• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.3 no.3
• /
• pp.203-209
• /
• 2002

The Korean venture industry showed a rapid growth due to various government incentive measures, development in information technology, and explosive growth of the KOSDAQ market. Recently, however, the Korean venture industry has revealed numerous side effects, which seemed to be coming from excessively aggressive government involvement in the industry, and fallen into a deep depression. This phenomenon may imply that the Korean venture industry has been established by the government policy rather than based on the venture capital market, whereas the venture industry in advanced nations has grown up autogenously based on it. This paper analyzes the Korean venture capital market and suggests policy recommendations to revitalize the domestic venture capital market. They include facilitating the supply of funds through limited partnerships and overseas venture capital, extending the direct equity investment, and actively promoting the KOSDAQ market.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.12
• /
• pp.117-127
• /
• 2021

This study was conducted to comprehensively identify factors that potentially influence corporate investment behavior, including micro, macro, and sectoral variables. Furthermore, investment behavior was studied across nations based on their participation in the global value chain (GVC), which was evaluated based on commodities, limited manufacturing, advanced manufacturing, and innovative activities. The study uses the dynamic panel data analysis and Generalized Method of Moment (GMM) estimation for a sample of 800 corporations, with data spanning over 2000-2019. The study result shows that in all types of countries, the coefficient lag indicator of capital expenditure statistically has a significant effect on capital expenditure. Sales growth, exchange rate, and GDP have a significant positive effect on corporate investment growth, while DER has a negative effect. In commodity countries, corporate investment is influenced by sales growth, exchange rate, and FCI. The variables that influence corporate investment in manufacturing countries are the FCI, exchange rate, sales growth, GDP, and DER. In innovative countries, variables that significantly affect capital expenditure are DER, GDP, and Tobin Q. In each type of country, the interaction terms between exchange rate and commodity price are positive and statistically significant.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.1
• /
• pp.257-269
• /
• 2021

Intellectual capital is becoming a crucial factor for a firm's long-term profit and performance in the knowledge-based economy as more firms identify their core competence as invisible assets rather than visible assets (Itami, 1987). The company was encouraged to measure financial and non-financial factors, including the customer perspective groups, the internal business process, learning and growth perspective, then to link all these measurements in a coherent system. This paper seeks to investigate the influence of intellectual capital elements on company performance, as well as the relationship among intellectual capital elements from a cause-effect perspective. Resource-Based View (RBV) considers intellectual capital as resource and capability to sustain competitive advantage on company performance. The partial least squares approach is used to examine listed banks in Indonesia Stock Exchange for year 2017-2019. Results show that human capital directly has positive influences on innovation capital, customer capital, and process capital. Innovation capital has positive, but less significant influence on process capital, which in turn influences customer capital. Human capital and process capital also influence customer capital. Finally, customer capital contributes to performance. This study helps management to identify relevant intellectual capital elements as competitive advantage and their indicators to enhance business performance.

• KDI Journal of Economic Policy
• /
• v.30 no.1
• /
• pp.33-70
• /
• 2008

This paper examines sources of growth of Korea's economy for the period from 1980 to 2005, based on both primal and dual growth accounting methodology employed by Young (1995) and Hsieh (2002). Also, this paper evaluates post-crisis growth performance of Korea, using cross-country comparison of growth accounting results and cross-country regressions. Main results of this paper are as follows. First, the growth slowdown after the crisis has been mainly driven by the slowdown of per worker capital accumulation. By contrast, the estimated TFPG of Korea for the period from 2001 to 2005 seems higher than, or at least roughly comparable to, the estimated TFPG in the pre-crisis period of 1991-1995. In theses respects, there were no substantial differences between the results obtained from primal and dual growth accounting methodology. Second, the cross-country regressions revealthat post-crisis growth slowdown of the Korea's economy can be largely attributed to world growth slowdown (decade effect) and East Asia-specific effects. In particular, it was found that the noticeable decelerationin per worker capital accumulation can be mostly attributed to some unknown factors which commonly affected East Asian countries. Viewed from an international perspective, the lowered post-crisis per worker GDP growth rate, as well as per-worker capital growth, which triggered concerns and debates in varying contexts, still seems respectable. So, the slowdown in capital accumulation is likely to be mainly a story of spectacularly high rate of capital accumulation in the pre-crisis period, not a story of 'weak' investment after the crisis.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.3
• /
• pp.165-170
• /
• 2021

This paper examines the long-run relationship between financial development and economic growth. The effective function of financial development is crucial to promote the economic development of the country. To achieve the objective, this study used Gross Domestic Product as a dependent variable and Credit to The Private Sector, Ratio of the Gross Fixed Capital Formation to GDP, Trade, Consumer Price Index and Labour Force as an independent variable. Augmented Dickey-Fuller test statistic (ADF) to check the stationary. Bounds test for cointegration and Auto-Regressive Distributed Lag Models (ARDL) are used to check cointegrating relationship amongst the variables and causality between financial development and economic growth. Moreover, the Model selection method is Akaike Info Criterion (AIC). This result demonstrates that the labor force and trade hold a significantly negative relationship with economic growth. Nevertheless, inflation, Credit to The Private Sector, and Ratio of the Gross Fixed Capital Formation to GDP show a significantly positive relationship with economic growth. Therefore, there is a statistically significant relationship between Financial Development and Economic growth in Sri Lanka and the Sri Lankan government should reform its trade policies.

