Search results

As the wave of liberalization and deregulation have accelerated to relieve rigid controls over airline routes, capacity, and fare setting regimes, Low Cost Carriers (LCCs) have emerged especially in local aviation markets since the 1970s.

This paper has studied the effects of LCC's entry into the domestic aviation market which was pre-occupied by two major carriers, Korean Air (KAL) and Asiana Airlines. Through a simple model describing two situations, prior and post to LCC's entry, we analyzed changes and trends of each airline's output and profit based on the Cournot and two-stage Stackelberg game equilibrium.

In summary, our conclusion consists of five points: (1) Even though JIN Air's entry reduced KAL's respective output and profit, the more JIN Air produces, the higher the joint-profit of KAL and JIN Air is, (2) From the joint-profit aspect, increasing KAL's output to a level than JIN Air's is more profitable on the Gimpo-Jeju route, on the other hand, increasing JIN Air's output higher than KAL's is more profitable on the Jeju-Busan route, (3) Even though JIN Air's entry increase Asiana Airline's output, the more JIN Air produces, the less Asiana Airlines's profit is, (4) Total output in markets as well as total profits of firms will increase under certain conditions, (5) KAL and JIN Air tend to get caught in an unresolved conflict on level of LCC cost.

This paper studies the formation and management of an international entity for promoting the provision of global public goods in a setup of international treaties on concessions and reservations. Based on the so-called Vienna Convention by which there can be a discrepancy between the original treaty obligation and the ratified one in the multi-lateral treaty implementation, we construct two-stage mechanisms for international treaties on global public goods; the concession stage and the ratification stage with reservations. We explicitly analyze the optimal reservation levels from the optimal mechanism when the countries face asymmetric information on the preference parameters to global public goods. Specifically, we characterize the environments where the optimal mechanism with dominant-strategy incentive-compatibility and ex-post participation- constraint in the literature of mechanism design exists. The result shows that the sophisticatedly calculated transfers in the principal of quid pro quo control the international concessions and reservations.

The weapon system of The Navy is the small quantity producing system on multiple kinds. It is consisted of various equipment and the subordinate parts of those which can repair the damaged part. The operating procedure concerning warship's repair parts managed under these systems is as follows. Firstly, if demand of repair parts occurs from warship which is the operating unit of weapon, then the Fleet(the repair & supply support battalion) is in charge of dealing with these requests. If certain request from warship is beyond the battalion's capability, it is delivered directly to the Logistic Command. In short, the repair and supply support system of repair parts can be described as the multi-level support system. The various theoretical researches on inventory management of Navy's repair parts and simulation study that reflects reality in detail have been carried out simultaneously. However, the majority of existing research has been conducted on aircraft and tank's repairable items, in that, the studies is woefully deficient in the area concerning Navy's inventory management. For that reason, this paper firstly constructs the model of consumable items that is frequently damaged reflecting characteristics of navy's repair parts inventory management using ARENA simulation. After that, this paper is trying to propose methodology to analyze optimal inventory level of each supply unit through OptQuest, the optimization program of ARENA simulation.

This study estimated greenhouse gas emissions from aviation transportation and sought systems that could manage these emissions based on the IPCC guidelines to prepare for greenhouse gas regulations on international airlines. For this purpose, policies to reduce greenhouse gas emissions from aviation transportation were developed based on international agreements and the cases of advanced countries. In addition, marginal abatement costs and greenhouse gas reduction measures were derived for the effective execution of these policies. While estimating greenhouse gas emissions from aviation transportation, it was found that there has been an average increase of 3.9% and 12.9% for domestic and international flights, indicating that it is urgent that we prepare global greenhouse gas regulations. The estimated marginal abatement cost of greenhouse gas from airplanes was approximately. USD 123, and this amount could be used to decide the price of emission rights, the amount of carbon tax, and could be referred to when distributing incentives for voluntary agreements.

The measures to reduce greenhouse gas emissions for aviation transportation were classified into four types: voluntary agreements, international collaboration, greenhouse gas reduction technology and operation process development, and application of emission trading and carbon tax.

This paper examines global imbalance and rebalancing issues from the viewpoint of Korea. As IMF (2009) notes, the unwinding of global imbalance seems inevitable and, in fact, it is in progress. We illustrate that Korea, with a flexible exchange rate system and relatively balanced current accounts, has little direct linkage to global imbalance. However, we also find that Korea is not immune to the costly adjustment process of imbalance due to the triangular trade between Korea, China and the U.S. The fact that Korea is ‘indirectly’ linked to global imbalance limits Korea’s ability to cope with the situation. Boosting domestic demand, often mentioned recommendation for East Asia, is not an appropriate solution for Korea with low personal savings rate. A lot depends on China’s policy. If China reduces its dependence on U.S. market and increases domestic consumption despite unemployment risk in export manufacturing sector, it will provide Korea with an opportunity for more stable growth based on China’s final demand. Korea can also make efforts to increase economic integration and expand monetary cooperation in Asia that would help to increase consumption demands and final goods trade in the region.

