Changes in Stock Market Co-movements between Contracting Parties after the Trade Agreement and Their Implications
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- Journal of Korea Trade
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- v.27 no.1
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- pp.139-158
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- 2023
Purpose - The study of co-movements between stock markets is a crucial area of finance and has recently received much interest in a variety of studies, especially in international finance. Stock market co-movements are a major phenomenon in financial markets, but they are not necessarily independent of the real market. Several studies support the idea that bilateral trade linkages significantly impact stock market correlations. Motivated by this perspective, this study investigates whether real market integration due to trade agreements brings about financial market integration in terms of stock market co-movement. Design/methodology - Over the 10 free trade agreements (FTAs) signed by the United States, using a dynamic conditional correlations (DCC) multivariate GARCH (MGRACH) model, we empirically measure the degree of integration by finding DCCs between the US market and the partner country's market. We then track how these correlations evolve over time and compare the results before and after trade agreements. Findings - According to the empirical results, there are positive return spillover effects from the US market to eight counterpart equity markets, except Jordan, Morocco, and Singapore. Especially Mexico, Canada, and Chile have large return spillover effects at the 1% significance level. All partner countries of FTAs generally have positive correlations with the US over the entire period, but the size and variance are somewhat different by country. Meanwhile, not all countries that signed trade agreements with the United States showed the same pattern of stock market co-movement after the agreement. Korea, Mexico, Chile, Colombia, Peru, and Singapore show increasing DCC patterns after trade agreements with the US. However, Canada, Australia, Bahrain, Jordan, and Morocco do not show different patterns before and after trade agreements in DCCs. These countries generally have the characteristic of relatively lower or higher co-movements in stock markets with the US before the signing of the FTAs. Originality/value - To our knowledge, few studies have directly examined the linkages between trade agreements and stock markets. Our approach is novel as it considers the problem of conditional heteroscedasticity and visualizes the change of correlations with time variations. Moreover, analyzing several trade agreements based on the United States enables the results of cross-country pairs to be compared. Hence, this study provides information on the degree of stock market integration with countries with which the United States has trade agreements, while simultaneously allowing us to track whether there have been changes in stock market integration patterns before and after trade agreements.
Damage by high-speed impact fracture is a dominant mode of failure in several applications of concrete structures. Numerical modelling can play a crucial role in understanding and predicting complex fracture processes. The commonly used mesh-based Finite Element Method has difficulties in accurately modelling the high deformation and disintegration associated with fracture, as this often distorts the mesh. Even with careful re-meshing FEM often fails to handle extreme deformations and results in poor accuracy. Moreover, simulating the mechanism of fragmentation requires detachment of elements along their boundaries, and this needs a fine mesh to allow the natural propagation of damage/cracks. Smoothed Particle Hydrodynamics (SPH) is an alternative particle based (mesh-less) Lagrangian method that is particularly suitable for analysing fracture because of its capability to model large deformation and to track free surfaces generated due to fracturing. Here we demonstrate the capabilities of SPH for predicting brittle fracture by studying a slender concrete structure (column) under the impact of a high-speed projectile. To explore the effect of the projectile material behaviour on the fracture process, the projectile is assumed to be either perfectly-elastic or elastoplastic in two separate cases. The transient stress field and the resulting evolution of damage under impact are investigated. The nature of the collision and the constitutive behaviour are found to considerably affect the fracture process for the structure including the crack propagation rates, and the size and motion of the fragments. The progress of fracture is tracked by measuring the average damage level of the structure and the extent of energy dissipation, which depend strongly on the type of collision. The effect of fracture property (failure strain) of the concrete due to its various compositions is found to have a profound effect on the damage and fragmentation pattern of the structure.
