• Journal of Korea Port Economic Association
• /
• v.27 no.4
• /
• pp.207-218
• /
• 2011

This paper investigates the determinants of trade on Southeast Asia via Korean ports using monthly data. I employ Johansen cointegration methodology since the model must be stationary to avoid the spurious results. Johansen(1988) and Johansen and Juselius(1990) propose two statistics for testing the number of cointegrating vectors: the trace and maximum eigenvalue statistics. The null hypothesis that there is no cointegrating vector should be rejected at the 5% level. The results indicate that there is a long-run relationship between trade and variables. This also suggests that these variables have a meaningful equilibrium relationship between trade and variables would not move too far away from each other, displaying a comovement phenomenon for the export and import. Apparently, the error correction term reflects market information in a state of disequilibrium that is bound to be corrected when moving toward the long-run level.

• International Area Studies Review
• /
• v.15 no.3
• /
• pp.349-368
• /
• 2011

The emergence of new multipolar world economy along with the predominant growth of emerging economies encourages these emerging countries to internationalize their currencies. Currently the discrepancy between qualification and status of international currency is easily observed, and the emerging market currencies are no doubt underestimated considering their share of the world's economic size and trade volume. This paper studies the determinant factors of currency internationalization for five key currencies (US Dollar, Yen, Euro, Pound, and Swiss Franc). The analysis shows economic size, trade volume, and the stability of price and exchange rate are most important. Based on this result, Chinese Yuan is forecast to become a new international currency in the near future. Therefore, Korea needs to preempt the issue of regional economic integration, and even currency integration, by taking into account the possibility of internationalized Yuan.

• Korea Trade Review
• /
• v.48 no.4
• /
• pp.209-232
• /
• 2023

This study aims to estimate the export performance factors of Korean Steel Products to the EU and the expected changes in exports according to the CBAM(Carbon Border Adjustment Mechanism). the factors influencing the export performance of Korean Steel Products to the EU were analyzed using a Gravity Model, and the expected export amount in the case of a Carbon Tax was calculated assuming that the CBAM would be implemented in 2026, As a result, it was empirically analyzed that economic growth, population growth, exchange rate and manufacturing production index of each EU country have a positive effect on exports in Korea, and it was analyzed that the effects of the single market and system due to the EU's economic community were also helpful in increasing exports but the Carbon Tax is imposed in 2026, reducing Korea's steel exports by about -3.6% to -5.7%

• The Korean Journal of Financial Management
• /
• v.27 no.1
• /
• pp.181-208
• /
• 2010

In July 2007, Korean government has passed "The Capital Market and Financial Investment Services Act" to further develop the capital markets and the Act was to become effective in February 2009. Using a large sample of Korean firms, we have examined (i) the effect of underwriting activities on the firm value (bond spread) comparing commercial bank and investment bank, and (ii) the determinants of the firm value changes following underwriting activities of bank. To test our goal, we collected a wide range of samples of data for bond issuing activities executed by Korean firms listed on the Korea Stock Exchange (KSE) between 2000 and 2003. Our paper is distinguished from previous studies on this subject in a way that we analyzed the effect of corporate bond underwriting activities with regard to commercial banking and investment banking. Initially, we set up a hypothesis that "Certification View" and "Conflict-of-interest View" are major driving forces behind cross-firm differences in performance following bond issuance. We find that, in general, underwriting by investment bank (securities company) brings a positive effect on the firm value (spread between bench mark rate and bond issuing rate). This result indicates that firm value has been negatively affected by the bank underwriting and provides the evidence for "Conflict-of-interest View" in Korea. Our studies have also revealed that any change in firm value following bond issuance is positively related with the firm size (total asset), operating performance, liquidity (cashflow), and equity ownership by foreign investors. Overall, our results support the view that bank underwriting activities can play an important role in determining firm value and financial strategies under "The Capital Market and Financial Investment Services Act" of 2007.

