• Journal of Korea Trade
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• v.25 no.4
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• pp.146-163
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• 2021

Purpose - This paper examines China's impact on Korea's ICT exports considering the direct competition channel, the production shift channel, and the indirect demand channel at once. This paper also takes China's economic rebalancing into account and discusses whether it makes any differences in the effect of the three channels. Design/methodology - To quantify the effect of the three channels, I constructed a linear panel regression model and estimated it with various estimation methods including the system GMM. China's exports toward the same destination as Korea's exports, Korea's exports toward China, and the third countries' exports toward China respectively reflect the three channels. China's GVC indicators are included as well to evaluate the effect of further China's economic rebalancing. Since the present paper has a greater interest in the effect of China rather than the determinant of bilateral trade, a (fixed effect) panel model becomes more appropriate than the gravity model because timeinvariant variables in the gravity model, such as the distance and the language, are eliminated during the estimation process. Findings - The estimation results indicate that Chinese ICT exports are complementary to Korea's ICT exports in general. However, when markets are considered in subgroups, China's ICT exports could have a negative effect in the long run, especially for SITC75 and SITC76 markets, implying a possible competitive threat of China. The production shift effect turns significant during China's economic rebalancing in the markets for the advanced economies and the SITC76 product. China's indirect demand channel is also in effect significantly for the advanced economy and SITC75 commodities during China's economic rebalancing periods. In addition, this paper shows that China's transition toward upstream in the global value chain could have a positive impact on Korea's ICT exports, especially at the Asian market. Originality/value - The contribution of this paper is threefold. First, it focuses on the ICT industry for which Korea increasingly depends on China and China becomes a global hub of the GVC. Second, this paper quantitatively studies three channels in a model in contrast to the literature which mostly examines those channels separately and pays less attention to the GVC aspect. Third, by utilizing relatively recent data from the period of 2001-2017, this paper discusses whether China's economic rebalancing affects the three channels.

• Journal of Technology Innovation
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• v.28 no.3
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• pp.55-76
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• 2020

The traditional occupational boundaries of human resources in science and technology (S&T) have quickly blurred in Korea. On the one hand, the knowledge-based economy has emerged and S&T proliferated beyond conventional areas, leading scientists and engineers to advance into various convergence fields. On the other hand, Korea's labor market is characterized by a higher percentage of highly-educated human resources and a relatively smaller number of high-quality jobs. As a result, the highly educated in S&T have flowed over the traditional careers into non-S&T careers. Focusing on doctorates in S&T, this paper analyzes changes in their career patterns and identifies main determinants. Specifically, jobs are categorized into traditional STEM occupations and the others in order to identify fluctuations in their share and to analyze factors affecting such changes. The analyses are based on data from the 'Survey on Careers and Mobility of Doctorate Holders 2012' conducted by the Science and Technology Policy Institute. The results exhibit marked changes in the occupational composition of doctorates in S&T. Occupational diversification has been proceeded faster in natural sciences, the private sector, and the younger generation than in engineering, the public sector, and the older generation.

• Asia-Pacific Journal of Business
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• v.11 no.4
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• pp.225-241
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• 2020

Purpose - The purpose of this study was to examine the effect of the ratio of outside directors, especially the ratio of outside directors according to their tenure, on firm value. Design/methodology/approach - This study collected total 3,861 firm-year data about companies listed KRX KOSPI market in Korea. The Pooled Ordinary Least Square Model and Panel Fixed Effects Model were hired in order to analyze the data. Findings - First, it was found that the ratio of outside directors for total sample had no significant effect on firm value, and the estimation coefficient of dummy variable for the average tenure less than 3 years had a significant positive(+) effect on firm value. Second, the ratio of outside directors corresponding to the tenure of less than 3 years had a significant positive(+) effect on the firm value. On the contrary, the ratio of outside directors corresponding to the tenure of 3 years or more had a significant negative(-) effect on firm value. Third, the ratio of outside directors corresponding to the tenure for more than 6 years did not show any significant influence on firm value. Research implications or Originality - First, if other matters are not additionally considered, keeping the tenure of outside directors shortly on average could help to increase firm value. Second, in the case of firms facing the decision to reappoint outside directors for the first time, it is highly likely that the firm value would decrease on average, so careful decisionmaking considering various aspects is required. However, this study does not take into account the legal standards for the appointment of outside directors, diversity of outside directors, and the actual independence of outside directors according to other criteria in the analysis. Therefore, if these factors are considered, there is a possibility that the empirical analysis results of this study may show different patterns.