As the global economy continues to boom, there remains a significant need for more efficient transportation and effective management in corporate logistics. In this regard, railways have been considered one of the most efficient modes for long distance transportation. In Asia, there are several extensive and direct railroads such as the TSR (Trans-Siberian-Railroad), the TCR (Trans-Chinese-Railroad) and the TMR (Trans-Mongolian-Railroad) which could connect Asia to Europe. If these railroad networks such as the TKR (Trans-Korean-Railroad) were fully operational, it is expected that they would replace a major portion of the current global trade transportation with is sent through other shipping methods. Therefore, the development of railroad networks is one of the most important steps toward an integrated international transportation system. However, in reality, it is difficult to achieve this vision because of the political and economic problems surrounding multiple countries that this network must cut across. Moreover, it is difficult to ensure the railways’ economic competitiveness when it is compared with other logistics options. In this study, we aim to discover the status quo about railway networks by focusing on the TCR and TSR. Through in-depth interviews and surveys with actual users of these networks, current issues and problems are analysed in order to make suggestions for improvements. This research also provides meaningful insights which the TKR-TSR and TKR-TCR railway networks should consider if they want to continue to be successful in the future.

In this paper, we examine the comparative advantage of Korea and China while focusing on their technology level. The three digit SITC (Standard International Trade Classification) data is classified by technology level and the revealed comparative advantage (RCA) is derived from 1992-2009 by using UN COMTRADE data. For careful interpretation of the comparative advantage and technology levels, we also examined intra-industry trade and unit values of bilateral Korea-China trade, and semi-conductor industry technology. We found that the revealed comparative advantage has moved from low technology products to high technology products in Korea. China still maintains a comparative advantage in low technology products such as textiles and clothing, but at the same time, China’s high and medium-high technology products have recently gained a comparative advantage. The perception that China only has a comparative advantage for labor intensive products with low technology should be changed based on our analysis. However, China’s advancement in technology should not be overestimated. When comparing the unit value of basic materials of Korea’s and China’s exports, we found that Korea’s export product prices are on average higher than that of China’s, although the gap is reducing. A wider technology gap between Korea and China still exists in the semi-conductor industry, which is one of the most advanced high technology industries throughout the world.

The purpose of this paper is to apply what can be learned from the emergence of nature tourism to understand some current and future trends of tourism.

This study adopted the evolutionary paradigm for investigation.

The emergence of nature tourism in early medieval China can be attributed to four major factors, including transformation of value orientations, seeking longevity, interest in suburbs and population migration.

Historical studies help understand the current and future trends. When the contributing factors for nature tourism are linked to the contemporary world, it can be found that these factors are still playing a part in shaping tourism trends or patterns in their original or alternative forms. These trends or patterns are worthy of scholarly investigations.

This paper offers a comprehensive understanding of the origins of nature tourism.

This paper provides the methodology of estimating the risk-return relationship of alternative asset investments within the mean-variance framework. While conducting strategic asset allocation, most of the institutional investors do not take into account the risk-return relationship of alternative assets, or use arbitrary policy numbers that do not properly reflect the characteristics of alternative assets. This paper borrows the concept of reference portfolio in developing the methodology of estimating the risk-return relationship of alternative investments. The reference portfolio is the benchmark portfolio used in strategic asset allocation by pension funds. This can serve as the opportunity costs of alternative investments. We use the realized IRR’s from actual investments, and estimate the risk-return characteristics of alternative investments. We find that by properly estimating the mapping relationship between the reference portfolio and alternative asset classes, we can incorporate the risk-return profile of these non-market assets within the mean-variance framework together with the other traditional asset classes.

The Korean airline industry continues to change in 20-year cycles structurally. The major changes are in their market through deregulation and liberalization resulting in adding more carriers, especially low-cost carriers (LCCs) from 2006. The authors categorize three types of LCCs in Korea: (1) independent LCCs, (2) LCCs subsidized by existing airlines as airlines-within-airlines (AwAs), and (3) LCCs supported by conglomerates and local governments. Independent LCCs have suffered financially during the research period from 2009 to 2013, especially from the impaired capital, even though these LCCs are growing rapidly and expanding their markets in domestic and international routes. AwAs’ efficiency is higher than that of independent LCCs, the roles in the market are limited because of cannibalization by their mother company.