• Journal of International Area Studies (JIAS)
• /
• v.14 no.2
• /
• pp.499-524
• /
• 2010

The purpose of this study is to based on review of theoretical and empirical studies to assess the independence of central banks - the former Socialist republics, including the Russian Federation and Czech, Poland. In addition, the work is expected to clarify whether a link exists between independence and the most important economic indicators such as inflation, economic activity, the budget deficit. And The subject of this study are the formal and actual independence of national banks, as well as limiting factors: political and economic. Background investigation of the problem of independence of central banks from the fact that, according to many economists, it is essential to the successful development of a market economy. The effectiveness of any country's economy due to currency volatility, low inflation, high reliability of the banking system, etc. As far as the independence of monetary regulation contributes to these goals - one of the most actively debated issues in the world of economic theory and practice for a long time. The issue of central bank independence is extremely important for Russia, Czech, Poland. In the near future to the central bank has important tasks, among which are the transition to inflation targeting in the rejection of significant intervention in the foreign exchange market, as well as improving the sustainability of the national banking system. Transparency and independence of the Bank of Russia, Czech Republic, Poland, in my view, should be an important factor in achieving these goals. The countries of Czech Republic, Poland have already made a number of steps to bring the status of their banks to the European standards. Many other developing countries are also in the process of reforming their central banks and the improving conditions of their functioning. However, despite the fact that as a model for reform used by the central banks of countries with developed market economies, central banks in developing countries are still yet deprived of the legal, economic and political independence. A different situation exists in transition space. Because of significant differences in the views of the authorities in transition republics at the necessary level of independence of central banks and the exchange rate and monetary policy reform of monetary management in these countries led to different results.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.19 no.3
• /
• pp.112-118
• /
• 2018

In order to meet the strict emission regulations for internal combustion engines based on fossil fuel, the proportion of after-treatments for vehicles and vessels is gradually increasing. Diesel engines have high power, good fuel economy, and lower $CO_2$ emissions, and their market shares are increasing in commercial vehicles and passenger cars. However, NOx is generated in the localized high-temperature combustion regions, and particulate matter is formed in the zones of diffusion combustion. LNT and urea-SCR catalysts have been developed for after-treatment of the exhaust gas to reduce NOx in diesel vehicles. This study aims to improve the NOx reduction performance of Cu SCR catalyst, which is widely used in light, medium, and heavy-duty diesel engines. The de-NOx performance of $5Cu-2ZrO_2$/93Zeolyst(Si/Al=13.7) SCR catalyst was about 5-50% higher than that of $5Cu-2ZrO_2$/93Zeolite(Si/Al=2.9) at catalyst temperatures of $300^{\circ}C$ or higher. The zeolite had lower metal dispersion than zeolyst, and the reaction rate of the catalyst decreased as the average particle size increased. The $10Cu-2ZrO_2$/88Zeolyst catalyst loaded with 10wt% Cu had the highest NOx conversion rate of 40% at $200^{\circ}C$ and about 65% at $350^{\circ}C$. The ion exchange rate of Cu ions increased with that of Al, the crystalline compound of zeolite, and the de-NOx performance was improved by 20-40% compared to other catalysts.

• Journal of Arbitration Studies
• /
• v.16 no.1
• /
• pp.253-275
• /
• 2006

Ever since the open and reform policy in 1987, China has adopted the socialistic market economy system and has been moving forward in economic reform. This gradually expanded their market economy. The open and reform policy achieved the highest average annual GDP growth rate of 9% and helped the country maintain high growth. China's economic growth in recent years has a lot to do with the international trading and direct investment by foreign corporations. China's entry into the WTO dramatically increased their amount of capital and investments due to their aggressive investments with foreign corporations. It is quite amazing that investments in China has been constantly increasing while the direct investments worldwide is decreasing. Moreover, increase in such investments is contributing to China's job creation, as well as, the expansion of international trading. When international economic exchange started between Japan and China in the 1970s, it was in the form of aid for developing countries, hence the collection of the investment was out of the question. It was in the 1990s that Japan started the full-scale investments with China and it was mostly centered in transfer of the production base. Japanese corporations aim was to mass produce goods less expensively using abundant and cheap labor and to sell them to Japan and other countries. The amount of Japan's exports and imports compared with China is increasing every year but the trade deficit has gone into the red. The dollar amount has been decreased from $ 27 billion in 2001 to $ 18 billion in 2003. The problems and damages in the system of justice and administrative confrontation that Japanese corporations are facing are continuously at a stand-still even after China's entry into the WTO. It has been 20 years since Japan's advance in China and during that period, the Japanese corporations brought many changes ranging from exports/imports to direct investment. Although Japan's new corporations tend to be located in the mid-western part of China, rather than the coastal areas, the region itself is not the cause for the confrontation. The problem stems from the Japanese treating the Chinese as if they were Japanese because they look similar due to their Asian ancestry. In reality the Chinese have completely different ways of doing business. Here we will take a look at the international trading and direct investment of Japanese corporations in China and study the conflicts that occurred in business transactions with China through real examples.

