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Value of Information Technology Outsourcing: An Empirical Analysis of Korean Industries (IT 아웃소싱의 가치에 관한 연구: 한국 산업에 대한 실증분석)

  • Han, Kun-Soo;Lee, Kang-Bae
    • Asia pacific journal of information systems
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    • v.20 no.3
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    • pp.115-137
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    • 2010
  • Information technology (IT) outsourcing, the use of a third-party vendor to provide IT services, started in the late 1980s and early 1990s in Korea, and has increased rapidly since 2000. Recently, firms have increased their efforts to capture greater value from IT outsourcing. To date, there have been a large number of studies on IT outsourcing. Most prior studies on IT outsourcing have focused on outsourcing practices and decisions, and little attention has been paid to objectively measuring the value of IT outsourcing. In addition, studies that examined the performance of IT outsourcing have mainly relied on anecdotal evidence or practitioners' perceptions. Our study examines the contribution of IT outsourcing to economic growth in Korean industries over the 1990 to 2007 period, using a production function framework and a panel data set for 54 industries constructed from input-output tables, fixed-capital formation tables, and employment tables. Based on the framework and estimation procedures that Han, Kauffman and Nault (2010) used to examine the economic impact of IT outsourcing in U.S. industries, we evaluate the impact of IT outsourcing on output and productivity in Korean industries. Because IT outsourcing started to grow at a significantly more rapid pace in 2000, we compare the impact of IT outsourcing in pre- and post-2000 periods. Our industry-level panel data cover a large proportion of Korean economy-54 out of 58 Korean industries. This allows us greater opportunity to assess the impacts of IT outsourcing on objective performance measures, such as output and productivity. Using IT outsourcing and IT capital as our primary independent variables, we employ an extended Cobb-Douglas production function in which both variables are treated as factor inputs. We also derive and estimate a labor productivity equation to assess the impact of our IT variables on labor productivity. We use data from seven years (1990, 1993, 2000, 2003, 2005, 2006, and 2007) for which both input-output tables and fixed-capital formation tables are available. Combining the input-output tables and fixed-capital formation tables resulted in 54 industries. IT outsourcing is measured as the value of computer-related services purchased by each industry in a given year. All the variables have been converted to 2000 Korean Won using GDP deflators. To calculate labor hours, we use the average work hours for each sector provided by the OECD. To effectively control for heteroskedasticity and autocorrelation present in our dataset, we use the feasible generalized least squares (FGLS) procedures. Because the AR1 process may be industry-specific (i.e., panel-specific), we consider both common AR1 and panel-specific AR1 (PSAR1) processes in our estimations. We also include year dummies to control for year-specific effects common across industries, and sector dummies (as defined in the GDP deflator) to control for time-invariant sector-specific effects. Based on the full sample of 378 observations, we find that a 1% increase in IT outsourcing is associated with a 0.012~0.014% increase in gross output and a 1% increase in IT capital is associated with a 0.024~0.027% increase in gross output. To compare the contribution of IT outsourcing relative to that of IT capital, we examined gross marginal product (GMP). The average GMP of IT outsourcing was 6.423, which is substantially greater than that of IT capital at 2.093. This indicates that on average if an industry invests KRW 1 millon, it can increase its output by KRW 6.4 million. In terms of the contribution to labor productivity, we find that a 1% increase in IT outsourcing is associated with a 0.009~0.01% increase in labor productivity while a 1% increase in IT capital is associated with a 0.024~0.025% increase in labor productivity. Overall, our results indicate that IT outsourcing has made positive and economically meaningful contributions to output and productivity in Korean industries over the 1990 to 2007 period. The average GMP of IT outsourcing we report about Korean industries is 1.44 times greater than that in U.S. industries reported in Han et al. (2010). Further, we find that the contribution of IT outsourcing has been significantly greater in the 2000~2007 period during which the growth of IT outsourcing accelerated. Our study provides implication for policymakers and managers. First, our results suggest that Korean industries can capture further benefits by increasing investments in IT outsourcing. Second, our analyses and results provide a basis for managers to assess the impact of investments in IT outsourcing and IT capital in an objective and quantitative manner. Building on our study, future research should examine the impact of IT outsourcing at a more detailed industry level and the firm level.