• Journal of the Korean Applied Science and Technology
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• v.38 no.2
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• pp.618-627
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• 2021

Functional cosmetics are products that help emphasize certain functions such as skin whitening, wrinkle reduction and UV protection. Functional cosmetic items have expanded since 2017. Korea's functional cosmetics industry has focused on skin whitening, wrinkle reduction, UV protection, and high-performance items including medical cosmetics that are in the research and development stage. France leads the international export performance rankings followed by the United states and Germany. France's cosmetic industry is renowned for emphasizing mechanism driven functional cosmetics in bio-industrial and functional materials, while the United states cosmetic industry is in high demand for luxury premium products. The German cosmetic industry is showing growing strength in bio high tech functional cosmetics. For the Korean cosmetic industry to challenge the top 3, it will also have to develop new material of various functional cosmetics that can be applied to emerging industries, and develop a variety of industry equipment in an environment where politics and economy are backed by more focus on research.

• Asia-Pacific Journal of Business
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• v.12 no.3
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• pp.175-192
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• 2021

Purpose - In this study, we investigate the effects of government environmental subsidies and the globalization Chinese firms on their profitability using return on assets (ROA). Design/methodology/approach - In this study, a merged data including accounting, financial market, subsidization of the Chinese governments, local and the central, and export activities of 19,563 year-firms, for those listed on Shanghai Stock and Shenzhen Stock Exchange for 11 years from 2008 to 2018 is used. We collect subsidy data from RESSET database and financial data from CSMAR database. Then, we empirically test the test hypotheses using fixed effects models (FEM) separately and in a simultaneous equation model (SEM). Findings - Firstly, the globalization of Chinese firms has a negative impact on their profitability for some years after the year. Secondly, environmental subsidies just like other subsidies have ameliorating effects on financial performance for global firms. Such effects have lasted some years. Thirdly, environmental investments have a mostly negative impact on short- and long-term profitability for global firms. Lastly, the government's environmental subsidies in China have a positive effect on their profitability for both global and domestic firms. Research implications or Originality - We can infer that environmental investments with the help of the governmental subsidies can help Chinese firms deploy global strategies to expand markets to surpass competitors in the long run despite worsening profitability in global markets in the short run.

• Journal of Korea Trade
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• v.26 no.2
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• pp.21-44
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• 2022

Purpose - This study quantifies sources of trade balance dynamics over the business cycle in Korea. Specifically, we quantify the relative importance of domestic and foreign factors on trade balance dynamics using a small open economy real business cycle (SOE-RBC) model and provide policy implications for stabilization policies. Aggregate productivity and interest rate spreads are considered domestic factors affecting the trade balance. A world interest rate (the U.S. interest rate) is considered a foreign factor. Design/methodology - Following Neumeyer and Perri (2005), we build the SOE-RBC model with three types of shocks: aggregate productivity, interest rate spread, and world interest shocks. The model is estimated by the generalized method of moments (GMM) using relevant business cycle statistics. The estimated model is used for quantifying the relative importance of domestic and foreign factors on trade balance dynamics in Korea. Findings - Our main findings can be summarized as follows: 85.64% of the trade balance fluctuations in Korea are explained by domestic factors, the remaining 14.35% by foreign factors. Particularly, trade balance dynamics are mostly accounted for by the change in aggregate productivity shocks (85.58%). World interest rate shocks considerably explain trade balance (14.35%), whereas the role of interest rate spread shocks that represent domestic risks is limited (0.08%). Although aggregate productivity is key in explaining trade balance dynamics in Korea, interest rates still have an essential role. This is because aggregate productivity changes induce interest rate spread variations and, thus, the trade balance significantly. The results suggest that government policies mitigating fluctuations in aggregate productivity would be effective for stabilization policies in Korea by reducing the trade balance volatility. Originality/value - Existing studies on the emerging market business cycle examine mostly Latin American countries, and the main object of the studies is the volatility of consumption rather than trade balance dynamics. Conversely, our study examines Korea rather than Latin American countries. Additionally, we examine sources of trade balance dynamics, which are relatively more important in Korea, rather than those of the volatility of consumption. Hence, we estimate the model to explicitly match moments related to trade balance in the data.

