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Investment and Business Cycles: Focusing on Firms’ Capital Adjustment Costs
Full text linkThis paper empirically verifies that the types of capital adjustment costs serve as an important mechanism in relation to investment decisionmaking after confirming that the investment dispersion of Korean firms is pro-cyclical and can affect business cycles. Specifically, it is found through empirical methods using corporate financial data that capital adjustment costs generally assumed to take a quadratic form in macroeconomics are asymmetric and irreversible in the Korean economy. In particular, capital adjustment costs are empirically proven to cause investment dispersion to expand given that the substitution effect of the marginal value to the marginal cost for one unit of investment in the inter-temporal investment decision is affected by that cost with regard to the resale of owned equipment assets, as opposed to new investments in equipment assets. We ultimately show, albeit indirectly, that investment dispersion can affect business cycles as capital adjustment costs influences investment decisions. What is implied is that the capital adjustment cost is not merely an exogenously deep parameter that fits the dynamics of business cycles in a macroeconomic model but could instead be a policy variable that can be endogenized through government policies
Growth, Emission, and Mitigation Aid in Developing Countries
Full text linkThis paper aims to examine the relationship between growth and pollution, especially in developing countries that struggle with adverse effects caused by the climate crisis. By using the Environmental Kuznets Curve (EKC) framework, the effect of GDP on four air pollutants was investigated with a panel data of 91 countries for 10 years. Only carbon dioxide without control variables showed EKC and climate change mitigation aid was significantly negative to only greenhouse gas emission
How Customers Perceive Virtual Mirror Technology in the 4th Industrial Revolution Environment
No full textPurpose: The purpose of this study is to explore how customers perceive virtual mirror technology in the 4th industrial revolution environment. In particular, this study investigated how virtual mirror technology affects customer satisfaction and intention to use that are rarely examined in previous studies. Research questions include how proposed variables including sensory stimulation, enjoyment, product quality, telepresence, interactivity, and immersion affect satisfaction and intention to use and how satisfaction affects intention to use. Research design, data and methodology: This study conducted an online survey and applied factor and regression analyses to test hypotheses. Results: The results of this study found that effects of sensory stimulation, telepresence, and immersion on satisfaction were significant, while effects of enjoyment, product quality, and immersion on intention to use were significant. Therefore, variables affecting satisfaction and intention to use were different, while effects of immersion were significant both on satisfaction and intention to use. Conclusions: This study concluded that the role of virtual mirror technology helps customers determine product quality and increase satisfaction level, while it also helps customers enjoy shopping and increase intent to use the service. The results of this study provide how to foster better relationship with customers by applying advanced technologies.2
focusing on the case of Korea's abnormal precipitation in the summer of 2020
Full text linkThesis(Master) -- KDI School: Master of Public Management, 2022Climate change and urbanization are accelerating the seriousness of urban flooding. Urban flooding is caused by a combination of urban characteristics, drainage systems, and land-use status. Preventive measures are important in terms of the fact that disasters in urban areas cause enormous human and property damages, and that the cost of restoration exceeds the amount of damage.
This paper aims to contribute to improving city’s responsiveness to urban floods by investigating major causes of and suggesting improvement measures to urban flooding. It discusses a framework that highlights the three stages of disaster management (i.e., pre-, during, and post-disaster), including each stage’s main activities required and the importance of feedback systems across the stages. Using this framework, a case of urban flooding that took place in the summer of 2020 in Korea, which was recorded the longest rainy season in the country, was analyzed. Through the analysis, two main problems were identified:
First, the capacity of urban flood defense facilities may be fundamentally insufficient due to abnormal precipitation exceeding expectations. Each time a rainfall record is updated, a flexible design standard should be prepared that comprehensively considers the climate, topography, and land-use status rather than unconditionally raising the design standard. Second, the response system to urban floods that occur repeatedly every year is unsatisfactory. Starting with the linkage of information distributed among each institution, the information system should be used as a means, not a purpose.1. Introduction
2. Current status and the causes of urban flooding
3. Research design
4. The case of urban flooding in the summer of 2020 in Korea
5. Proposals for improvement
6. ConclusionmasterpublishedHyo-Sung KI
a study of Mongolian strategy and policy toward innovation
Full text linkThesis(Master) -- KDI School: Master of Public Policy, 2022“Mongolia is landlocked but not mindlocked.” The wise words of economist and columnist Jargal De Facto have immensely reflected the current situation of technological innovation and entrepreneurship development in Mongolia. Mongolia is the 135th largest economy in the world with a GDP of 14.233 billion dollars. As for the nation with a unique history and a nomadic lifestyle, Mongolia has traditionally been reliant on the two major sectors for all its state existence which are agriculture and animal husbandry. Shortly after the declaration of democracy, several abundant natural resource deposits were found in the southern part of Mongolia known as the “Gobi Area”, thus mining immediately became one of the top priority sectors for the Mongolian economy. At present, heavy industry including the mining sector is the major sector that contributes to GDP accounts for 38.2%, secondly service sector, retail trade 15%, and followed by agriculture 12.06%. However, more than half percent of the entire population is a vibrant youth aged around 18-35 years having a different and brighter vision to diversify Mongolia’s economy. To reduce heavy dependence on the volatile mineral market and empower to nurture an effective innovation ecosystem to sustain employment opportunities, competitiveness, and generate innovation-oriented startups. This paper attempted to describe the current overview of the Mongolian Innovation Ecosystem by reviewing relevant policy documents, laws and regulations, articles, reports, and interviewing relevant officials of the ecosystem component.CHAPTER 1. INTRODUCTION
CHAPTER 2. LITERATURE REVIEW
CHAPTER 3. MONGOLIA'S STUDY TO INNOVATION ECOSYSTEM
CHAPTER 4. RESEARCH ANALYSIS
CHAPTER 5. CONCLUSION AND RECOMMENDATION
CHAPTER 6. REFERENCESmasterpublishedOyu-erdene BATZEVE
Who Adopts Industry 4.0 Technology?