Fast Full Search Block Matching Algorithm Using The Search Region Subsampling and The Difference of Adjacent Pixels (탐색 영역 부표본화 및 이웃 화소간의 차를 이용한 고속 전역 탐색 블록 정합 알고리듬)

  • Cheong, Won-Sik;Lee, Bub-Ki;Lee, Kyeong-Hwan;Choi, Jung-Hyun;Kim, Kyeong-Kyu;Kim, Duk-Gyoo;Lee, Kuhn-Il
    • Journal of the Korean Institute of Telematics and Electronics S
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    • v.36S no.11
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    • pp.102-111
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    • 1999
  • In this paper, we propose a fast full search block matching algorithm using the search region subsampling and the difference of adjacent pixels in current block. In the proposed algorithm, we calculate the lower bound of mean absolute difference (MAD) at each search point using the MAD value of neighbor search point and the difference of adjacent pixels in current block. After that, we perform block matching process only at the search points that need block matching process using the lower bound of MAD at each search point. To calculate the lower bound of MAD at each search point, we need the MAD value of neighbor search point. Therefore, the search points are subsampled at the factor of 4 and the MAD value at the subsampled search points are calculated by the block matching process. And then, the lower bound of MAD at the rest search points are calculated using the MAD value of the neighbor subsampled search point and the difference of adjacent pixels in current block. Finally, we discard the search points that have the lower bound of MAD value exceed the reference MAD which is the minimum MAD value of the MAD values at the subsampled search points and we perform the block matching process only at the search points that need block matching process. By doing so, we can reduce the computation complexity drastically while the motion compensated error performance is kept the same as that of full search block matching algorithm (FSBMA). The experimental results show that the proposed method has a much lower computational complexity than that of FSBMA while the motion compensated error performance of the proposed method is kept same as that of FSBMA.

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Neural Bases of Empathy in Competitive vs. non-Competitive situation (경쟁과 비경쟁 상황에서 공감의 신경학적 기제)

  • Hwang, Su-Young;Yoon, Mi-Sun
    • Korean Journal of Cognitive Science
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    • v.27 no.3
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    • pp.441-467
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    • 2016
  • This fMRI study is aim to investigate effects of competitive environment in cognitive empathic process in human brain. Empathy is known as a crucial factor for human's adaptive behavior in aspects of social cognition and it is almost automatic process, on the other hand competitive situation is psychologically devastated environment to win someone for getting rewards. We hypnotized that reading and understanding of other person's mind are a specific characteristic related to survival evolutionarily, however competition would have an effect on the empathic cognitive process because of mechanisms of competition. To manipulate the competitive atmosphere, one researcher took a role of competitor against participants and they were instructed to get monetary rewards when their performance was better than a competitor. 21 participants(9 males and 12 females) performed to judge the emotional valence of the empathic task consisted of illustrated images with various situation could be experienced in real world as on $1^{st}$ person perspective in both competitive and non-competitive condition, and did same performance with objects stimulus in control condition. In order to examine the competition effects on empathic process,, hemodynamic response were obtained during fMRI session and the imaging data were analyzed to identify brain regions where responses to each condition across the two consecutive runs. Participants' reaction time in competitive condition was faster statistically significant than non-competitive one. Activation for competitive condition increased in the following areas: ACC, mPFC, SMG, thalamus extended caudate and Nacc, parahippocampal gyrus, and for non-competitive condition increased paracingulate gyrus, temporal pole, vmPFC, superior occipital gyrus. As a result of regression analysis using empathic scores as covariance, the rSMG, IFG, fusiform gyrus, thalamus, putamen were correlated with higher empathic levels, and TPJ were correlated with lower empathic scores. We suggest that these observations could mean competitive environment have an effect on neural base of cognitive empathic process.

