• Korean Journal of Organic Agriculture
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• v.32 no.2
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• pp.137-159
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• 2024

Major crop prices have been raised significantly in recent years by COVID-19, the war in Ukraine, and weather-induced reductions in South American soybean production by unfavoured weather in 2022. Rising international crop prices are likely to destabilize food security in South Korea, which is highly dependent on foreign crops. This study analyzed the impact of soybean import price changes on the domestic soybean market and soybean food self-sufficiency rate from 2024 to 2029 using a dynamic partial equilibrium model. According to the scenario analysis results, if the import prices rise by 10% compared to the baseline, the soybean food self-sufficiency rate would increase by 1.33% in 2024, but it is expected to decrease to -0.58% in 2029 due to the continuous decrease in production. The results of this study are expected to be used as valuable information for policy authorities in establishing policies related to improving food self-sufficiency.

• The Journal of Fisheries Business Administration
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• v.47 no.4
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• pp.65-75
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• 2016

The purpose of this study was to analyze the production and marketing control effects of aqua-cultured flounder required for stable income growth of aqua-cultured household. We analyzed the supply and demand structure of cultured flounder using the partial equilibrium model approach. And we estimated the optimal yield of cultured flounder and analyzed the effect of marketing control through constructed model. The main results of this study are summarized as follows. First, the fitness and predictive power of the estimated model showed that the RMSPE and MAPE values were less than 5% and Theil's inequality coefficient was very close to 0 rather than 1. It was evaluated that the prediction ability of the aqua-cultured flounder supply and demand model by dynamic simulation was excellent. Second, dynamic simulation based on policy simulation was conducted to analyze the price increase effect of production and shipment control of cultured flounder. As a result, if the annual production volume is reduced by 1%, 5%, and 10% among 32,852~37,520 tons, it is analyzed that the price increase effect is from 1.2% to 12.5%. Finally, this study suggests that the production and marketing control can increase the price of aqua-cultured flounder in the market. In this paper, we propose a policy implementation of the total supply system instead of conclusions.

• Korean Journal of Organic Agriculture
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• v.28 no.1
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• pp.31-57
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• 2020

Korea-US FTA amendment became effective January 1, 2019 through several trade negotiations between the two countries. These amendments did not include changes in the agricultural sector. However, given the policy direction of the Trump administration, it is difficult to be certain that the existing Korea-US FTA on the agricultural sector will remain unchanged. This study examines the potential impact of changes in the US beef import tariff rates under the Korea-US FTA, which is progressively eliminated until 2026 using a dynamic partial equilibrium model. The modelling system is simulated with 100% decreases of tariff rates over 2020~2026 period and then compared to the baseline which is developed based on the current Korea-US FTA tariff rates. According to the scenario analyses results, 100% decreases of US beef tariff rate lowered Korean beef cattle production value up to 4.23%. Looking at this change in terms of absolute value rather than percentage, the total production value over 2020~2026 is expected to decrease by 815 billion won compared to Baseline. This reduction in production value in dynamic analysis is 67 billion won higher than the comparative static analysis.

• Korean Journal of Agricultural Science
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• v.48 no.4
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• pp.815-829
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• 2021

The purpose of this study is to construct a flatfish outlook model that is consistent with the "Fisheries outlook" monthly publication of the fisheries outlook center of the Korea Maritime Institute (KMI). In particular, it was designed as a partial equilibrium model limited to flatfish items, but a model was constructed with a dynamic ecological equation model (DEEM) system, considering biological breeding and shipping times. Due to limited amounts of monthly data, the market equilibrium price was calculated using a recursive model method as the inverse demand. The main research results and implications are as follows. As a result of estimating young fish inventory levels, the coefficient of the young fish inventory in the previous period was estimated to be 0.03, which was not statistically significant. Because there is distinct seasonality, when estimating the breeding outcomes, the elasticity of breeding in the previous period was found to exceed 0.7, and it increased more as the weight of the fish increased, in addition, the shipment coefficient gradually increased as the weight increased, which means that as the fish weight increased, the shipment compared to the breeding volume increased. When estimating shipments, the elasticity of breeding in previous period was estimated to respond elastically as the weight increases. The price flexibility coefficient of the total supply was inelastically estimated to be -0.19. Finally, according to a model predictive power test, the Theil U1 was estimated to be very low for all of the predictors, indicating excellent predictive power.

