• The Journal of Asian Finance, Economics and Business
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• v.9 no.4
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• pp.419-429
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• 2022

The aim of this research is to examine how globalization affects coffee exports in the producing countries. This research used secondary data obtained from the International Coffee Organization, Pen World Table, World Bank, Food and Agricultural Organization, and KoF Globalization Index to achieve its goals. We used secondary data from 1990 to 2018 from various foreign databases. The research used a two-step system GMM (sys-GMM) to analyze the effect of globalization on coffee export in twenty-four producing countries. We found that export lag, gross domestic product (GDP), exchange rate, and the political globalization index (PGI) positively and significantly impact coffee exports. Meanwhile, coffee exports were unaffected by the level of export prices and the human capital index. Surprisingly, the trade globalization index has a negative impact on coffee exports. This demonstrates the unpreparedness of coffee-producing countries to face tough competition in trade globalization. The political globalization index, the final variable, has a positive impact on exports. With the opening up of world politics, it seems that the environment of democracy in producing countries is increasing. As a result, governments in these countries have adopted a policy of aggressively supporting coffee exports.

• The Korean Journal of Financial Management
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• v.25 no.3
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• pp.33-78
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• 2008

This paper empirically examines whether firms engage in a dynamic adjustment process toward target capital structure and, whether there is a target capital structure or mean reverting using the partial adjustment model while allowing for costly adjustment. Also we investigate the empirical determinants of optimal target capital structure in long term equilibrium. As a result, our empirical model captures at least several important features of capital structure behavior for Korean listed firms. First, Korean firms pursue target capital structure and also there is mean reverting phenomenon. Second, Non-Chaebol and small firm in adjustment speed is faster than Chaebol and large firm. Third, even capital market restricts the adjustment speed interestingly. Fourth, Korean firms have target behavior according to a degree of observed gap. Fifth, Korean firms close about one-fourth of the gap between their actual and target debt ratios within one year and thence targeting behavior explains far more of the observed changes in capital structure than market timing or pecking order considerations. Sixth, capital market is significant in determining optimal capital structure.