The Validity and Reliability of 'Computerized Neurocognitive Function Test' in the Elementary School Child (학령기 정상아동에서 '전산화 신경인지기능검사'의 타당도 및 신뢰도 분석)

  • Lee, Jong-Bum;Kim, Jin-Sung;Seo, Wan-Seok;Shin, Hyoun-Jin;Bai, Dai-Seg;Lee, Hye-Lin
    • Korean Journal of Psychosomatic Medicine
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    • v.11 no.2
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    • pp.97-117
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    • 2003
  • Objective: This study is to examine the validity and reliability of Computerized Neurocognitive Function Test among normal children in elementary school. Methods: K-ABC, K-PIC, and Computerized Neurocognitive Function Test were performed to the 120 body of normal children(10 of each male and female) from June, 2002 to January, 2003. Those children had over the average of intelligence and passed the rule out criteria. To verify test-retest reliability for those 30 children who were randomly selected, Computerized Neurocognitive Function Test was carried out again 4 weeks later. Results: As a results of correlation analysis for validity test, four of continues performance tests matched with those on adults. In the memory tests, results presented the same as previous research with a difference between forward test and backward test in short-term memory. In higher cognitive function tests, tests were consist of those with different purpose respectively. After performing factor analysis on 43 variables out of 12 tests, 10 factors were raised and the total percent of variance was 75.5%. The reasons were such as: 'sustained attention, information processing speed, vigilance, verbal learning, allocation of attention and concept formation, flexibility, concept formation, visual learning, short-term memory, and selective attention' in order. In correlation with K-ABC to prepare explanatory criteria, selectively significant correlation(p<.0.5-001) was found in subscale of K-ABC. In the test-retest reliability test, the results reflecting practice effect were found and prominent especially in higher cognitive function tests. However, split-half reliability(r=0.548-0.7726, p<.05) and internal consistency(0.628-0.878, p<.05) of each examined group were significantly high. Conclusion: The performance of Computerized Neurocognitive Function Test in normal children represented differ developmental character than that in adult. And basal information for preparing the explanatory criteria could be acquired by searching for the relation with standardized intelligence test which contains neuropsycological background.

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육계사료에 CLA와 다른 유지의 첨가.급여가 생산능력에 미치는 영향비교

  • 류명선;김은성;김상호;최형송;정문웅;류경선
    • Proceedings of the Korea Society of Poultry Science Conference
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    • 2001.11a
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    • pp.89-91
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    • 2001
  • Two experiments were conducted to compare the dietary supplemental influence of conjugated linoleic acid(CLA), soybean oil(SBO) and commercial tallow(U) on performance and physiological related factor of broiler chicks. Diets contained CP 21.5, 19% and ME 3,100, 3,100kcal/kg for starting and finishing period. Each three levels(1.0, 2.0, 3.0%) of CLA, SBO, CT were supplemented to basal diets. Five hundred forty and three hundred sixty chicks were applied to 3${\times}$3, 2${\times}$3 factorial design with four replicates in Expt 1 and 2. Weight gain, food intake and feed conversion were weekly examined. Blood cholesterol, ND antibody titer, blood components and were measured at the end of experiment. Metabolizable energy(ME) were measured through the metabolic feeding trial in each oil. ME was 8,542, 9,179, 8,133 kcal/kg in CLA, SBO and CT, respectively. In Expt 1, weight gain of chicks fed 1% dietary oil was significantly lower than other treatments(P<0.05). Feed conversion was significantly improved in SBO supplemental groups of all treatments(P<0.05). In Expt 2, CLA supplements increased weight gain significantly for finishing period(P<0.05) compared to that of other treatments. Feed conversion of chicks fed 2% dietary oil was significantly improved relative that of 3%(P<0.05). HDL of 3% dietary supplemental oil treatments was significantly higher for finishing and starting period in Expt 1 and 2, respectively than other treatments(P<0.05). There were no significantly different M Antibody titer in Expt 1, but showed significance between dietary supplemental oil in Expt 2(P<0.05). CLA content of breast meat was 12.23, 18.74, 25.67 mg/g in 1, 2, and 3% CLA treatments and significantly different between them(P<0.05). As the results of these experiments, feeding CLA tended to improve the weight gain compared In that of other dietary oil, but was not increase the ND antibody titer of broiler chciks. CLA content of breast meat also showed the significance at different level of dietary supplement.

