth show an inverse U-shape relationship, and an increase in agricultural production and energy consumption led to increase in greenhouse gas emission. In the long run, total GHG emissions and CO2 emissions show an N-shaped relationship with economic growth, and an increase in agricultural production has resulted in a decrease in total GHG and CO2 emissions. However, methane (CH4) and nitrous oxide (N2O) emissions showed an inverse U-shape relationship with economic growth, which indicated the environment and production process of agricultural production. Research implications or Originality - Korea agricultural production has different effects on the GHG emission sources, and in particular, methane (CH4) and nitrous oxide (N2O) emissions show to increase as the agricultural production expansions, so policy or technological development in related sector is required. Especially, in the context of the 2030 GHG reduction road-map, if GHG-related reduction technologies or policies are spread, national GHG emission reduction targets can be achieved and this is possible to predict the decline in production in the sector and damage to the related industries.

• International Area Studies Review
• /
• v.13 no.3
• /
• pp.759-780
• /
• 2009

The purpose of this paper is to analyse the effect of Korean FDI(1990-2008) in China by industries on exports and imports between two countries. We use time series regression, Vector Error Correction Model and Impulse Response Function as methodologies. Our findings through empirical tests are as follows. First Korean FDI in China increases Korean exports with China but shows a tendency to decrease due to the local content of China. Second Korean FDI in China increases Korean imports in SITC 8 with China. Finally Korean trade surplus caused by Korean FDI in China shrinks due to the decreasing of exports and increasing of imports in Korea. Korean FDI in China should be oriented host country's market oriented rather than production efficiency oriented because of unfriendly foreign investment environments in China.

• International Area Studies Review
• /
• v.16 no.3
• /
• pp.77-97
• /
• 2012

Estimated coefficients has serious problems including inconsistency, biasness, etc. because many researches about the effect of fiscal decentralization on a country's economic growth use the traditional OLS method. Researches use the data intactly so that so called "spurious regression" phenomenon exists. This causes fundamental fallacy. This research tries unit root test, cointegration test, and then estimates the United States' economic time series by using VECM. The analysis of the effect of the state level-fiscal decentralization on economic growth shows two long term-equilibriums. During short term-dynamic adjustment, fiscal decentralization and economic growth move the same or different directions. In case of prediction GDP increases steeply and then from 2015 gently; and fiscal decentralization index shows a general reduction trend and then decreases slowly. At local level it shows two long term-equilibriums. During short term-dynamic adjustment, fiscal decentralization and economic growth also move the same or different directions. Impulse response analysis shows the very negative effect of fiscal decentralization on economic growth.

• Journal of Distribution Science
• /
• v.16 no.12
• /
• pp.5-11
• /
• 2018

Purpose - We investigate the relationship between economic policy uncertainty (EPU) of the US and China and housing distribution economy in Korea using EPU indexes of two countries and the economic indicators in Korea. Research design, data, and methodology - We use the data such as the Korean housing price stability index (HPSI), housing purchase price index (HPPI), housing lease price index (HLPI), banking stock index (BSI), and consumer price index (CPI) with EPU indexes from January 1999 to December 2017. As an empirical methodology, we select the vector error correction model (VECM) due to the existence of cointegration. Result - As results of the impulse response function, the impact of the US EPU index has initially a negative response on the Korean HPSI, HPPI, and HLPI referring the housing distribution market including the economic variables, BSI, and CPI. Likewise, the impact of index in China has initially a negative response on economic indicators except the BSI in Korea. Conclusions - This study shows that the EPU index of the US has significantly negative relationships on all economic indicators in Korea. In this study, we reveal EPU of the US and China has dynamic impact on housing distribution economy returns in Korea.

• The Journal of Asian Finance, Economics and Business
• /
• v.5 no.2
• /
• pp.43-51
• /
• 2018

We study the impact of economic policy uncertainty (EPU) of Asian four countries such as Korea, Japan, Hong Kong, and China on housing market returns in Korea. Also, we document the relationship between the EPU index of those four countries and the housing market including macroeconomic indicators in Korea. The EPU index of those four countries has significantly a negative effect on the housing purchase price index, housing lease price index in Korea. The EPU index in Korea and Japan has significantly a negative effect on the CPI. The EPU index in only Japan has significantly a negative effect on the PPI. The EPU index in Hong Kong and Korea has significantly a negative effect but the EPU index in China significantly has a positive effect on the stock price index in construction industry. The EPU index in only Korea has significantly a negative effect the stock price index in banking industry. This study shows the EPU index of the Korea has the negative relationships on the housing market economy rather than other countries by VECM. And this study has an important evidence of the spillover of several macroeconomic indicators in Korea for the EPU index of the Asian four countries.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.4
• /
• pp.163-171
• /
• 2020

