This paper describes the correlations between inequality and the growth rates in cross-country data. Using non-parametric methods, we show that the growth rate is an inverted U-shaped function of net changes in inequality: Changes in inequality (in any direction) are associated with reduced growth in the next period. The estimated relationship is robust to variations in control variables and estimation methods. This inverted U-curve is consistent with a simple political economy model, although, as we point out, efforts to interpret this model causally run into difficult identification problems. We show that this non-linearity is sufficient to explain why previous estimates of the relationship between the level of inequality and growth are so different from one another.

Inequality and Growth: What Can the Data Say?

Technological collaboration in industry: strategy, policy and internationalization in innovation

Until recently, Cyprus and Malta’s economies are mainly driven by tourism Also, the two countries are consistently referred to as the frontline states based on the age-long refugee crisis caused by African migrants during the Middle East civil unrest On this regard, the Grouped mean approaches of the Fully-modified least square (FMOLS) and Dynamic least square (DOLS) estimators are employed to investigate the long-run relationship between the housing prices and international tourist arrivals, and the number of refugees Using the quarterly data spanning 2005Q1 to 2016Q4, the study finds an elasticity of at most 037 and 078 of the house price with respect to the number of refugees and international tourist arrival, respectively It further implies that the housing price and the number of refugees (“refugeeism”) are positively related; tourism was observed to be negatively related to the housing price Also, there exists a significant Granger causality from the number of refugees to the house price without feedback but no evidence of Granger causality is found between tourism and the house price The study proffers policies that effectively avert disservice and minimize challenges associated with growth in tourism activities and refugee crisis associated with the region

The Dynamics of Tourism—Refugeeism on House Prices in Cyprus and Malta

This paper estimates house price determinants in the Korean housing market, focusing on Seoul and employing the method of a quantile regression of a hedonic price model. With this quantile regression approach, how implicit prices of housing characteristics vary in each quantile of house prices is investigated. The data sample for this paper comprises court auction data collected from district courts of Seoul between 2006 and 2012. The hedonic variables employed in this research include building age, size, floor height, and floor level, proximity to metro station and high school and scenic view. As dependent variables, house prices in three sub-regions of Seoul are considered. Those prices between before and after the 2008 financial crisis are compared to determine the impact of the crisis. The empirical analysis finds that school proximity has the largest effect on the prices among dummy variables and that the level of the effect is larger in lower quantiles (lower-priced houses). By contrast, scenic view has a larger effect in higher quantiles (higher-priced houses), while its effect is statistically insignificant in lower quantiles. The effects of both school proximity and scenic view are also found to decrease in magnitude after the crisis.

Determinants of House Prices in Seoul: Quantile Regression Approach

Trade-off relationship between public transportation accessibility and household economy: Analysis of subway access values by housing size

This paper estimates house price determinants in the Korean housing market, focusing on Seoul and employing the method of a quantile regression of a hedonic price model. With this quantile regression approach, how implicit prices of housing characteristics vary in each quantile of house prices is investigated. The data sample for this paper comprises court auction data collected from district courts of Seoul between 2006 and 2012. The hedonic variables employed in this research include building age, size, floor height, and floor level, proximity to metro station and high school and scenic view. As dependent variables, house prices in three sub-regions of Seoul are considered. Those prices between before and after the 2008 financial crisis are compared to determine the impact of the crisis. The empirical analysis finds that school proximity has the largest effect on the prices among dummy variables and that the level of the effect is larger in lower quantiles (lower-priced houses). By contrast, scenic view...

Determinants of house prices in Seoul: A quantile regression approach

This study empirically analyses how population ageing affects house price using sample data of six metropolitan cities and seven provinces of Korea over the time period from 1990 to 2014. Panel regression results show that economic and demographic factors such as real GRDP per capita and the dependency ratio affect real house prices significantly. However, total population is not statistically significant. House price in regional market is inversely correlated with the dependency ratio, but positively correlated with GRDP per capita in each region. From these results, it can be estimated that the house price will decline by 3–12% in 2020, and more than 20% in 2030. The headwinds are the largest for provinces where ageing is very fast such as Jeonnam and Gyeongbuk – less urbanized and industrialized regions compared to other regions in Korea.

The dynamic effect of population ageing on house prices: evidence from Korea

Purpose – This study analyzes the scope of due diligence and risks of banks and K-Sure in trade finance covered by EFF focusing on Moneual case, one of the latest and biggest trade finance fraud cases in Korea. Also, we suggest anti-fraud measures in trade finance on the part of banks and K-Sure in order to give them a desirable way of due diligence and reasonable risk management of export insurance. 

Design/methodology – Based on Moneual case of trade finance fraud, this study employs the methodology of an extended literature review and analysis of court decisions. 

