• SUVANNABHUMI
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• v.15 no.2
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• pp.215-244
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• 2023

This study analyzes the effect of macroeconomic indicators such as foreign direct investment (FDI), domestic investment, trade, inflation, unemployment, population, and governance indicators on economic growth and points out the GDP growth rate in 2002- 2019 among ASEAN countries. Data were compiled from the Worldwide Governance Indicators (WGI) and the World Bank, and the effect of variables on GDP was predicted using the pooled ordinary least squares (POLS), fixed effects model (FEM), and random effects model (REM) methods. As a measure of growth, the GDP growth rate has been taken; FDI and domestic investment, trade, inflation, and governance indicators are positively connected and have an influence on economic growth in these ASEAN countries; domestic investment, population, and unemployment have a negative relationship to economic growth. The macroeconomic indicators and institutional stability of the nation have an effect on its economic growth. Comprehensive institutional stability and well-laid macroeconomic policies are required for growth to materialize.

• KDI Journal of Economic Policy
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• v.13 no.4
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• pp.141-153
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• 1991

The optimal choice of the tax rate and the inflation rate framework is extended to yield relevant interpretations for the optimal fiscal and monetary policy regime in Korea. To study the relationship between the government budget and monetary growth in different environments of policy coordination, two models assuming different degrees of fiscal dominance are developed. By modelling differing institutional arrangements of the fiscal and the monetary authority from an optimal government finance viewpoint, we find the optimal relationship among some important fiscal and monetary variables. By testing the existence of the relationship empirically, we find the characteristics of the optimal policy-mix regime in Korea. The first model-the strong from of fiscal dominance-studies the optimal collection of seigniorage in a period-by-period optimization with standard assumptions on the income velocity of money, deriving a general testable result: the optimal inflation/tax rate ratio co-vary with the marginal revenue ratio. The second model-the weak form of fiscal dominance-studies an implication of the inflationary bias of discretionary monetary policy in the presence of fiscal side distortions. This model shows that the tax rate and the inflation rate can have a positive correlation. Empirical tests of the theoretical results are done for the Korean economy for 1972-1989 period. The test results show that the macroeconomic policy regime in Korea can be characterized by the strong form of fiscal dominance, implying the importance of the government budget in explaining money growth and inflation.

• The Journal of Industrial Distribution & Business
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• v.9 no.7
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• pp.33-42
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• 2018

Purpose - This paper aims to verify whether the Fisher effect and the international Fisher effect are significant between China and South Korea in the long and short run, respectively. Research design, data, and methodology - The annual and monthly data, respectively, are employed to conduct an empirical estimation under the fully modified ordinary least squares(FMOLS). The nominal interest rate is treated as an independent variable. The inflation rate is treated as a dependent variable. Results - The results exhibit whenever in the long or short run, the Fisher effect exists in China and South Korea. However, the Fisher effect in South Korea is more significant than that of in China. Meanwhile, an empirical analysis is also preformed to investigate the long-run and the short-run international Fisher effect between China and South Korea. The deviation from the equilibrium relationship is that the commodity market and the Financial market have started to integrate in China. But China's integrated level proved to be relatively lower. Conclusions - To exploit that the Fisher effect and the international Fisher effect hold between China and South Korea can help both countries deal with the sufferings from integration of the commodity market and the financial market.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2012.05a
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• pp.161-163
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• 2012

Recently on Value Engineering(VE) and Life Cycle Cost(LCC) social interests is increasing. The government Turn Key, BTL projects and public works projects, such as VE and LCC Analysis on the value and economic analysis is mandatory. And accordingly the VE and LCC analysis is underway for the various studies. However, there is a problem existing in the LCC analysis. Worth the cost varies according to the flow of time. However, the real interest rate during the LCC analysis of buildings in calculation time for interest rates and inflation are not considering the value of the flow. In other words, a few years using the average value of the deterministic analysis method has been adopted. These costs for the definitive analysis of the cost of an uncertain future, unforeseen changes resulting hazardous value. In this study of the last 15 years interest rates and inflation targeting by using Monte-Carlo Simulation is to perform probabilistic analysis. This potential to overcome uncertainties of the cost of building a more scientific and LCC Estimation of the probability value of the real interest rate is presented.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.229-238
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• 2021

The article applies the ECM - ARDL model to examine the relationship between economic indicators and the existence of the disease in the long run of 10 ASEAN countries from 2000 to 2019. There are two models: The first model investigates the impact of GDP per capita, net inflow FDI, unemployment rate, and inflation rate on the proportion of export to GDP of ASEAN countries, the second model is similar to the first one but adds one more variable to the independent variable list - 'the variable for disease'. The results prove the long-run effect of GDP per capita, FDI, unemployment and inflation rate on export of the selected countries, though individual country shows differences in the sign and magnitude of these impacts. Surprisingly, the number of people suffering from disease does not affect the export of all selected countries as expected. The results of the two models also indicate that the disequilibrium in the short run converges to the equilibrium in the long run with a high proportion, especially in the case of Cambodia and the Philippines, with the rate of 95.65% and 151.94%, respectively. The findings can be useful for policymakers in promulgating efficient policies to enhance the trading activities of the selected countries.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.181-187
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• 2023