• Management & Information Systems Review
• /
• v.37 no.2
• /
• pp.87-108
• /
• 2018

This article explores the international trade flow of Bangladesh's ready-made garments (RMG). We first suggest the brief history and an international structure of trade among countries by using the trade volume. Then we implemented a gravity model regression with the sample of 38 major partner countries in order to investigate the potential export market for the RMG industry. The fixed effect and random effect model for the panel data during the period of 1990 to 2011 are estimated. Our result shows that Bangladesh's RMG exports are affected positively by the size of economy, inflation, exchange rate, foreign direct investment(FDI) and trade openness. On the other hand, the distance between trading partners are related negatively with the trade volume. We used the estimated coefficients from the panel regression in order to predict RMG export potential of Bangladesh. This might show which country is the promising export market for Bangladesh RMG industry. We found that Bangladesh has the highest potential of RMG export with Japan and USA, which seem to have considerable room for export growth if trade barriers and constraints are removed. We added some policy implications for encouraging the RMG export of Bangladesh by using the results from the analysis.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.12 no.10
• /
• pp.4359-4368
• /
• 2011

Among several macroeconomic missteps blamed for the recent global financial crisis including the social problems of income distribution and the lack of proper financial remedies, two of them have received particular attention: the global BOP(Balance of Payment) imbalance and the misguided monetary policy. Such BOP imbalance was blamed for massive foreign exchange investment flows from Asia into the U.S., triggering the financial and real estate bubble in America. The latter refers to the excessively loose monetary policy of the U.S. Federal Reserve, which pushed financial institutions and households into reckless investment behavior in search of higher returns. Given the abuse of certain innovative financial techniques and new investment instruments that have been created in recent decades, both collateralized debt obligations (CDOs) and credit default swaps (CDS) enjoyed a symbiotic and toxic relationship prior to the financial crisis This paper is organized as follows: The first section analyzes the real causes of the recent financial crisis. The second details the role of CDOs and CDS. Then, to identify key determinants of the CDS spreads in an emerging capital market, the sample data of major Korean firms' CDS spreads are used to estimate the risk premium by utilizing the multiple regression analysis. The empirical test result indicates that Korean 3-year treasury bond rate(TYIELD), market to book value ratio(MV/BV), and assets size(INASSETS) are shown to demonstrate statistically significant influences on the changes of the CDS premium for sample firms.

• Environmental and Resource Economics Review
• /
• v.24 no.3
• /
• pp.523-549
• /
• 2015

This paper investigates an oil refiner's asymmetric behavior in the adjustments of gasoline and diesel prices to changes in his own price and his rivals' prices as well as input costs. An asymmetric error correction model which allows a firm's pricing behavior to the deviation of other firms' prices from their long-run equilibrium level is employed for estimation using weekly data for the period April 2009 to January 2015. Evidence is found that there is a significant degree of asymmetry in the adjustment of wholesale prices to changes in crude oil price. A similar result in regard to the exchange rate is also found by the data. The estimation results for firm's response to changes in other firms' prices indicates that implicit collusion could be more easily exploited in the wholesale petroleum market as results of firms' interaction with each other and anticipation of rivals' pricing behavior. A few refiners show competitive price adjustment in response to the upward deviation of the others' prices from their equilibrium level.