Positioning systems have been actively researched and developed over the past few years and have been used in many applications. This paper presents a method to determine a location in a large space using a sensor system consisting of an accelerometer and a single-axis gyroscope. In particular, to consider usability, a sensor device was loosely worn on the waist so that the experimental data could be used in practical applications. Based on the experimental results of circular tracks with radiuses of 1m and 3m, in this paper, an algorithm using the threshold of rotation angle was proposed and applied to the experimental results. A tracking experiment was performed on the grid-pattern track model. For raw sensor data, the average deviation between the final tracking point and the target point was approximately 15.2 m, which could be reduced to approximately 4.0 m using an algorithm applying the rotation angle threshold.
The purpose of this paper was to architecture optimal model of the scooped swing in high bar. The scooped swing was modeled to the double pendulum and was simulated with the Lagrange's equation of motion. Lagrange's method based on a energy approaching method was implemented as a equation of motion. The subject was a national man-gymnast(age 18yrs, height 153 cut mass 48 kg) and the high bar of SPIETH company was used to measure the scooped swing. Qualisys system(six MCU-240 cameras, QTM software)was used to capture data for imaging analysis. The solution of a model and data processing were solved in Mathematica5.0. The results were as follows: First model value of maximum bar displacement was longer than experimental value, that is, 0.02 m. Second, both angular pattern of segment1(HAT) had a increasing curve but curve patterns had a different concave and convex me. Third the experimental value of maximum angular angle of segment2(total leg) had larger than model value, that is,
Harmonic analysis enables to characterize patterns of variation in MODIS NDVI time series data and track changes in ground vegetation cover. In harmonic analysis, a periodic phenomenon of time series data is decomposed into the sum of a series of sinusoidal waves and an additive term. Each wave is defined by an amplitude and a phase angle and accounts for the portion of variance of complex curve. In this study, harmonic analysis was explored to tract ground vegetation variation through time for land-cover vegetation change detection. The process also enables to reconstruct observed time series data including various noise components. Harmonic model was tested with simulation data to validate its performance. Then, the suggested change detection method was applied to MODIS NDVI time series data over the study period (2006-2012) for a selected test area located in the northern plateau of Korean peninsula. The results show that the proposed approach is potentially an effective way to understand the pattern of NDVI variation and detect the change for long-term monitoring of land cover.
Petri dishes and glass slides have been widely used as general substrates for in vitro mammalian cell cultures due to their culture viability, optical transparency, experimental convenience, and relatively low cost. Despite the aforementioned benefit, however, the flat two-dimensional substrates exhibit limited capability in terms of realistically mimicking cellular polarization, intercellular interaction, and differentiation in the non-physiological culture environment. Here, we report a protocol of culturing embryonic rat hippocampal neurons on the electro-spun polymeric network and the results from examination of neuronal cell behavior and network formation on this culture platform. A combinatorial method of laser-scanning confocal fluorescence microscopy and live-cell imaging technique was employed to track axonal outgrowth and synaptic connectivity of the neuronal cells deposited on this model culture environment. The present microfiber-based scaffold supports the prolonged viability of three-dimensionally-formed neuronal networks and their microscopic geometric parameters (i.e., microfiber diameter) strongly influence the axonal outgrowth and synaptic connection pattern. These results implies that electro-spun fiber scaffolds with fine control over surface chemistry and nano/microscopic geometry may be used as an economic and general platform for three-dimensional mammalian culture systems, particularly, neuronal lineage and other network forming cell lines.
The automated prediction system for seasonal tropical cyclone (TC) activity is established at the National Typhoon Center of the Korea Meteorological Administration (KMA) to provide effective operation and control of the system for user who lacks knowledge of the system. For automation of the system, two procedures which include subjective decisions by user are performed in advance, and their output data are provided as input data. To provide the capability to understand the operational processes for operational user, the input and output data are summarized with each process, and the directory structure is reconstructed following KMA's standard. We introduce a user interface using namelist input parameters to effectively control operational conditions which is fixed or should be manually set in the previous version of the prediction system. To operationally use early prediction which become available through the automation, its performances are evaluated according to initial condition dates. As a result, high correlations between the observed and predicted TC counts are kept for all track clusters even though advancing the initial condition date from May to January.
