scholarly journals The International Competitive Relationships of Three Leading Countries in the Global Shipbuilding Industry

2018 ◽  
Vol 33 (3) ◽  
pp. 73-91
Author(s):  
Hwang Inyoung ◽  
Park J. Hun
Keyword(s):  
Financial Crisis ◽  
South Korea ◽  
Competitive Advantage ◽  
Global Financial Crisis ◽  
Three Dimensional ◽  
Volterra Model ◽  
Annual Data ◽  
Competitive System ◽  
Shipbuilding Industry ◽  
Mutualistic Relationship

South Korea, China, and Japan are three dominant countries in the global shipbuilding industry, and the competition between them has become more complex over time. The International Maritime Organization environmental regulations and the wave of Industry 4.0 have made the global shipbuilding industry more technology intensive than before. However, after the financial crisis of 2008, China’s labor-intensive strategy outperformed the technology-intensive competitive strategy adopted by Japan and South Korea, and China was ranked first with the largest market share. This study sets out to explore whether China’s labor-intensive strategy will remain superior to the technology-intensive one of Japan and South Korea. Specifically, we investigate how competitive relationships between the three countries changed after the 2008 global financial crisis. We also forecast how many ships each country will complete in through 2026. To analyze this dynamic competitive system, we use the three-dimensional Lotka-Volterra model, drawing on annual data reporting the number of ships built. The findings suggest that China has gained a competitive advantage over Japan since the 2008 global financial crisis, while South Korea has maintained a mutualistic relationship with both Japan and China. Our forecast suggests that China may lose its competitive advantage in the near future, if China does not embrace a more technology-intensive approach.

scholarly journals Evidence of effective financial crisis management from South Korea: An example for other regions

2020 ◽  
Vol 42 (1) ◽  
pp. 21-38
Author(s):  
Saysi Sayaseng
Keyword(s):  
Financial Crisis ◽  
South Korea ◽  
Global Financial Crisis ◽  
Var Model ◽  
Impulse Response Functions ◽  
Response Functions ◽  
Macroeconomic Variables ◽  
South Korean ◽  
Positive Growth ◽  
The Global Financial Crisis

AbstractEvidence from the global financial crisis (2007–2008) and the Asian financial crisis (1997) have taught policymakers valuable lessons. The contagious effects of these crises have proven unavoidable and have led to negative economic development. However, South Korea, unlike other countries, has recovered remarkably from both episodes of financial turmoil and proved their ability to maintain positive growth throughout the two periods. This study investigates the correlation between the evolution of South Korean banking and corporate sector before, during and after these crises. A VAR model was employed to test the effectiveness of the South Korean government's policies, in response to the financial crisis from 1997 to 2017, using macroeconomic variables as proxies for newly introduced policies, and non-performing loans for controlled risks. The empirical results indicate impulse response functions which suggest that changes in macroeconomic variables as a representation for the policies resulted in a reduction of non-performing loans. This implies successful risk reduction and an overall economic recovery.

scholarly journals Does the Forty Year’s Success Myth of the Korea Shipbuilding Industry Come to an End?

2017 ◽  
Vol 3 (2) ◽  
pp. 151
Author(s):  
Hong-Yul Jeong
Keyword(s):  
Financial Crisis ◽  
National Economy ◽  
Global Financial Crisis ◽  
Ripple Effect ◽  
Shipbuilding Industry ◽  
The Past ◽  
The Global Financial Crisis ◽  
Key Industries ◽  
Offshore Plants ◽  
Future Plans

<p><em>Shipbuilding industry, having a great ripple effect on national economy, has been fostered by some countries as the national key industries. Korea also has supported shipbuilding industry as one of the industries politically fostered by the state. Accordingly, the shipbuilding industry of Korea has started to developed since 1970’s, reaching the world’s top position in 2000</em><em>’</em><em>s with reference to all the relevant indices.</em></p><p><em>However, after the global financial crisis in 2008, the shipbuilding industries of Korea focused on offshore plants, resulting in huge deficit and being outranked by China.</em></p><p><em>In this article, the past growing procedure of Korea’s shipbuilding industry was briefly reviewed, and the future plans for regaining the past glories as the shipbuilding power were sought.</em><em></em></p>

