• Asia-Pacific Journal of Business
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• v.13 no.1
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• pp.37-52
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• 2022

Purpose - The objective of this study is to investigate what motivates global FDI inflows in the different economic development level and to clarify the FDI motivation type in the level of qualitative economic growth. Design/methodology/approach - Major macroscopic social·economic factors induced FDI inflows were analyzed using fixed-effect panel regression with 30-year panel data of 28 countries from 1985 to 2014. For analysis in the stage of economic growth, two category of developed and developing countries was used. And to analyze FDI motivation type in the level of qualitative economic growth, 4 shares of GDP; consumption·government·investment expenditure and export, was used as explanatory variable. Findings - In developed country, TFP(total factor productivity) and GDP have a great influence on FDI inflows, and consumption and labor compensation have a slight effect. This result indicates that the market seeking-driven, horizontal type investment is shown along with efficiency seeking investment. In developing country, human capital and TFP is shown to have greater impact on FDI inflows and labor compensation, exports, investment and government expenditures also have impacts. Thus it has confirmed that not only efficiency-seeking vertical investment for using low cost well educated laborer, but also government-driven economic growth and export policies could affect the FDI inflows. Research implications or Originality - The FDI investment decision making of multinational companies is decided by their own purpose. But, in the concept of as follows; 1) FDI is a long-term capital flowing for maximization of economic utility with limited global resource, 2) Thus FDI could be affected by macro socio·economic factors of host country. 3) Also such macro factors is different by each economic growth qualitative level. Therefore macro socio·economic factors of each country could be affected by the qualitative level of their own economic growth. To attract FDI inflows, it is desirable to implement differentiated incentive policies in the qualitative level of economic growth. Furthermore in developing countries it is recommended to implement government driven economic growth policies as follows; fostering well educated human resources, improving technology productivity in the relative lower cost labor market compared to developed countries and boosting international export volume.

• Journal of Korea Trade
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• v.24 no.6
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• pp.115-134
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• 2020

Purpose - International trade leads to the international division of labor, improving the efficiency of the global economic system. Transport costs are a more serious barrier to international trade than customs tariffs. An increase in competition in the transport sector may thus lead to a reduction in transport costs. However, if a carrier's nationality significantly influences transport costs, simply adding more competing carriers of different nationalities would be ineffective. Therefore, it is necessary to establish national or regional carriers to influence competition and reduce transport costs. This study investigates this "nationality effect" by treating Hanjin Shipping's collapse as a natural experiment. Design/methodology - The theoretical basis of this study is the 3rd-degree price discrimination in container shipping market. By using the monthly data of container freight rates of Korea, China and Japan, this study shows the so-called Korea Premiums, which are the empirical counterparts of nationality effect in Korea container shipping market. For this empirical investigation, the structural model with state-space form is used and the dummy models are also estimated. In addition, because China has been also affected by the Hanjin's collapse, the China premiums are considered too. Findings - Compared with Japan's case, it is shown that there had been the so-called Korea premiums since the collapse of Hanjin Shipping. These results are robust from both the state-space model and dummy models. The time pattern of Korea premiums was consistent with the market evolution, especially the pattern of substitutability in container shipping markets. In addition, this paper shows the magnitude of Korea premiums. Originality/value - The argument of this study that the nationality effect can be interpreted as an extended concept of the home market effect is original, which is expected to evoke future research efforts. Further, the discussion on the shipping industrial policy from both horizontal and vertical aspects will provide the relevant policy makers with solid information, especially for the policy coordination in a global scale.