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The Effect of Information Service Quality on Customer Loyalty: A Customer Relationship Management Perspective (정보서비스품질이 고객로열티에 미치는 영향에 관한 연구: 고객관계관리 관점)

  • Kim, Hyung-Su;Gim, Seung-Ha;Kim, Young-Gul
    • Asia pacific journal of information systems
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    • v.18 no.1
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    • pp.1-23
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    • 2008
  • As managing customer relationship gets more important, companies are strengthening information service using multi-channels to their customers as a part of their customer relationship management (CRM) initiatives. It means companies are now accepting such information services not as simple information -delivering tools, but as strategic initiatives for acquiring and maintaining customer loyalty. In this paper, we attempt to validate whether or not such various information services would impact on organizational performance in terms of CRM strategy. More specifically, our research objective is to answer the next three questions: first, how to construct the instruments to measure not information quality but information service quality?; second, which attributes of information service quality can influence corporate image and customer loyalty?; finally, does each information service type have unique characteristics compared with others in terms of influencing corporate image and customer loyalty? With respect to providing answers to those questions, the previous studies had been limited in that those studies failed to consider the variety of types of information service or restricted the quality of information service to information quality. An appropriate research model answering the above questions should consider the fact that most companies are utilizing multi channels for their information services, and include the recent strategic information service such as customer online community. Moreover, since corporate information service could be regarded as a type of products or services delivered to customer, it is necessary to adopt the criteria for assessing customer's perceived value when to measure the quality of information service. Therefore, considering both multi-channels and multi-traits may enable us to tell the detailed causal routes showing which quality attributes of which information service would affect corporate image and customer loyalty. As information service channels, we include not only homepage and DM (direct mail), which are the most frequently applied information service channels, but also online community, which is getting more strategic importance in recent years. With respect to information service quality, we abstract information quality, convenience of information service, and timeliness of information service through a wide range of relevant literature reviews. As our dependant variables, we consider corporate image and customer loyalty that both of them are the critical determinants of organizational performance, and also attempt to grasp the relationship between the two constructs. We conducted a huge online survey at the homepage of one of representative dairy companies in Korea, and gathered 367 valid samples from 407 customers. The reliability and validity of our measurements were tested by using Cronbach's alpha coefficient and principal factor analysis respectively, and seven hypotheses were tested through performing correlation test and multiple regression analysis. The results from data analysis demonstrated that timeliness and convenience of homepage have positive effects on both corporate image and customer loyalty. In terms of DM, its' information quality was represented to influence both corporate image and customer loyalty, but we found its' convenience have a positive effect only on corporate image. With respect to online community, we found its timeliness contribute significantly both to corporate image and customer loyalty. Finally, as we expected, corporate image was revealed to provide a great influence to customer loyalty. This paper provides several academic and practical implications. Firstly, we think our research reinforces CRM literatures by developing the instruments for measuring information service quality. The previous relevant studies have mainly depended on the measurements of information quality or service quality which were developed independently. Secondly, the fact that we conducted our research in a real situation may enable academics and practitioners to understand the effects of information services more clearly. Finally, since our study involved three different types of information service which are most frequently applied in recent years, the results from our study might provide operational guidelines to the companies that are delivering their customers information by multi-channel. In other words, since we found that, in terms of customer loyalty, the key areas would be different from each other according to the types of information services, our analysis would help to make decisions such as selecting strengthening points or allocating resources by information service channels.

