Size Of Domestic Market Research Articles

Korean Offshore Wind Electrical Power Generation: Current Status and Prospects

Offshore wind power generation is recognized as an environmentally friendly and sustainable energy source, rapidly advancing with governmental support in many countries such as Denmark, China, Germany, and across Europe due to its high energy stability, potential, and economic benefits. South Korea has set a target of 17.7GW for wind power generation through its Renewable Energy 3020 Implementation Plan, aiming to supply 12GW of offshore wind power by 2030. However, Korea faces slower development compared to overseas counterparts due to various obstacles including lack of community acceptance, low business feasibility, complex approval processes, and insufficient supply chain. This study identifies fundamental reasons behind Korea's sluggish growth in offshore wind power generation and proposes the following solutions through comparison with leading international cases. 1) Strengthening positive communication with residents by clearly articulating the value and benefits of offshore wind power projects to address community acceptance issues. 2) Resolving low business feasibility issues through the establishment of government-led incentive programs and support measures. 3) Streamlining approval processes to mitigate delays and cancellations in project implementation. 4) Expanding domestic market size and enhancing efficient power interconnection to address supply chain deficiencies.

Measuring dynamic supply chain risks for the offshoring decision in the post‐COVID‐19 era: A longitudinal study

AbstractIn times of prolonged economic doldrums across the globe, multinational firms (MNFs) offshoring blunders can undermine their competitiveness in the marketplace. To help the MNF formulate a more resilient offshoring strategy and identify the most desirable offshoring destination, this article aims to identify dynamic risk factors that significantly hinder the efficiency of offshoring and then measure specific offshoring risks over time using two different versions of data envelopment analysis (DEA) models and Malmquist productivity index (MPI). After assessing the degree of risk resiliency of the offshoring host countries over extended periods and then conducting Tobit regression analysis to identify key factors that significantly influence offshoring risks, we found that the host country's logistics efficiency (i.e., logistics performance index [LPI]) and domestic market size were critical indicators of offshoring success in that country. Since low‐cost sourcing countries (LCCs) tend to have relatively low LPIs and smaller domestic market sizes, they are not attractive offshoring destinations. This finding defies conventional wisdom. This article is one of the first longitudinal studies to assess the comprehensive risk resilience of 87 different offshoring destinations (countries) during multiple periods (6‐year span).

Analyst coverage and default risk

This study explores the causal effect of analyst coverage on corporate default risk. Using the exogenous drop of analyst coverage due to brokerage mergers and closuresas a natural experiment, we observe an increase in the probability of default following the coverage termination. This result is driven by firms having large asymmetric information problems (few analysts following and intangible-intensive firms), higher financing constraints, lower stock liquidity and firms operating in countries with a larger domestic stock market size. We explore agency costs and stock liquidity as potentialchannels, finding empirical support only for this latter. Finally, we observe that firms react to the analyst loss by adopting conservative investment and financing policies in the aim to mitigate the increase in default risk.

Market potential: the measurement of domestic market size

Influenced by the concept of the strength of a force in physics, access to markets has since the 1940s been evaluated by indicators of ‘potential’, measured as a sum of a distance-weighted of population or market size of foreign or external territories. Later development of the New Economic Geography (NEG) by Paul Krugman did not solve the problem of calculating internal market size in a way that can be used to add it to calculations for external market potential. This paper analyzes the consequences of geometrical justifications in measuring internal market potential. For a sample of European regions, the paper concludes that the literature should be more explicit about historical processes of agglomeration and methods of calculating internal market size.

Entrepreneurship development in photovoltaic technological innovation system: a case study in Iran

Purpose This paper aims to develop a causal feedback structure that explains the dynamics of entrepreneurship development in Iran’s photovoltaic (PV) technological innovation system (TIS) to design effective policy interventions for fostering PV innovation. Design/methodology/approach This study adopts the system dynamics approach to develop the causal structure model. The methodology follows a systematic method to elicit the causal structure from qualitative data gathered by interviewing several stakeholders with extensive knowledge about different aspects of Iran’s PV TIS. Findings Lack of technological knowledge and financial resources within Iranian PV panel-producing firms are the main barriers to entrepreneurship development in Iran’s PV TIS. This study proposes two policy enforcement mechanisms to tackle these problems. The proposed feedback mechanisms contribute to the domestic PV market size and knowledge transfer from public research organizations to the PV industry. Practical implications The proposed policy mechanisms aid Iranian policymakers in designing effective policy interventions stimulating innovation in Iran’s PV industry. Originality/value The main contributions of this study include conceptualizing the causal structure capturing entrepreneurship dynamics in emerging PV TIS and proposing policy mechanisms fostering entrepreneurship and innovation in PV sectors.