• Asia-Pacific Journal of Business
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• v.13 no.4
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• pp.25-43
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• 2022

Purpose - This study is to investigate the direct and moderating effect of intangible variable like economic freedom to facilitating factors on FDI(foreign direct investment) inflows and the difference of facilitating factors by the stage of economic development. Design/methodology/approach - Fixed-effect panel regression analysis with 19-year macro economic data from 2000 to 2019 including economic freedom index from Fraser Institute in 13 developed and 15 developing countries was used. Research implications or Originality - In analysis of direct effect of 5 sectors in economic freedom, the influence of economic freedom was shown weaker than other macro economic factors on FDI inflows, which indicates that actual development of economic factors are more important. The effect of economic freedom on FDI inflows at the stage of economic development differed. In developed countries, human capital, GDP, export, free trade and regulation affected FDI inflows in decreasing order, as did human capital, GDP, consumption expenditure, export, investment expenditure, government expenditure, free trade and sound money in developing countries. In analysis of moderating effect of economic freedom, a domestic and international market size, a flexible labor market which can provide a cheaper good human resources and government expenditures for improving social infrastructure under free economic environment facilitated FDI inflows. However, the statistical significance of moderating effect on export was not shown, which indicates that economic freedom policy itself without actual improvement of exports could not attract FDI inflows.

• International Journal of Computer Science & Network Security
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• v.22 no.2
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• pp.385-393
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• 2022

In the study of the mechanism of labor motivation as a determinant of economic security of the enterprise in competitive conditions, it was found that motivation is determinant in creating the conditions for production and ensuring the active functioning of the enterprise. It is substantiated that the motivational mechanism is the presence of a system of levers, incentives, measures and other elements for economic and administrative incentives for employees, which are used for incentives to work, increase productivity and safety, and more. The motivational mechanism plays an important role in ensuring the economic security of the enterprise and at the same time is a lever to increase competitiveness in the market. The functions of the mechanism of labor motivation are singled out, among which: explanatory-substantiating, regulative, communicative, socialization, regulating. The stages of occurrence of the motive for the employee are classified. The interrelation of motives and incentives in the mechanism of labor motivation as determinants of economic security of the enterprise in competitive conditions is proved. It is proved that the mechanism of labor motivation as a determinant of economic security of the enterprise in competitive conditions should be aimed at: assistance in forming and achieving goals and objectives of the enterprise and achieving balance and equilibrium of economic goals and social responsibility of the enterprise; ensuring close cooperation between management and employees of the enterprise; focus on building a flexible mechanism; transition to a democratic style of governance and involvement of employees in decision-making.

• The Journal of Industrial Distribution & Business
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• v.8 no.6
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• pp.33-40
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• 2017

Purpose - This study attempted to discover the impact of the Korea-China FTA(Free Trade Agreement) on electronic products distribution industry. Strategies will be provided to expand both countries' trade after the Korea-China FTA. Research design, data, and methodology - This study analyzed the differences before and after the Korea-China FTA, using an RCA(Revealed Comparative Advantage) index, TC(Technology Sophistication Index) index and TSI(Trade Specialization Index) that considered the FTA tariff situation. Data was collected from the International Trade Statistics Database and Korea, China Customs Service. Results - The results indicate that following the Korea-China FTA, China and Korea's bilateral trade of electronic products is expected to expand, and both countries will experience net welfare gains from the markets' expansion. Korea is competitive in several key products, although it faces competition from China. China's electronic products' competitiveness have indicated an increasing trend. Conclusions - The two countries should closely cooperate and communicate with each other. Ultimately, Korea should focus on high-tech, sophisticated techniques to gain market advantage. On the other hand, with the tariff decrease as well as the labor cost and labor force base, China will greatly be able to benefit from the manufacturing of medium- to low-end products in the future.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.771-781
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• 2021