Growth Performance and Carcass Characteristics of Two Different Broiler Strains by Different Levels of Metabolizable Energy (사료 내 대사 에너지 수준 차이가 계통이 다른 육계의 성장과 도체 특성에 미치는 영향)

  • Kim, Jong-Seol;Kwon, Jung-Taek;Kim, Je-Hun;Oh, Sung-Taek;Lee, Bo-Keun;Zheng, Lan;Jung, Moon-Sung;An, Byoung-Ki;Kang, Chang-Won
    • Korean Journal of Poultry Science
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    • v.39 no.3
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    • pp.195-205
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    • 2012
  • The objective of this study was to evaluate the effects of different levels of dietary ME on growth performance and carcass characteristics in two different strains of broiler chicken. A total of one thousand, 1-day-old A strain and R strain male chicks were randomly assigned into 8 treatments in a $2{\times}4$ factorial arrangement. They were fed iso-nitrogenic (CP 21%) crumbled diets formulated to contain metabolizable energy (ME) 2,950 to 3,250 kcal/kg in increment of 100 kcal/kg in the starter phase (1 to 21d) and iso-nitrogenic (CP 19%) pelleted diets containing same ME levels as in the finishing phase (22 to 38d). The body weight (BW) gain of chicks fed the lower ME diets (2,950 or 3,050 kcal/kg) were higher than those of the higher ME groups. The dietary energy level showed significant effects on feed intake and feed conversion rate (FCR) from 1 to 38 days of age (p<0.05). With the increment of dietary energy, feed intake tended to be reduced, whereas FCR was improved in the two strains of broiler chickens. The lowest FCR was observed at 3,250 kcal/kg diet groups in both of the two strains from 1 to 38 days of age. Feed intake and BW gain during 38 days were significantly affected by the strain factor. Increasing dietary energy up to 3,250 kcal/kg had no effect on the relative weights of breast meat and abdominal fat. The dietary energy and strains showed significant effects on the dressing percentage. There were no significant differences in various blood profiles except for GPT activity.

Effects of Supplementary Copper Sources (Cu Sulfate, Cu-Methionine, Cu-Soy Proteinate) on the Performance Broiler Chickens (구리 공급원들(Cu Sulfate, Cu-Methionine, Cu-Soy Proteinate)의 첨가가 육계의 생산성에 미치는 영향)

  • Lee, Mun-Ku;Kim, Chan-Ho;Shin, Dong-Hun;Jung, Byoung-Yun;Paik, In-Kee
    • Korean Journal of Poultry Science
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    • v.38 no.2
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    • pp.121-128
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    • 2011
  • This study was conducted to investigate the effects of dietary supplementation of Cu-sulfate, Cu-methionine chelate (Cu-Met) and Cu-soy proteinate (Cu-SP) on the performance, blood parameters and mineral contents of muscle. It was conducted with a total of 1,000 one d old broilers chickens (Ross$^{(R)}$) which were assigned to four dietary treatments; Control, Cu sulfate (200 ppm Cu as $CuSO_4{\cdot}5H_2O$), Cu-Met (200 ppm Cu as Cu-methionine chelate), Cu-SP (200 ppm Cu as Cu-soy proteinate). There were significant differences (p<0.05) among treatments in weight gain. Weight gain of Cu treated groups were higher than the control during 3~5 wk. There were significant differences (p<0.05) among treatments in feed intake during 0~3 wk. Cu-Met was significantly (p<0.05) lower than the control but the differences among Cu treatments were not significant. There were significant differences (p<0.05) among treatments in feed conversion rate (FCR). Cu treated groups were lower than the control during the whole period. Production efficiency factor (PEF) was significantly higher (p<0.01) in Cu treated groups than the control. Nutrient availabilities of diets were not significantly different among the treatments. The count of white blood cell (WBC) and eosinophil (EO) were lower in Cu-SP treatment than in the control. Copper concentration in the liver was significantly (p<0.01) higher in Cu treated groups than the control. Zinc concentration in the breast and wing muscle was lower in Cu treated and that of leg muscle was higher in Cu-Met than the control. The result of this experiment showed that Cu supplementation at the level of 200 ppm as Cu sulfate, Cu-Met and Cu-SP improves weight gain (4~5 wk), FCR and PEF. Differences among Cu sources were not significant.

