Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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The Influences of the Globalization Factors on Consumption

소비에 대한 요인별 세계화의 영향 분석

  • 윤재형 (국립안동대학교 경제학과)
  • Received : 2019.11.30
  • Accepted : 2019.12.24
  • Published : 2019.12.30
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Abstract

This study analyzes the effects of trade globalization and financial globalization on consumption classified by type(durable, quasi-durable, non-durable and service). On the other hand, trade globalization and financial globalization were decomposed into OECD common factor, regional factors, and the idiosyncratic country-specific factors by time-varying dynamic factor analysis. The characteristics of OECD common factor, regional factors, and the idiosyncratic country-specific factors of trade and financial globalization were analyzed. Furthermore, the influences of these factors on consumption by type were analyzed. The analysis shows that globalization has negative effects on consumption. In particular, we found out that the idiosyncratic country-specific factor of Korea in trade and financial globalization had a statistically significant negative effect on consumption. We can infer that the globalization affecting consumption can be attributed to the idiosyncratic country-specific factor, which is economic choice rather than uncontrollable global trend. Accordingly, to solve the sluggish consumption problem caused by globalization, it is necessary to require not only domestic consumption expansion policies but also the efforts to resolve economic polarization problems to be able to stimulate consumption.

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