No full textWhile there are high expectations for the potential of Industry 4.0, we know little about how widely firms use related technologies. This study aims to describe the current status of Industry 4.0 technology adoption and identify the determinants. Compared to most existing studies that focus on specific industries or limited sets of firms, we present more comprehensive adoption patterns across different industries and firms by examining a rich dataset of 9,129 firms from the 2015-2018 Survey of Business Activities conducted by Statistics Korea. Using the Technology-Organization-Environment framework, we also analyze the determinants of the firm's technology adoption. Our main results are 1) ICT service, finance, and ICT manufacturing are early adopters of Industry 4.0 technologies; 2) while cloud and big data show relatively high adoption rates (4.52% and 4.36%), AI is used by only a small share of firms (2.74%); 3) firms with greater technological readiness and greater size are more likely to adopt Industry 4.0; and 4) environmental factors, such as spillovers, appear to have significant impacts on firms’ technology adoption. Our findings allow us to identify the characteristics of early adopters and consider the potential consequences of the uneven adoption of Industry 4.0.2
The Impact of Uncertainty Shocks: Evidence from Geopolitical Swings on the Korean Peninsula*
No full textUsing a novel set of instrumental variables in a structural VAR framework, we investigate the economic impact of uncertainty shocks from geopolitical swings on the Korean Peninsula over 2003–17. We construct robust instrumental variables for these shocks based on high-frequency changes in financial asset returns and their volatilities around the geopolitical events. The empirical results suggest that heightened geopolitical uncertainty has negative impacts on macroeconomic outcomes in South Korea. We provide evidence that financial and capital markets play a key role in the transmission of geopolitical uncertainty shocks.1
Poverty at Higher Frequency
No full textPoverty is typically measured as insufficient yearly income or consumption. In practice, however, poverty is marked by seasonality, economic instability, and illiquidity across months. To capture within-year variability, we extend traditional poverty measures to include a temporal dimension. Using panel data from rural India, we show how conventional poverty measures can distort understandings of poverty: exposure to poverty is wider and more common than typically measured, and poverty entry and exit are not sharp transitions. Accounting for within-year variability improves predictions of anthropometrics, and targeting transfers to challenging periods can reduce poverty most effectively by compensating for imperfect consumption smoothing
An Empirical analysis on Japan's industrial hollowing out
Full text linkThesis(Master) -- KDI School: Master of Public Policy, 2022The purpose of this study is to investigate the role of domestic factors in hollowing out of Japan''s manufacturing industry. During the three lost decades, Japan''s manufacturing, an indicator of its economic health, suffered from the deterioration of international competitiveness. The rise in competition with emerging countries and domestic production costs forced Japanese manufacturers to operate overseas, hurting manufacturing value-added and employment. Among internal factors that caused Japan''s industrial hollowing out, several episodes of yen appreciations have fostered not only economic recessions brought on by weakening exports but the deindustrialization of Japanese manufacturing since the late 1980s. This paper exploits aggregate time-series data from 1960 to 2021 to verify the increase in outward FDI and value of yen, a collapse of export-led growth along with Chinese economic expansion, and TFP growth has prompted deindustrialization in Japan. The paper also investigates the effect of sectoral exports, FDI outflows, and yen exchange rate fluctuations on the manufacturing share of GDP, using industry-specific data from 1970 to 2021.1 Introduction
2 Literature review
3 Research method
4 ConclusionmasterpublishedSaemee SHI
Analysis on the factors related to corporate expenditure on preventing industrial accidents
Full text linkThesis(Master) -- KDI School: Master of Public Policy, 2022Public demand for occupational health and safety has increased in South Korea as suggested by a number of legislations that were amended or enacted recently (i.e. amendment to the Korea Occupational Safety and Health Act in 2020, Serious Accidents Punishment Act in 2022). In light of this, the study aims to investigate different factors that could impact firms’ investment toward occupational safety and health. Fixed effect regression using panel survey data from 2015-2019 by South Korea’s Workplace Panel Survey demonstrated that only the number of prior year accidents had a positive and statistically significant association with a firm’s safety investment. Other factors including firm size, firm loss due to industrial accidents, and the fraction of temporary workers showed no statistically significant association with a firm’s investment toward occupational health and safety. Although this study had merit for investigating different factors behind firms’ behavior toward safety investment, further studies may reveal more of this nature especially during some years after the enactment of Serious Accidents Punishment ActI. Introduction
II. Literature Review
III. Results & Discussion
IV. Conclusion
V. ReferencemasterpublishedSunguk CHO