New Approaches for Overcoming Current Issues of Plasma Sputtering Process During Organic-electronics Device Fabrication: Plasma Damage Free and Room Temperature Process for High Quality Metal Oxide Thin Film

  • Hong, Mun-Pyo
    • Proceedings of the Korean Vacuum Society Conference
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    • 2012.02a
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    • pp.100-101
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    • 2012
  • The plasma damage free and room temperature processedthin film deposition technology is essential for realization of various next generation organic microelectronic devices such as flexible AMOLED display, flexible OLED lighting, and organic photovoltaic cells because characteristics of fragile organic materials in the plasma process and low glass transition temperatures (Tg) of polymer substrate. In case of directly deposition of metal oxide thin films (including transparent conductive oxide (TCO) and amorphous oxide semiconductor (AOS)) on the organic layers, plasma damages against to the organic materials is fatal. This damage is believed to be originated mainly from high energy energetic particles during the sputtering process such as negative oxygen ions, reflected neutrals by reflection of plasma background gas at the target surface, sputtered atoms, bulk plasma ions, and secondary electrons. To solve this problem, we developed the NBAS (Neutral Beam Assisted Sputtering) process as a plasma damage free and room temperature processed sputtering technology. As a result, electro-optical properties of NBAS processed ITO thin film showed resistivity of $4.0{\times}10^{-4}{\Omega}{\cdot}m$ and high transmittance (>90% at 550 nm) with nano- crystalline structure at room temperature process. Furthermore, in the experiment result of directly deposition of TCO top anode on the inverted structure OLED cell, it is verified that NBAS TCO deposition process does not damages to the underlying organic layers. In case of deposition of transparent conductive oxide (TCO) thin film on the plastic polymer substrate, the room temperature processed sputtering coating of high quality TCO thin film is required. During the sputtering process with higher density plasma, the energetic particles contribute self supplying of activation & crystallization energy without any additional heating and post-annealing and forminga high quality TCO thin film. However, negative oxygen ions which generated from sputteringtarget surface by electron attachment are accelerated to high energy by induced cathode self-bias. Thus the high energy negative oxygen ions can lead to critical physical bombardment damages to forming oxide thin film and this effect does not recover in room temperature process without post thermal annealing. To salve the inherent limitation of plasma sputtering, we have been developed the Magnetic Field Shielded Sputtering (MFSS) process as the high quality oxide thin film deposition process at room temperature. The MFSS process is effectively eliminate or suppress the negative oxygen ions bombardment damage by the plasma limiter which composed permanent magnet array. As a result, electro-optical properties of MFSS processed ITO thin film (resistivity $3.9{\times}10^{-4}{\Omega}{\cdot}cm$, transmittance 95% at 550 nm) have approachedthose of a high temperature DC magnetron sputtering (DMS) ITO thin film were. Also, AOS (a-IGZO) TFTs fabricated by MFSS process without higher temperature post annealing showed very comparable electrical performance with those by DMS process with $400^{\circ}C$ post annealing. They are important to note that the bombardment of a negative oxygen ion which is accelerated by dc self-bias during rf sputtering could degrade the electrical performance of ITO electrodes and a-IGZO TFTs. Finally, we found that reduction of damage from the high energy negative oxygen ions bombardment drives improvement of crystalline structure in the ITO thin film and suppression of the sub-gab states in a-IGZO semiconductor thin film. For realization of organic flexible electronic devices based on plastic substrates, gas barrier coatings are required to prevent the permeation of water and oxygen because organic materials are highly susceptible to water and oxygen. In particular, high efficiency flexible AMOLEDs needs an extremely low water vapor transition rate (WVTR) of $1{\times}10^{-6}gm^{-2}day^{-1}$. The key factor in high quality inorganic gas barrier formation for achieving the very low WVTR required (under ${\sim}10^{-6}gm^{-2}day^{-1}$) is the suppression of nano-sized defect sites and gas diffusion pathways among the grain boundaries. For formation of high quality single inorganic gas barrier layer, we developed high density nano-structured Al2O3 single gas barrier layer usinga NBAS process. The NBAS process can continuously change crystalline structures from an amorphous phase to a nano- crystalline phase with various grain sizes in a single inorganic thin film. As a result, the water vapor transmission rates (WVTR) of the NBAS processed $Al_2O_3$ gas barrier film have improved order of magnitude compared with that of conventional $Al_2O_3$ layers made by the RF magnetron sputteringprocess under the same sputtering conditions; the WVTR of the NBAS processed $Al_2O_3$ gas barrier film was about $5{\times}10^{-6}g/m^2/day$ by just single layer.