Recently, as the information communication technology develops, the discussion regarding the ubiquitous environment is occurring in diverse perspectives. Ubiquitous environment is an environment that could transfer data through networks regardless of the physical space, virtual space, time or location. In order to realize the ubiquitous environment, the Pervasive Sensing technology that enables the recognition of users' data without the border between physical and virtual space is required. In addition, the latest and diversified technologies such as Context-Awareness technology are necessary to construct the context around the user by sharing the data accessed through the Pervasive Sensing technology and linkage technology that is to prevent information loss through the wired, wireless networking and database. Especially, Pervasive Sensing technology is taken as an essential technology that enables user oriented services by recognizing the needs of the users even before the users inquire. There are lots of characteristics of ubiquitous environment through the technologies mentioned above such as ubiquity, abundance of data, mutuality, high information density, individualization and customization. Among them, information density directs the accessible amount and quality of the information and it is stored in bulk with ensured quality through Pervasive Sensing technology. Using this, in the companies, the personalized contents(or information) providing became possible for a target customer. Most of all, there are an increasing number of researches with respect to recommender systems that provide what customers need even when the customers do not explicitly ask something for their needs. Recommender systems are well renowned for its affirmative effect that enlarges the selling opportunities and reduces the searching cost of customers since it finds and provides information according to the customers' traits and preference in advance, in a commerce environment. Recommender systems have proved its usability through several methodologies and experiments conducted upon many different fields from the mid-1990s. Most of the researches related with the recommender systems until now take the products or information of internet or mobile context as its object, but there is not enough research concerned with recommending adequate store to customers in a ubiquitous environment. It is possible to track customers' behaviors in a ubiquitous environment, the same way it is implemented in an online market space even when customers are purchasing in an offline marketplace. Unlike existing internet space, in ubiquitous environment, the interest toward the stores is increasing that provides information according to the traffic line of the customers. In other words, the same product can be purchased in several different stores and the preferred store can be different from the customers by personal preference such as traffic line between stores, location, atmosphere, quality, and price. Krulwich(1997) has developed Lifestyle Finder which recommends a product and a store by using the demographical information and purchasing information generated in the internet commerce. Also, Fano(1998) has created a Shopper's Eye which is an information proving system. The information regarding the closest store from the customers' present location is shown when the customer has sent a to-buy list, Sadeh(2003) developed MyCampus that recommends appropriate information and a store in accordance with the schedule saved in a customers' mobile. Moreover, Keegan and O'Hare(2004) came up with EasiShop that provides the suitable tore information including price, after service, and accessibility after analyzing the to-buy list and the current location of customers. However, Krulwich(1997) does not indicate the characteristics of physical space based on the online commerce context and Keegan and O'Hare(2004) only provides information about store related to a product, while Fano(1998) does not fully consider the relationship between the preference toward the stores and the store itself. The most recent research by Sedah(2003), experimented on campus by suggesting recommender systems that reflect situation and preference information besides the characteristics of the physical space. Yet, there is a potential problem since the researches are based on location and preference information of customers which is connected to the invasion of privacy. The primary beginning point of controversy is an invasion of privacy and individual information in a ubiquitous environment according to researches conducted by Al-Muhtadi(2002), Beresford and Stajano(2003), and Ren(2006). Additionally, individuals want to be left anonymous to protect their own personal information, mentioned in Srivastava(2000). Therefore, in this paper, we suggest a methodology to recommend stores in U-market on the basis of ubiquitous environment not using personal information in order to protect individual information and privacy. The main idea behind our suggested methodology is based on Feature Matrices model (FM model, Shahabi and Banaei-Kashani, 2003) that