Findings – Seoul High Court of Korea failed to decide whether K-Sure was wholly obliged to pay the insurance against the banks’ EFF claims, but issued a compulsory mediation order, judging that both the banks and K-Sure were responsible by 50:50. The court may have judged that both the parties had lacked their due diligence in the trade finance. It is quite difficult for trade finance providers to manually investigate whether the transaction is suspected of trade finance fraud, so digitalization of trade finance which can facilitate the prevention and detection of trade fraud needs to be realized quickly. Since there has been no international rule available for open account trade finance up till now, clearly stipulated EFF terms on the exporter’s genuine export obligation might have protected K-Sure from the disaster. 

Originality/value – This study investigates the due diligence of the banks and K-Sure in Moneual case which few researchers have considered, to the best of our knowledge. This study also suggests several practical methods (including block chain) to prevent complicating trade finance fraud amid increasing use of an open account, and further offers reasonable risk management of EFF employing international factoring rule which is also related to problematic open account trade finance.

Anti-Fraud in International Supply Chain Finance: Focusing on Moneual Case

The purpose of this paper is to empirically assess the impact of remittances on the economic performance of the 16 Asian developing countries, taking account of their institutional qualities.,A panel of 16 Asian developing countries (Central Asia, South Asia, and ASEAN) over the period of 2002–2016 is employed in the analysis. To assess the impact of remittances on economic performance in consideration of institutional quality, OLS estimates as well as GMM are used.,The effect of remittances on economic growth is statistically significant. In addition, they also impact economic growth when they interact with institutional or financial development variables. For the long-run growth process of Central Asian, South Asian, and ASEAN countries, a sound and smooth institutional framework appears to be indispensable. Also, it was found that more fragile economies tend to achieve bigger growth than less fragile economies, as this kind of growth is triggered by more remittances flowing into fragile economies. However, the impact of remittances on growth does not depend on the level of ICT. FDI and financial development have positive impact on growth.,There are limitations to this research as well. Due to the unavailability of data, several countries had to be removed from this study. The cost of sending money might be an important variable for this study. However, the data on this variable from reliable sources are almost impossible to gather. Therefore, this variable is also not included in this research. The savings from remittances when intermediated through formal financial channels will, in fact, produce a positive allocation and distribution of resources that may eventually become an important source of growth. However, one precondition for larger and greater growth is that remittances need to be well and properly utilized by the financial sector. Therefore, quality institutions should be formed first, which can facilitate investment activities and make the flow of remittances more convenient.,This paper exclusively considers the case of Asian developing countries (Central Asia, South Asia, and ASEAN) to assess the impact of remittances on the economic performance of these countries, with special consideration of the interaction effects of remittances and institutional quality in these emerging Asian economies. The previous studies on the effect of remittances on growth do not conform to one concrete conclusion. This study is undertaken in a bid to get the best possible result on the impact of remittances on the growth of the selected countries, majority of which attract substantial chunk of remittances into their economies.

Impact of remittances on economic performance in consideration of institutional quality: Evidence from Asian developing economies

Purpose – This study analyzes the effect of internationalization represented as exporting on firm performance on the subject of SMEs operating in Masan Free Trade Zone which has shown poor performance recently despite its status as the oldest and largest free trade zone in Korea. We also analyze the effect of firm size on firm performance, and the moderating role of firm size in relation to internationalization and firm performance. Design/methodology – This study uses multiple regression models for unbalanced panel data as the empirical tools for the estimation of the effect that internationalization has on firm performance (ROA or ROS). Our sample consists of 91 manufacturing SMEs among all 110 companies located in Masan Free Trade Zone as of 2017. Findings – The degree of internationalization has a negative impact on firm performance. However, firm size turns out to have a positive effect and play a positive moderating role in the relation to internationalization and firm performance. This seems to be because most tenant companies operating in Masan Free Trade Zone are small firms whose costs of internationalization may exceed the benefits. Empirical results also show that longer CEO tenure has a greater negative effect on firm performance. Originality/value – The originality/value of this paper can be found in 3 aspects. First, we conducted an empirical analysis on the relationship between the internationalization and firm performance of SMEs in a specific region, namely, Masan Free Trade Zone. Second, while most previous studies focused on listed medium companies, most of the sample of this study are small and medium nonlisted enterprises. Third, it is witnessed that firm size has a positive moderating effect on the relation between internationalization and firm performance.

Sunhae Lee

Papers

Determinants of house prices in Seoul: A quantile regression approach

The dynamic effect of population ageing on house prices: evidence from Korea

Anti-Fraud in International Supply Chain Finance: Focusing on Moneual Case

Impact of remittances on economic performance in consideration of institutional quality: Evidence from Asian developing economies

Internationalization and Performance of SMEs in Masan Free Trade Zone (Korea): The Direct and Moderating Effects of Firm Size