The study aimed to study the effect of the inflation rate, the real domestic product, the interbank lending interest rate, and the total deposits on credit facilities in Jordan for 2012-2021 through quarterly data. The study adopted the ARDL model. The study used the time series analysis method, as the study tests the stationarity of the time series. The results showed that the impact of inflation on the total credit facilities was negative. In contrast, the impact of each of the total deposits, real GDP, and the interest rate of interbank loans on the total credit facilities was positive and significant. The study recommended the need for the banking sector in Jordan to develop risk management mechanisms in a way that allows it to adapt to economic cycles and crises by conducting stress tests and developing scenarios that ensure the formation of sufficient provisions to meet emergencies. The study also recommended that the macroeconomic policy should be based on creating a stable macroeconomic environment that allows the efficient employment of resources in all economic sectors in a way that achieves high economic growth rates, which contributes to the promotion of economic recovery and is reflected in income. Hence, individuals have a greater ability to repay loans.

• KDI Journal of Economic Policy
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• v.29 no.2
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• pp.117-133
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• 2007

This paper evaluates the efficiency of monetary policy in Korea within the framework of interest rate feedback rules. For this, a small open macroeconomic model is constructed in a similar fashion to Ball (1999). The model is shown to capture key features of the Korean economy well. Using this estimated model, optimal instrument rules are derived for a set of different monetary policy objectives. Empirical results find that the actual monetary policy in the class of instrument rules was not very effective in stabilizing the output gap relative to inflation. However, seemingly successful inflation stabilization observed in the data are not consistent with the policy rules as the reaction of the interest rate to inflation is very low. It also appears that the central bank did not react right to movements in the real exchange rate. This paper offers some suggestions for the conduct of monetary policy in Korea.

• Transactions of the Korean Society of Automotive Engineers
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• v.4 no.1
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• pp.96-109
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• 1996

The airbag system is known to be extremely efficient for the protection in an automobile crash. The performance of the airbag system is evaluated by real tests. However, the test is very difficult and expensive. Therefore, the computational simulations are carried out with low cost. The airbag analysis is included in the anlysis of the full-car crashworthiness. The behavior of the airbag can be predicted by a thermodynamic analysis. The contact force between the occupant and the airbag is calculated from the contact volume and the pressure in the airbag. The injury rate is evaluated from the contact force and the acceleration of dummies. So far, the contact is defined after the airgag is fully inflated. In many cases, the occupant is seated in the out-of-position and the contact can happen during the inflation process. A new algorithm has been developed for the out-of-position. To describe the inflation process precisely, the airbag is defined by a sphere and a torus. The injury is evaluated for the contact happened at any time. The developed algorithm is coded and interfaced with an existing software in the public domain. The full-car modeling is adopted from the previous study which is tuned for the regular position and real tests. Numerical experimentation have been carried out with a couple of dummies in the out-of-position and the injury processes are analyzed.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.201-211
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• 2021

This study aims to analyze the determinants of macroeconomic and institutional stability on the development of the global sukuk market by controlling the effects of population. This study uses panel data namely GDP per-capita, exchange rate, and inflation as the proxies for macroeconomic stability sourced from the World Development Index, and six dimensions of Worldwide Governance Indicators (WGI) as institutional proxies sourced from WGI-World Bank. To make robust the relationship between macroeconomics and institutional on the global sukuk market, the population (POP) variable was included as a control variable. The development of sukuk uses a proxy for sukuk issuance in the International Islamic Financial Market, for the annual period from 2002-2017. The data was analyzed using the General Method of Moment, and the results show that by controlling the population effects that proved to be significant, GDP per-capita and the rule of law have a significant impact on the development of sukuk, especially when incorporating population effects as control variables, whereby further ascertaining the effect of each macroeconomic-stability variable and institutional stability on sukuk development, especially inflation, found not to affect sukuk development. These results also confirm the previous findings, whereby inflation remains controllable at a certain level for economic development.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.103-112
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• 2021

The labor force plays an important role in attracting foreign direct investment (FDI) both in developed and developing countries. In countries where there are appropriate policies for training human resources and maintaining the health of human resources, such countries have a competitive advantage and can attract FDI inflows, besides having a workforce to meet the needs of foreign investors. The purpose of this paper is to analyze the effect of the labor force and several other factors on FDI attraction in Vietnam. The empirical model is employed to perform regression and correlation on the impact of the labor force, real gross domestic product, inflation, index of business freedom, and index of investment freedom on Vietnam's FDI attraction by using a secondary time series data set during the period 1995-2018. The empirical results found that both labor force and inflation have a positive influence on FDI at a 5% significance level; index of business freedom has a positive impact on FDI at a 10% significance level, and real gross domestic product and index of investment freedom have a positive impact on FDI at a 1% significance level. From these results, this study proposes several important policy implications for Vietnam in attracting FDI in the future.