uses clusters of customers' similar transaction data, which is similar to the Collaborative Filtering. However unlike Collaborative Filtering, this methodology overcomes the problems of personal information and privacy since it is not aware of the customer, exactly who they are, The methodology is compared with single trait model(vector model) such as visitor logs, while looking at the actual improvements of the recommendation when the context information is used. It is not easy to find real U-market data, so we experimented with factual data from a real department store with context information. The recommendation procedure of U-market proposed in this paper is divided into four major phases. First phase is collecting and preprocessing data for analysis of shopping patterns of customers. The traits of shopping patterns are expressed as feature matrices of N dimension. On second phase, the similar shopping patterns are grouped into clusters and the representative pattern of each cluster is derived. The distance between shopping patterns is calculated by Projected Pure Euclidean Distance (Shahabi and Banaei-Kashani, 2003). Third phase finds a representative pattern that is similar to a target customer, and at the same time, the shopping information of the customer is traced and saved dynamically. Fourth, the next store is recommended based on the physical distance between stores of representative patterns and the present location of target customer. In this research, we have evaluated the accuracy of recommendation method based on a factual data derived from a department store. There are technological difficulties of tracking on a real-time basis so we extracted purchasing related information and we added on context information on each transaction. As a result, recommendation based on FM model that applies purchasing and context information is more stable and accurate compared to that of vector model. Additionally, we could find more precise recommendation result as more shopping information is accumulated. Realistically, because of the limitation of ubiquitous environment realization, we were not able to reflect on all different kinds of context but more explicit analysis is expected to be attainable in the future after practical system is embodied.
The wall shear stress in the vicinity of end-to end anastomoses under steady flow conditions was measured using a flush-mounted hot-film anemometer(FMHFA) probe. The experimental measurements were in good agreement with numerical results except in flow with low Reynolds numbers. The wall shear stress increased proximal to the anastomosis in flow from the Penrose tubing (simulating an artery) to the PTFE: graft. In flow from the PTFE graft to the Penrose tubing, low wall shear stress was observed distal to the anastomosis. Abnormal distributions of wall shear stress in the vicinity of the anastomosis, resulting from the compliance mismatch between the graft and the host artery, might be an important factor of ANFH formation and the graft failure. The present study suggests a correlation between regions of the low wall shear stress and the development of anastomotic neointimal fibrous hyperplasia(ANPH) in end-to-end anastomoses. 30523 T00401030523 ^x Air pressure decay(APD) rate and ultrafiltration rate(UFR) tests were performed on new and saline rinsed dialyzers as well as those roused in patients several times. C-DAK 4000 (Cordis Dow) and CF IS-11 (Baxter Travenol) reused dialyzers obtained from the dialysis clinic were used in the present study. The new dialyzers exhibited a relatively flat APD, whereas saline rinsed and reused dialyzers showed considerable amount of decay. C-DAH dialyzers had a larger APD(11.70
The wall shear stress in the vicinity of end-to end anastomoses under steady flow conditions was measured using a flush-mounted hot-film anemometer(FMHFA) probe. The experimental measurements were in good agreement with numerical results except in flow with low Reynolds numbers. The wall shear stress increased proximal to the anastomosis in flow from the Penrose tubing (simulating an artery) to the PTFE: graft. In flow from the PTFE graft to the Penrose tubing, low wall shear stress was observed distal to the anastomosis. Abnormal distributions of wall shear stress in the vicinity of the anastomosis, resulting from the compliance mismatch between the graft and the host artery, might be an important factor of ANFH formation and the graft failure. The present study suggests a correlation between regions of the low wall shear stress and the development of anastomotic neointimal fibrous hyperplasia(ANPH) in end-to-end anastomoses. 30523 T00401030523 ^x Air pressure decay(APD) rate and ultrafiltration rate(UFR) tests were performed on new and saline rinsed dialyzers as well as those roused in patients several times. C-DAK 4000 (Cordis Dow) and CF IS-11 (Baxter Travenol) reused dialyzers obtained from the dialysis clinic were used in the present study. The new dialyzers exhibited a relatively flat APD, whereas saline rinsed and reused dialyzers showed considerable amount of decay. C-DAH dialyzers had a larger APD(11.70