Proactive and reactive strategies deployed by restaurants in times of crisis

2015 ◽  
Vol 27 (7) ◽  
pp. 1641-1661 ◽  
Author(s):  
María del Mar Alonso-Almeida ◽  
Kerstin Bremser ◽  
Josep Llach
Keyword(s):  
Financial Crisis ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Global Financial Crisis ◽  
Small Sample ◽  
Content Type ◽  
Organizational Effects ◽  
Subsequent Effect ◽  
One Year ◽  
The Global Financial Crisis

Purpose – This study aims to examine the development of dynamic capabilities and their effect on the competitive advantage of restaurants in 2009, one year after the beginning of the global financial crisis. Design/methodology/approach – The restaurants were personally surveyed to discern the importance of proactive and reactive strategies for the organization. The resulting two organizational effects – cost cutting and the development of dynamic capabilities – were tested for their influence on competitive advantage. Findings – The findings show that both proactive and reactive strategies reduce costs; however, only proactive strategies develop dynamic capabilities that improve competitive advantage. Research limitations/implications – The conclusions are drawn from a small sample of restaurants in Madrid, the capital of Spain. Given that Madrid enjoys a higher standard of living and greater business expenditures than other cities, the results may not be generalizable to the rest of the country or to other southern European capitals. Practical implications – Managers must use proactive strategies for companies to survive during times of crisis. A focus on proactive strategies will improve a company’s competitive position. Social implications – Policy makers should support the development of proactive strategies and provide an adequate infrastructure of counseling and network creation. Originality/value – To the best of our knowledge, no previous research specifically analyzes both the type of strategy deployed and its subsequent effect on dynamic capabilities and the consequences of the strategy on competitive advantage during a financial crisis.

scholarly journals Explaining the premium to NAV in publicly traded Australian REITs, 2008–2018

2019 ◽  
Vol 38 (1) ◽  
pp. 4-30 ◽  
Author(s):  
Isil Erol ◽  
Tanja Tyvimaa
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Global Financial Crisis ◽  
Rational Approach ◽  
Annual Data ◽  
Financial Leverage ◽  
Publicly Traded ◽  
Aggressive Approach ◽  
Content Type ◽  
Equity Ratio

Purpose The purpose of this paper is to explore the levels and determinants of net asset value (NAV) premiums/discounts for publicly traded Australian Real Estate Investment Trust (A-REIT) market during the last decade. A-REITs were severely affected by the global financial crisis as S&P/ASX 200 A-REIT index-listed property stocks experienced 47 per cent discount to NAV, on average, in 2008–2009 crisis. Since 2013, A-REIT sector has exhibited a strong recovery from the financial crisis and traded at high premiums to date. Understanding the relationship between pricing in the public and private real estate markets has taken on great importance as A-REITs continue to trade at significant premium to NAV unlike their counterparts in the USA and Europe. Design/methodology/approach This paper follows a rational approach to explain variations in NAV premiums and explores the company-specific factors such as liquidity, financial leverage, size, stock price volatility and portfolio diversification behind the A-REIT NAV premiums/discounts. The study specifies and estimates a model of cross-sectional and time variation in premiums/discounts to NAV using semi-annual data for a sample of 40 A-REITs over the 2008–2018 period. Findings The results reveal that A-REIT premiums to NAV can be explained not only by the liquidity benefit of listed property stocks but also positive financial leverage effect. During the past decade, A-REITs have followed an aggressive approach in financing their growth by using borrowed funds to purchase assets as the income from the property offsets the cost of borrowing and the risk that accompanies it. Debt-to-equity ratio has to be considered as an important source of NAV premiums as highly geared A-REITs that favoured debt financing over equity financing traded at significant premiums to NAV of their underlying real estate assets. Practical implications The paper includes implications for the REIT market investors. The regression analysis shows that specialty A-REITs with a focus on creative market niches traded at higher premiums compared with other property stocks, especially in the post-GFC recovery period. Specialty REITs are more highly valued by the market than their traditional specialised counterparts (e.g. office and retail REITs), and those pursuing a diversified strategy. Originality/value This paper presents an Australian case study as the A-REIT market provides a suitable environment for testing the effect of financial gearing on the REIT premium to NAV. The study provides empirical evidence supporting the importance of debt-to-equity ratio in explaining the variation in A-REIT NAV premiums.