The purpose of this study is to identify major drivers of Myanmar's long-term economic growth and draw implications to implement development policies. This study investigated Myanmar, as the country is the most recently opened economy in Southeast Asia. This study conducted simulation analysis based on scenarios by applying World Bank's Long-Term Growth Model, Penn World Table 9.1, and World Development Indicator data. This study makes extensive use of LTGM and the LTGM-TFP extension to improve the validity of models for data calibration. This study confirms the validity of the model with data calibration and specifies scenarios for simulation analyses by setting the growth trajectory of Vietnam due to common geographical, political, and economic conditions. Main findings include that Myanmar's economic growth rate will continue to fall below 3% in 2040 without proper improvement of growth drivers. The results of this study also provide that total factor productivity growth and female labor participation are key factors for Myanmar's long-term economic growth. This study advises policymakers in Myanmar to strengthen human capital, which is crucial for total factor productivity growth in Myanmar's context and directly affects economic growth. Further, labor market policies to promote female labor participation is important to sustain economic growth.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.20 no.43
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• pp.381-392
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• 1997

Korea and Japan have maintained an intimate relationship of economic exchange. However, even though both countries have made sound advances in the ASIAN market, they have not established mutually remarkable cooperative relations and advances in the ASIAN market. If korean companies with abundant experience and management ability provide able managers and skilled labor and if Japanese companies provide construction technology, capital and information, they could enjoy enomorous mutual benefits by advancing in the area of plant construction in foreign countries. Therefore, if they cooperate with each other by establishing complementary cooperation, both countries can gain an advantage in international competitiveness with western advanced countries.

• International Journal of Contents
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• v.18 no.3
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• pp.66-73
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• 2022

The purpose of this study is to evaluate the economic and social impact of the SEP in which the elderly participate by using the blended return on investment (BROI), economic return on investment (EROI), and social return on investment (SROI) research methods. And the sustainable conditions of SEP were confirmed. This study was conducted with one market-type SEP approved by the Korea Elderly Labor Force Development Institute (KLFDI), one preliminary social enterprise approved by Changwon City Hall, and one market-type SEP operated by a social welfare center for the elderly. As a result of the study, it was found that EROI, SROI, and BROI were the highest in the SEP of preliminary social enterprises operated by subsidies in Changwon.However, the difference between EROI and SROI was greatest in the market-type SEP operated by the elderly social welfare center. There was a big difference between economic and social impacts. The social influence of the elderly was evaluated to be higher than the income of the elderly.

• Korea Trade Review
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• v.45 no.4
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• pp.171-194
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• 2020

Although there is a lot of literature on the effectiveness of regional trade agreements(RTAs), it is usually analyzed only using trade-related theories and data. However, this paper has a differentiation in that we examine the linkage between international trade and financial markets through the stock markets reactions when the trade agreements related news arrived. Specifically, using an event study, we look into the Korea-US free trade agreement(KORUS FTA) which is the most commercially significant FTA in almost two decades for both the countries. Korean stock market generally responded more sensitively to FTA news than the US stock market, especially in 'Auto & Parts', 'Electrical Equipment' and 'Chemicals' industries. And the investors' perception toward the effect of KORUS FTA on Korean industries changed from negative to positive as negotiations proceed. Korea has a comparative advantage in the production of labor-intensive goods relative to US, but the economies of scale hypothesis does not hold.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.68
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• pp.149-169
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• 2015

Recently, it's a trend that the third party outsourcing logistics will be increased a logistics flow from law material to final products. The government also works on promoting logistics company as securing the expertise for strengthen logistics industry and secure competitiveness. Nevertheless, logistics market have been divided by polarization between small logistics company and major company. Also a labor who work for logistics is being caused by worsened working conditions. That is one of results of the survey. Almost 50% of response are they have not been aware of FTA and have not known to need the FTA. Many respondents said that entering the overseas logistics or a new way like FTA will be difficult to take part in. Therefore I suggest several examples in this paper to encourage a vitalization of small logistics company through the multilateral FTA. Now our country needs to make an effort to maximize connections between multilateral FTA and policy effect by signing FTA with many countries and extending Economic territory. This effect can completely cope with the improvement of economic interests, establishing regional integration strategy and change of global supply chain. Therefore, a small business logistics have to make their competitiveness & a new dealing market in the future.