• Asia-Pacific Journal of Business
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• v.12 no.3
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• pp.251-269
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• 2021

Purpose & methodology - This study is to answer the following three questions, analyzing data on Top 50 Indian Billionaires, Top 50 Indian companies and Top 50 Indian start-ups. The first is whether or not traiditonal merchant caste like Vaisya's ability of creating wealth declined as some studies argue. The second is whether non-merchant caste like Brahmin, Kshatriya, OBC, Dalit, emerged as an India's new business elite. The third is whether the results of top 50 Indian companies and top 50 start-ups' analyses have similarities with that of top 50 Indian Billionaires analysis. Findings - The result is firstly, the ability of creating wealth of businessmen from the merchant caste was still overwhelming. Secondly, the big businessmen' rising from non-merchant castes as a new business elite was extremely rare. Thirdly, according to the analysis of top 50 Indian start-ups, the percentage of Vaisya has significantly declined while the the percentage of upper castes like Brahmin has noticeably increased. Fourthly, no evidence was found that businessmen from the lower castes like OBC or Dalit were increasing the expanding business influence. Research implications - The Studies mean that in big-sized Indian companies, the power of traditional merchant caste remains the same as before and is even reinforcing, while in small start-ups, Vaisya's power is considerably decreasing, and the upper castes like Brahmin who are highly educated are noticeably increasing.

• Asia-Pacific Journal of Business
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• v.12 no.2
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• pp.115-129
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• 2021

Purpose - This study aimed to clarify the effects of tax investigation probability on accounting transparency in KOSDAQ firms by using financial statement. In particular, it was analyzed whether the characteristics of a firm's listed market have a discriminatory effect on the relationship between the tax investigation selection rate (or detection rate) and earnings management. Design/methodology/approach - This paper examines analyzed the effect of tax investigation of the National Tax Service on the earnings management. The sample includes 9,603 firms listed on KOSPI and KOSDAQ from 2011 to 2018, all of which are manufacturing firms. This study conducted correlation and multiple regression analyses to verify the relationship between tax investigation probability and earnings management. The possibility of a tax investigation is the selection rate and the detection rate, and the profit adjustment was estimated at discretionary amount. Findings - As a result of empirical analysis, both firms listed on KOSPI and KOSDAQ markets showed that the higher the tax investigation rates, the more significant the possibility of reducing the earnings management of discretionary accruals. Additionally it was found that in KOSDAQ markets firms, the tax investigation detection rates had a signigicant nagative effect on discretionary accruals. Research implications or Originality - It can be interpreted that firms with a high rates of receiving a tax investigation decrease earnings management consideration of expenses such as additional tax amount due to the tax audit or a decline in corporate image.

• Journal of Korea Port Economic Association
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• v.39 no.1
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• pp.35-46
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• 2023

This study was conducted to evaluating the willingness to pay for marine leisure ships through a contingent valuation method that can estimate the value of non-market economy. The questionnaire adopted a double-bound dichotomous choice Model and the variables for evaluating the amount of willingness to pay consisted of demographic variables and respondent behavior variables, and related information verified through previous studies. As a result of collecting and analyzing a total of 309 questionnaires, the amount of willingness to pay for marine leisure ships was estimated to be 25,510 won. In addition, significant variables affecting the amount of willingness to pay were the experience of visiting the island, satisfaction with the introduction of new maritime transportation, and intention to revisit the island. Through this study, it can be used as a basis for evaluating the economic value of new maritime transportation by estimating the willingness to pay for marine leisure ships using the contingent valuation method.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.1028-1035
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• 2005

Traditional Industries were planning the major role for Taiwan's economy. However, we need to face the competition from developing countries. Moving manufacturing department to other low salary countries, such as China, can only temporarily release some limited pressure. The final and complete solutions are to equip on R&D, refine techniques, improve management capabilities, upgrade business, and reform physique. Currently there are some ERP systems on the market; however, they are designed for common purpose and difficult to introduce into industry. The expensive price is another factor to make them be popular. In this research we will Object Oriented, Visual Modeling, ER Model and Windows Environment to develop an Integrated Management System for Sports Requisites Industries (IMSSRI). We will integrate all information from all departments such as development, business, material administration, manufacture, shipping, and financial. When development people construct the all modules, components, cutting molds, materials and accessories, IMSSRI will calculate all needed materials and cost for each product. This cost will be used for quotation to report to our customers. When customers confirm the order, system will transfer all necessary materials into Material Administration System. IMSSRI can generate manufacturing forms and material raw lists for manufacture department. All related information such as stocking, returning goods, material requesting, and material returning can be integrated so we can control all details of the whole enterprise. Through the help of this system, we hope we can save man-power, reduce human mistakes, raise management capabilities for tradition manufacturing industries and create another possibility of eternal operating for Taiwan's Industries.