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Analysis on the Labor Market Performance of Local University Graduates and Regional Education Gap (지방대학 졸업자의 노동시장 성과와 지역별 교육격차)

  • Kim, Hisam
    • KDI Journal of Economic Policy
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    • v.32 no.2
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    • pp.55-92
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    • 2010
  • In terms of labor market accomplishments, such as income, size of the company, and the matching quality between one's job and college major (specialization), a very large discrepancy is observed between the graduates from colleges located in Seoul and those outside Seoul. But, when the department average score of the Scholastic Aptitude Test (SAT) at the time of college entrance is controlled for, the discrepancy is found to be reduced to a considerable degree. In the case of wage gap, at least two third can be explained by the SAT score gap. The remaining wage gap seems to reflect the characteristics of workplace. In other words, graduates with high SAT scores enter colleges located in Seoul and thus tend to find better jobs leading to earning differences. This result that confirms the importance of aptitude test scores suggests that in the labor market, one of the major reasons behind a lower accomplishment of the graduate from local colleges is due to a lower competitiveness of local colleges in attracting the brightest students. But, this should not be viewed as only an internal problem of local colleges. This is because the growth of local economies tends to haul the advancement of local colleges in that area rather than being the other way around. The agglomeration effect in Seoul where headquarters of large corporations and financial institutions gather is the factor that has elevated the status of colleges located in Seoul since this provides highly preferred job choices of graduates. When the competitiveness of college is significantly influenced by exogenous factors, such as the vicinity to Seoul, the effort being made by colleges alone would not be enough to improve the situation. However, the central government, too, is not in the position to carry out countermeasure policies for such problems. The regional development strategy boosted through supportive policies for local colleges, such as financial support, is not based on the persuasive and empirical grounds. It is true that college education is universal and that the government''s intervention in assisting local colleges to secure basic conditions, such as tenure faculty and adequate facilities is necessary. However, the way of intervention should not be a support-only type. In order to improve the efficiency and effect of financial support, restructuring programs, including the merger and integration of insolvent colleges, should be underway prior to providing support. In addition, when the policy is focused on education recipients-local college students, and not on education providers-local colleges, the importance of regional gap in compulsory education (elementary and junior high schools) turns out to be much important as the gap between metropolitan area colleges and local colleges. Considering the educational gap before college entrance shown from the discrepancies of aptitude test scores among different regions, the imbalance between regions in terms of human resources is apparently derived from compulsory education, and not from college education. Therefore, there is a need to double the policy efforts to reduce the educational gap among different regions. In addition, given the current situation where it is difficult to find appropriate ex post facto policy measures to solve the problem of income gap between the graduates from metropolitan colleges and local colleges, it can be said that improving the environment for compulsory education in local areas is a growing necessity for bridging the educational gap among different regions.

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