• International Commerce and Information Review
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• v.15 no.4
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• pp.195-216
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• 2013

In this paper, I investigate how international prices affect domestic prices and export prices in Korea by using vector error correction model(VECM) and estimate its impact on international trade. According to the empirical results, international prices, such as world raw material prices and oil prices, make stronger effects on domestic prices, in order of import, export, producer, and consumer prices. And recent years the effect of international raw material prices on domestic prices becomes larger. It implies importers, exporters and producers are more affected by international prices than consumers are. Therefore, the international trade, import and export, is affected by changes in international prices. Firms, especially importing and exporting companies, should do much efforts on risk managing about raw material prices variation, diversification of raw material suppliers, and oversea resources development. The government is needed to support on firms those efforts while doing its economic policies to cope with economic conditions and the price policy.

• Journal of Energy Engineering
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• v.28 no.2
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• pp.1-17
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• 2019

This article analyzes causal relationships among gross domestic product(GDP), electricity consumption, carbon dioxide($CO_2$) emission and foreign direct investments(FDI) inflow of Korea over the period from 1976 to 2014, using unit root test, cointegration test, and vector error correction model(VECM). As the results, this article found (1) a long-run bi-directional causality between GDP and electricity consumption, which may imply a negative impact of electricity consumption-saving policy on economic growth, (2) uni-directional short- and long-run causalities running from $CO_2$ emission to GDP, and a uni-directional long-run causality running from $CO_2$ emission to electricity consumption, which can result in a negative impact of $CO_2$ emission reduction policy on economic growth and electricity consumption, (3) a uni-directional long-run causality running from FDI to GDP, and uni-directional short- and long-run causalities running from FDI to electricity consumption, which may result from relatively lower electricity prices than investing countries, (4) no causality between FDI and $CO_2$ emission, which is based on the characteristics of FDI composed of service industries. Considering the above causal relationships among the four variables, the policy implication needs to focus on the electricity demand management based on the relevant R&Ds, and on the gradual transition from fossil fuel- to renewable-energy. Adaptive policy to increase the FDI inflow is also needed.

• Korea Trade Review
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• v.43 no.4
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• pp.155-175
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• 2018

This study estimates the technical efficiency and total factor productivity(TFP) of and analyzes the relationship between TFP and exports for Korean manufacturing companies from 2000 to 2016. Specially, TFP is decomposed into Technical Change(TC), Technical Efficiency Change (TEC), and Sale Effect(SE), and compared between large and small enterprises. First, in the case of technical efficiency, the Korean economy has been very vulnerable to external shocks, such as the sharp decline following the 2008 financial crisis. The efficiency of the electronics, automobile, and machinery sectors is low and needs to be improved. In addition, the technological efficiency of large enterprises is higher than that of SMEs in most manufacturing sub-sectors except for non-ferrous metals. In the case of TFP, most changes are due to TC, and the effective combination of labor, capital and the effect of scale have little effect, suggesting that improvement of internal structure is urgent. In addition, volatility due to the impact of the financial crisis in 2008 was much larger in SMEs than in large companies, so external economic impacts are more greater for SMEs than large enterprises. The relationship between TFP decomposition factors and exports shows that TC has a positive effect only on exports of SMEs. Therefore, in order to increase exports, in the case of SMEs, R&D support to promote technological development is needed. In the case of large companies, it is necessary to establish differentiated strategies for each export market, competitor company, and item to link efficiency and scale effect of exports.

• Journal of Korea Port Economic Association
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• v.39 no.4
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• pp.243-254
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• 2023

This study investigates the factors contributing to price fluctuations in the shipscrapping market, the final stage in a vessel's life cycle. Shipping companies make decisions on ship dismantling based on factors such as declining freight rates, increasing vessel age leading to higher costs, or compliance with new environmental regulations. Utilizing the FMOLS (Fully Modified Ordinary Least Squares) and VECM (Vector Error Correction Model) methodologies, the research explores the long-term elasticities of factors influencing shipscrapping prices and examines short-term causal relationships. Using a time series dataset spanning from December 2015 to April 2023, covering a total of 90 months, the study focuses on the shipscrapping prices of Capesize vessels in India and Bangladesh, which constitute a significant portion of the shipbreaking market. The findings indicate that, in the long term, shipscrapping prices are closely related to global scrap prices, 20-year-old secondhand Capesize vessel prices, newbuilding prices, and exchange rates. In terms of short-term causal relationships, an increase in global scrap prices induces a rise in shipscrapping prices, while the remaining variables do not contribute to such increases. Specifically, an escalation in shipscrapping prices is associated with increased prices of 20-year-old secondhand vessels, newbuilding prices, and exchange rates. However, the other variables do not show a significant influence on short-term increases in shipscrapping prices.