• STI Policy Review
• /
• v.7 no.1
• /
• pp.66-86
• /
• 2016

This paper discusses government-backed venture capital as a science, technology and innovation (STI) policy instrument from the Chinese perspective. China aspires to overhaul its growth model by vigorously promoting technological innovation and entrepreneurship. Like many other countries, however, funding gaps constrain new technology ventures in the early stages of venture development. To plug this gap, China attempts to use government-backed venture capital as a policy instrument. Super-size central government-backed VCs were set up and dozens of similar schemes are in operation at local levels. This paper provides a case study of such government-backed venture capital schemes in China. It documents the background conditions explaining the country's need for public venture capital, describes the distinct features of program design in such schemes, and assesses the impact of government-backed venture capital.

• Journal of Korea Technology Innovation Society
• /
• v.10 no.1
• /
• pp.47-72
• /
• 2007

Ideas do not become exhausted, and there are no diminishing returns in the creation of knowledge. Nonetheless, growth ultimately ceases in this simplest model of endogeneous innovation. The reasons are similar to those that are discussed in the context of the neoclassical model of capital accumulation. Even if the resource cost of creating new goods does not rise, the economic return to invention may decline as the number of available products increases. When the rate of return to R&D falls to the level of the discount rate, private agents cease to be willing to defer consumption in order to invest in product development. But, if we treat knowledge capital as a public capital considering of its non-appropriable benefits, economic growth can be sustained in the economy. Romer(1986) has pointed out that growth might be sustainable if the accumulation of knowledge is not subject to long-run diminishing returns. Actually Romer assumed diminishing returns in the production of private knowledge from available resources, but increasing returns in the production of output from labor and total (public and private) knowledge. His condition for the sustainability of long-run growth amounts to an assumption that the diminishing returns in the former activity do not outweigh the increasing returns in the latter. The Johansen(1988) cointegration test method is used for finding long-run equilibrium relationship between R&D input and the product innovation. Test results indicate the existence of cointegrating equation between each pair of regression variables including dependent variable in the knowledge production function. And, the signs of cointegrating vectors are well accord to the prediction of sustainable growth. In the empirical analysis, from all cases of the form for the knowledge production function, we could not reject the null hypothesis that R&D spillover effect is significant($H_{0}:\;{\gamma}=1$). In summary, we showed that considering goodness of fit of regression model, we can see that the empirical evidence is strongly in favor of the character of knowledge as the public knowledge capital. So, we can expect that by product innovation, economic growth can be sustained in the Korean economy.

• Journal of Korea Game Society
• /
• v.9 no.2
• /
• pp.81-93
• /
• 2009

This study aims to investigate human capital in Korea's online game industry (as the representative of IT-based creative services) under the knowledge-based economy paradigm. In recognition of the importance of intellectual capital closely intertwined with human capital and the economic potential of the online game industry, Korean government has begun to show active support. In this context, this study measures the human capital efficiency in online game business by using non-parametric analysis (Data Envelopment Analysis, DEA). Most previous studies (human capital theory, knowledge based economy theory, economic growth theory) have proved that human capital has a very positive effect on sustainable growth of corporate management and wealth of nations. As such, this paper uses the DEA to obtain the efficiency of the human capital (scale, investment, education, compensation). The results of this study will suggest strategic implications on maximizing the human capital in online game corporations and provide a reference frame for government policies.

• Korean small business review
• /
• v.39 no.2
• /
• pp.19-35
• /
• 2017

It is very important for entrepreneurial firms to acquire and exploit the resources necessary for growth. This study examines how venture capital financing affect these entrepreneurial firms' ability to acquire and exploit the resources. Particularly, based on the resource based view, the authors explain the relationship between venture capital financing and entrepreneurial firm's market performance. Empirical results illustrate that venture capital financing positively and significantly affects the market performance of entrepreneurial firms. It is concluded that entrepreneurial firms need to increase the number of alliances with venture capital, which supports various activities after the investment to achieve growth with resource limitation.

• Korea Trade Review
• /
• v.42 no.1
• /
• pp.217-236
• /
• 2017

The purpose of this study is to analyze the effects of IFDI on the regional growth of 16 subregions in Korea during 2000~2014 by applying the System GMM. As a result of the analysis, the IFDI flowed into Korea has showed a positive effect on regional economic growth such as capital formation, job creation, and export expansion. but import has showed a negative effect. and Human capital has showed a positive effect but not statistically significant. meanwhile, IFDI which was flowed in the regions has showed a positive effect on the GRDP of DK regions including Daegu and Kyongbuk, while the GRDP of Metropolitan including Seoul, Incheon and Gyeonggi and BUK regions including Busan, Ulsan, Kyongnam has showed a negative effect. there were observed similar trends in the complementarities between IFDI inflows and human capital. This study has confirmed that IFDI flows into Korea are an important factor for regional growth, but the growth effect on GRDP in the region differs according to regional characteristics. Therefore, this study has suggested that it is urgent to reorganize the industrial structure along with the IFDI attraction strategy suitable for regional characteristics in order to expand the growth effect of IFDI flowed into the regions.