• The Journal of Industrial Distribution & Business
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• v.11 no.3
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• pp.39-50
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• 2020

Purpose: Agriculture, which is heavily influenced by climate conditions, is one of the industries most affected by climate change. In this respect, various studies on the impact of climate change on the agricultural market have been conducted. Since climate change is a long-term phenomenon for more than a decade, long-term projections of agricultural prices as well as climate variables are needed to properly analyze the impact of climate change on the agricultural market. However, these long-term price projections are often major constraints on studies of climate changes. The purpose of this study is to analyze the impacts of climate changes on the Korean onion market using ex-post analysis approach in order to avoid the difficulties of long-term price projections. Research design, data and methodology: This study develops an annual dynamic partial equilibrium model of Korean onion market. The behavioral equations of the model were estimated by OLS based on the annual data from 1988 to 2018. The modelling system is first simulated to have actual onion market conditions from 2014 to 2018 as a baseline and then compared it to the scenario assuming the climatic conditions under RCP8.5 over the same period. Scenario analyses were simulated by both comparative static and dynamic approach to evaluate the differences between the two approaches. Results: According to the empirical results, if the climate conditions under RCP8.5 were applied from 2014 to 2018, the yield of onion would increase by about 4%, and the price of onion would decrease from 3.7% to 17.4%. In addition, the average price fluctuation rate over the five years under RCP8.5 climate conditions is 56%, which is more volatile than 46% under actual climate conditions. Empirical results also show that the price decreases have been alleviated in dynamic model compared with comparative static model. Conclusions: Empirical results show that climate change is expected to increase onion yields and reduce onion prices. Therefore, the appropriate countermeasures against climate change in Korean onion market should be found in the stabilization of supply and demand for price stabilization rather than technical aspects such as the development of new varieties to increase productivity.

• Korean Journal of Organic Agriculture
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• v.28 no.2
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• pp.171-188
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• 2020

The Coronavirus disease (COVID-19), first identified in China in December 2019, has widely spread worldwide and is an ongoing pandemic. It is expected that the ripple effect of COVID-19 on the global economy including the agricultural sector will increase substantially if not properly controlled shortly. This study examines the potential impact of COVID-19 on the Korean beef cattle sector and farm labor demand for Korean beef cattle using a dynamic partial equilibrium model. The agricultural production value and farm labor demand for Korean beef cattle in the scenario assuming pessimistic GDP growth rate (-1.2% in 2020) with no direct supply shocks fell by up to 4.00% and 0.67%, respectively, compared to the baseline which represents the future without COVID-19 outbreak. On the other hand, the agricultural production value and farm labor demand for Korean beef cattle in the scenario assuming both pessimistic GDP growth rate and supply shocks (-12.7% beef imports and + 2.4% feed cost in 2020) increased by up to 12.08% and 1.99%, respectively, compared to the baseline.

• Korean Journal of Organic Agriculture
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• v.30 no.2
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• pp.151-170
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• 2022

The demand for commercial kimchi has increased continuously for the past 20 years due to the increase in eating out demand. Although Korean kimchi industry has expanded significantly, it is still small and a large portion of domestic demand is dependent on Chinese kimchi. Chinese kimchi imports has markedly increased over the last 20 years. However, kimchi imports from China in 2021 significantly reduced due to the recently released video showing a naked man making Kimchi. Korean government has decided to apply HACCP to all imported Kimchi from October 2021 in order to improve the safety of imported kimchi. This study analyzed the effect of changes in the amount of kimchi imports due to the introduction of HACCP on the kimchi industry by using a dynamic partial equilibrium model. According to the analysis result, if imports decreased by 20% compared to the Baseline, domestic kimchi production increased from 1.8% to a maximum of 4.8%, but kimchi consumption decreased from 3.1% to 5.2%. In particular, consumption away from home decreased from 3.3% to 5.7%. It is expected that the results of this study would be used as useful data in the decision-making process of market participants and policy makers related to the kimchi industry.