scholarly journals DID THE 2008 GLOBAL FINANCIAL CRISIS AFFECT THE BANKING CREDITS? A CASE OF REGIONS OF TURKEY

2020 ◽  
pp. 74-82
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Global Financial Crisis ◽  
Annual Data ◽  
2008 Financial Crisis ◽  
Dummy Variable ◽  
The Us ◽  
The World ◽  
The 2008 Financial Crisis ◽  
One Year

In 2008 the world faced a global crisis which is started from the US; thus it is named as a “US Great Recession. In this paper, we investigate whether the 2008 financial crisis has an effect on Turkish banking credits in regional case. For this aim we use Non-specialized Loans Deposit which is collected from The Banks Association of Turkey as an annual data. The period of the paper is 2004-2014. The selected regions are 11 NUTS1 regions; thus we have panel data with 121 observations. We use two dummy variable; first dummy values are 1 for 2008 and 0 for other years, a second dummy variable is 1 for 2008 and successor years; 0 for other years. The first dummy shows if the crisis affects only one year, the second dummy shows if the crisis affects crisis year and successor years.

Intellectual Capital Explains a Country’s Resilience to Financial Crisis

2013 ◽  
pp. 52-75
Author(s):  
Carol Yeh-Yun Lin
Keyword(s):  
Financial Crisis ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Global Financial Crisis ◽  
National Development ◽  
Well Being ◽  
Warning Signs ◽  
Policy Implications ◽  
Capital Development ◽  
Southern European Countries

From Resource-Based View (RBV), this chapter introduces intellectual capital as a valuable resource leading to competitive advantage at both organizational and national levels. The chapter elaborates on National Intellectual Capital (NIC) policy implications, using financially-strained countries such as Greece, Iceland, Ireland, Portugal, and Spain as examples. The co-development of NIC and GDP per capita (ppp) of four southern European countries and four Greater China economies during 2005-2010 are also presented and compared. This NIC development study discloses systematic warning signs starting in 2000 for those countries that were later in deep financial trouble, much earlier than the outburst of 2008 global financial crisis. “Intellectual capital explains a country’s resilience to financial crisis” is observed from the comparison. Consequently, in an era when intangible assets have become a key competitive advantage, investing in national intellectual capital development is investing in future national development and well-being.

FACTORS RELATED TO THE RISK OF A SUBSTANTIAL INCOME DECREASE BETWEEN 2006 AND 2008 IN SOUTH KOREA

2019 ◽  
Vol 64 (01) ◽  
pp. 157-173
Author(s):  
EUNICE JIHYUN HONG ◽  
SHERMAN D. HANNA
Keyword(s):  
Logistic Regression ◽  
Financial Crisis ◽  
South Korea ◽  
Global Financial Crisis ◽  
College Education ◽  
Substantial Decrease ◽  
The Global Financial Crisis ◽  
The U.S

Between 2006 and 2008, 9% of Korean households had an income decrease of 50% or more, a rate almost identical to the U.S. despite the much lower impact of the global financial crisis on Korea. We ran a logistic regression to determine factors related to the likelihood of a substantial income decrease between 2006 and 2008 for Korean households. The likelihood of a substantial decrease was low for households below the 75th percentile of 2006 income, probably due to differences in composition of income. Households with college education were less likely than those without college to have a substantial decrease.

Intellectual Capital Explains a Country’s Resilience to Financial Crisis

2013 ◽  
pp. 1504-1526 ◽  
Author(s):  
Carol Yeh-Yun Lin
Keyword(s):  
Financial Crisis ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Global Financial Crisis ◽  
National Development ◽  
Well Being ◽  
Warning Signs ◽  
Policy Implications ◽  
Capital Development ◽  
Southern European Countries

From Resource-Based View (RBV), this chapter introduces intellectual capital as a valuable resource leading to competitive advantage at both organizational and national levels. The chapter elaborates on National Intellectual Capital (NIC) policy implications, using financially-strained countries such as Greece, Iceland, Ireland, Portugal, and Spain as examples. The co-development of NIC and GDP per capita (ppp) of four southern European countries and four Greater China economies during 2005-2010 are also presented and compared. This NIC development study discloses systematic warning signs starting in 2000 for those countries that were later in deep financial trouble, much earlier than the outburst of 2008 global financial crisis. “Intellectual capital explains a country’s resilience to financial crisis” is observed from the comparison. Consequently, in an era when intangible assets have become a key competitive advantage, investing in national intellectual capital development is investing in future national development and well-being.

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