The study aims to examine the effects of inward every presence of foreign investment, import, and real exchange rate shocks on export performance in Vietnam. This study employs a time-series sample dataset in the period of 2009 - 2018. All data are collected from the General Statistics Office of Ministry of Planning and Investment in Vietnam, World Development Indicator and Ministry of Finance, State Bank of Vietnam. This study employs the Augmented Dickey-Fuller test and the vector error correction model with the analysis of cointegration. The results demonstrate that a higher value of import significantly accelerates export performance in the short run, but insignificantly generates in the long run. When the volume of registered foreign investment goes up, the export performance will predominantly decrease in the both short run and long run. Historically, countries worldwide are more likely to devaluate their currencies in order to support export performance. According to the study, the exchange rate volatility has an effect on the external trade in the long run but no effect in the short run. Finally, Vietnam's export performance converges on its long-run equilibrium by roughly 6.3% with the speed adjustment via a combination of import, every presence of foreign investment, and real exchange rate fluctuations.

• Journal of Distribution Science
• /
• v.15 no.3
• /
• pp.17-25
• /
• 2017

Purpose - The study is to examine the impact of the US Purchasing Managers' Index (PMI) on Korea and the US industrial economy including the distribution industry. We analyze its effect on the industrial economy centered on the distribution industry using economy indices in Korea and the US. Research design, data, and methodology - The variables are used to analyze the dynamic relationship which occurs among the US PMI, the industrial production index, producer price index, unemployment rate, and manufacturing Inventories Index in Korea and the US from January 1990 to July 2016 using Vector Error Correction Model. Results - As a main result, the impact of the US PMI on all the economy indices both Korea and the US has the same cyclical movement. The US PMI is positively related to the producer price and the industrial production index of Korea and the US, while it is negatively related to unemployment rate, and the manufacturing inventories index in Korea and the US. Conclusions - The US PMI as an advanced index has a power to predict the economies on Korea and the US. In the end, we find that the US PMI has a great impact on Korea and the US industrial economy.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.10
• /
• pp.451-459
• /
• 2020

This study aims to examine the causality between production input and the price of rice in East Java, Indonesia. This study applied a quantitative method to understand in a comprehensive way the correlation between variables. The data used for this study were collected from several sources, including East Java Agriculture Office, Siskaperbapo.com, and Statistics Indonesia (BPS) of East Java. This research was carried out over five years, starting from 2014 to 2018. Furthermore, the data were analyzed using the Vector Error Correction Model (VECM) by employing E-Views (version 7). The findings of this study indicated that, in the long run, the population, rice production, and changes in people's income have a positive effect on price stability, but are inversely proportional if seen in the short term. In comparison, in the long run, farmer exchange rates variable has a negative impact on price stability, and inversely proportional in the short term, which has a positive effect. There are different implications when the people's income increases and the rice price declines; these have great potential to alleviate poverty in East Java, Indonesia. This is due to the fact that the price stability also concerns the welfare of the community.

• The Journal of Asian Finance, Economics and Business
• /
• v.6 no.2
• /
• pp.269-275
• /
• 2019

This study intended to examine the relationship between inflation and unemployment rate in Indonesia during 1987 to 2018 period. The study applied a quantitative method using Vector Error Correction Model (VECM) in order to comprehensively understand the causality between inflation and unemployment rates. The data were collected from various main sources including the World Bank, Central Bank of Indonesia, and Central Bureau of Statistics (BPS). The findings showed that inflation has a one-way relationship toward unemployment in Indonesia and it occurs at the third lag. Impulse Response Function (IRF), shows that the inflation rate are fluctuating in response to the shock of unemployment. The unemployment rate responses to shocks from inflation initially increased until it is eventually diminished. It shows that the shocks caused by the impact of inflation were only in the short term. Further, inflation in the three previous lags will have consequences for the unemployment rate in the year. Lastly, both in the long run and short run, unemployment did not affect inflation rates. These findings suggest that high inflation in Indonesia is determined the rising price of basic commodities and fuel. In addition, most companies in Indonesia applying capital intensive so that employment growth in Indonesia is small.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.5
• /
• pp.543-549
• /
• 2021

The stock market plays a crucial role in the growth of industry and trade, which eventually affects the economy. This paper studies the determinants of stock market development in Jordan using yearly time-series data (1978-2019). The autoregressive distributed lag approach is applied to examine co-integration, while the vector error correction model is employed to estimate (long-run and short-run) causal relationships. The results show that macroeconomic determinants such as gross domestic product, gross domestic savings, investment rate, credit to the private sector, broadest money supply, stock market liquidity, and inflation rate are important determinants of stock market development. These findings provide vital implications for policymakers in developed and emerging stock markets. First, economic development plays an imperative role in stock market development. Second, developing the banking sector is mandatory because it can significantly promote stock market development. Third, domestic investment is a significant determinant of stock market development, especially in emerging countries. However, it is vital to launch policies that lead to encourage investment and promote stock market development, and this could be done through (1) encouraging competition, (2) improving the institutional framework, and (3) removing trade blocks by establishing a mutual connection between foreign private investment entities and government authorities.