• Korean Journal of Organic Agriculture
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• v.31 no.3
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• pp.211-228
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• 2023

The Korea-US FTA was one of the most controversial FTAs Korea has ever signed and was expected to have a significant effect on the agriculture sector, especially the livestock industry. This study ex-post analyzed the impact of the Korea-US FTA on the Korean beef industry including the Jeonnam province using a dynamic partial equilibrium model. According to the scenario analysis results, if there was no Korea-US FTA, the beef imports would be reduced to as low as 0.24% to 4.19% compared to the Baseline applying existing Korea-US FTA beef tariff rates over the 2012 to 2022 periods. In addition, if there was no Korea-US FTA, the agricultural product value of Jeonnam and national Korean beef cattle would increase from 0.25% to 7.37% and 0.25% to 7.33%, respectively, compared to the Baseline. The results of the analysis are expected to be used as important information for policy establishment in preparation for CPTPP and supplementation of current FTA policies regarding Korean beef cattle not only for the central government but also Jeonnam province.

• The Journal of Fisheries Business Administration
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• v.51 no.2
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• pp.51-69
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• 2020

The purpose of this study is to construct an outlook model that is consistent with the "Fisheries Outlook" monthly published by the Fisheries Outlook Center of the Korea Maritime Institute(KMI). In particular, it was designed as a partial equilibrium model limited to abalone items, but a model was constructed with a dynamic ecological equation model(DEEM) system taking into account biological breeding and shipping time. The results of this study are significant in that they can be used as basic data for model development of various items in the future. In this study, due to the limitation of monthly data, the market equilibrium price was calculated by using the recursive model construction method to be calculated directly as an inverse demand. A model was built in the form of a structural equation model that can explain economic causality rather than a conventional time series analysis model. The research results and implications are as follows. As a result of the estimation of the amount of young seashells planting, it was estimated that the coefficient of the amount of young seashells planting from the previous year was estimated to be 0.82 so that there was no significant difference in the amount of young seashells planting this year and last year. It is also meant to be nurtured for a long time after aquaculture license and limited aquaculture area(edge style) and implantation. The economic factor, the coefficient of price from last year was estimated at 0.47. In the case of breeding quantity, it was estimated that the longer the breeding period, the larger the coefficient of breeding quantity in the previous period. It was analyzed that the impact of shipments on the breeding volume increased. In the case of shipments, the coefficient of production price was estimated unelastically. As the period of rearing increased, the estimation coefficient decreased. Such result indicates that the expected price, which is an economic factor variable and that had less influence on the intention to shipments. In addition, the elasticity of the breeding quantity was estimated more unelastically as the breeding period increased. This is also correlated with the relative coefficient size of the expected price. The abalone supply and demand forecast model developed in this study is significant in that it reduces the prediction error than the existing model using the ecological equation modeling system and the economic causal model. However, there are limitations in establishing a system of simultaneous equations that can be linked to production and consumption between industries and items. This is left as a future research project.

• Journal of the Korean Society for Railway
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• v.5 no.1
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• pp.10-17
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• 2002

In this study, we have developed the static and dynamic simulation program of a high speed current collection system. The catenary wire is modeled to discrete masses connected by massless strings and the pantograph is replaced with 3 d.o.f equivalent models that are composed of masses, springs and dampers. We derived partial differential equations of motion from the equivalent model and developed the simulation program. Then, we calculated the static equilibrium state of the overhead catenary and the dynamic behaviors of the high speed current collection system. The analysis results were compared with the results of GASENDO software developed at RTRI in Japan.