A REEXAMINATION OF SOUTH KOREA¡¯S AGGREGATE IMPORT DEMAND FUNCTION: THE BOUNDS TEST ANALYSIS

This paper uses a robust estimation method referred to as the unrestricted error correction model - the bounds test analysis to re-analyze the long-term relationships between the demand for imports and it¡¯s determinants for South Korea over the period 1980-2000. Our results show that the volume of imports, income, and relative prices are all cointegrated. The estimated long-run (short-run) elasticities of import demand with respect to income and relative price are 1.86 (0.86) and -0.2 (-0.05), respectively. The major implication of our study is that neither monetary nor fiscal policies may be used as instruments to maintain the trade balance in South Korea¡¯s favor during this sample period.Aggregate Import Demand Function, UECM, Bounds Test Analysis

REVISITING HYSTERESIS IN UNEMPLOYMENT FOR TEN EUROPEAN COUNTRIES: AN EMPIRICAL NOTE ON A MORE POWERFUL NONLINEAR (LOGISTIC) UNIT ROOT

In this empirical note we use a more powerful nonlinear (logistic) unit root test advanced by Leybourne et al. (1998) to investigate the hysteresis in unemployment for ten European countries for the period 1961-2003. The hypothesis is confirmed for all the European countries for which Leybourne et al.¡¯s (1998) nonlinear (logistic) unit root test is performed, except for Belgium and the UK.Hysteresis in Unemployment, European Countries, Logistic Unit Root Tests

Does High Unemployment Rate Cause High Suicide Rate? Evidence from Japan and South Korea

This study utilizes an asymmetric Granger causality test suggested by Hatemi-J (2012) to examine the causal relationship running from unemployment rate to suicide rate over the period of 1985 to 2012 in Japan and South Korea. Empirical results show that no Granger causality running from unemployment rate to suicide rate exists in Japan. However, results show that for South Korea, Granger causality exists running from a negative unemployment rate shock to a negative shock in suicide rate. More specifically, a decrease in unemployment rate leads to a decrease in suicide rate. Although the findings of this study do not support that an increase in unemployment rate has led to an increase in suicide rate for Japan and South Korea, a decrease in unemployment rate leads to a decrease in suicide rate in South Korea. Therefore, policy makers in South Korea could decrease unemployment rate to cause a decrease in suicide rate

The Impact of Governance on Income Inequality in Ten Asian Countries

This study utilizes panel data analysis over the 1996 to 2015 period to investigate the impact of governance quality (including democratic quality and technical quality) on income inequality in ten Asain countries, classified as “advanced economies” and “emerging market and developing economies”. The empirical results show that the impacts of democratic quality and technical quality on income inequality are significantly negative within “emerging market and developing economies”. However, for the “advanced economies”, the effects of democratic quality and technical quality on income inequality are nonsignificantly positive and significantly positive, respectively. These findings imply that promoting good governance is useful to reduce income inequality for “emerging market and developing economies” but the effect may not be effective for “advanced economies