Market Potential: The Measurement of Domestic Market Size

Market Potential: The Measurement of Domestic Market Size

스타트업의 성장을 위한 해외 주요국의 정책 비교 연구

Purpose: The main purpose of this study is to analyze policy cases in major overseas countries for the sustainable growth of startups from an ecological perspective and compare the results. In addition, through the results of this comparison and analysis, we seek to derive what the policy characteristics of major overseas countries have on the current status of startups and the ecosystem structure in Korea. By closely examining global policy cases and identifying various policy approaches, we hope that the results and implications of this study will contribute to ongoing efforts to foster a dynamic startup ecosystem for stakeholders who make up the corporate ecosystem, such as entrepreneurs and policy makers.
 Research design, data, and methodology: The UK, France, and Germany were seen as relatively suitable for comparison with Korea in terms of population and economic size. Additionally, Singapore and Estonia, despite their small domestic market size, exhibited high competitiveness in the growth of startups and the subsequent creation of unicorn companies. The selection of these countries as the subject of research was based on these considerations. Policy cases from each of these countries were explored, focusing on reports from government agencies, and these cases were analyzed based on common standards to derive commonalities and differences.
 Results: The results of this study can be characterized in three categories. First, concerning the growth of a company, what they have in common is that they are divided into stages according to the growth cycle and focus on customized support needed at that stage. Second, in the cooperation and network category, a common feature is building a collaborative ecosystem through domestic and international partnerships. Additionally, small countries in terms of population and economy emphasize the importance of international cooperation and resource utilization, while large countries tend to emphasize the integration of domestic entrepreneurial capabilities and resources and the synergy effects to strengthen the startup ecosystem. Third, in the institutional environment and infrastructure category, it is characterized by a focus on actively attracting overseas talent and supporting research, as well as ensuring that related support is based on local infrastructure or embedded in the local ecosystem.
 Implications: The implication of this study is, first of all, that there is a need for the scope of policy support related to the startup ecosystem to be evenly distributed regionally. Additionally, the composition of the network in the startup ecosystem must be accompanied by horizontal changes based on the company’s growth cycle. Furthermore, there is an expansion in the diversity of members participating in the startup ecosystem. This means that emphasizing both quantitative and qualitative diversity can enable startups to promote growth based on inclusivity and creativity while dealing with the risks and challenges of complex business activities to which they are relatively frequently exposed.

ANALISIS TAX HOLIDAY DAN FUNDAMENTAL PEREKONOMIAN NEGARA TERHADAP FOREIGN DIRECT INVESTMENT (FDI) DI ASEAN-9

In the current era of liberalization, openness to foreign capital is an important factor affecting the economic performance of a country. Foreign Direct Investment (FDI) is an important source of capital for developing countries including ASEAN member countries. This study aims to determine the effect of taxation factors, namely tax holidays and corporate income tax rates, as well as non-tax factors, namely political stability and security, regulatory quality, domestic market size, macroeconomic stability, and labor availability on FDI flows in ASEAN. This study uses panel data regression. Research data is secondary data in the form of 2010-2019 period from 9 ASEAN member countries. The results of this study indicate that taxation factors, namely tax holidays and corporate income tax rates, have no effect on FDI flows. Meanwhile, for non-taxation factors, the quality of regulations and regulations, the size of the domestic market, and macroeconomic stability have an influence on FDI flows. Other non-tax factors, namely political stability and labor availability, have no influence on FDI flows in these countries.

Presidential Address: Demand‐Side Constraints in Development. The Role of Market Size, Trade, and (In)Equality

What is the pathway to development in a world marked by rising economic nationalism and less international integration? This paper answers this question within a framework that emphasizes the role of demand‐side constraints on national development, which is identified with sustained poverty reduction. In this framework, development is linked to the adoption of an increasing returns to scale technology by imperfectly competitive firms that need to pay the fixed setup cost of switching to that technology. Sustained poverty reduction is measured as a continuous decline in the share of the population living below $1.90/day purchasing power parity in 2011 U.S. dollars over a five‐year period. This outcome is affected in a statistically significant and economically meaningful way by domestic market size, which is measured as a function of the income distribution, and international market size, which is measured as a function of legally‐binding provisions to international trade agreements, including the General Agreement on Tariffs and Trade, the World Trade Organization, and 279 preferential trade agreements. Counterfactual estimates suggest that, in the absence of international integration, the average resident of a low‐ or lower‐middle‐income country does not live in a market large enough to experience sustained poverty reduction. Domestic redistribution targeted towards generating a larger middle class can partially compensate for the lack of an international market.

경제적 자유가 외국인직접투자 촉진에 미치는 영향

Purpose - This study is to investigate the direct and moderating effect of intangible variable like economic freedom to facilitating factors on FDI(foreign direct investment) inflows and the difference of facilitating factors by the stage of economic development.
 Design/methodology/approach - Fixed-effect panel regression analysis with 19-year macro economic data from 2000 to 2019 including economic freedom index from Fraser Institute in 13 developed and 15 developing countries was used.
 Research implications or Originality - In analysis of direct effect of 5 sectors in economic freedom, the influence of economic freedom was shown weaker than other macro economic factors on FDI inflows, which indicates that actual development of economic factors are more important. The effect of economic freedom on FDI inflows at the stage of economic development differed. In developed countries, human capital, GDP, export, free trade and regulation affected FDI inflows in decreasing order, as did human capital, GDP, consumption expenditure, export, investment expenditure, government expenditure, free trade and sound money in developing countries. In analysis of moderating effect of economic freedom, a domestic and international market size, a flexible labor market which can provide a cheaper good human resources and government expenditures for improving social infrastructure under free economic environment facilitated FDI inflows. However, the statistical significance of moderating effect on export was not shown, which indicates that

Developing local industries and global value chains: The case of offshore wind

Renewable energy sectors are becoming increasingly globalized with lead firms appropriating value on a global scale: This creates challenges for nations seeking to anchor some of the value locally through indigenous industrial development. Since lead firms select their suppliers for a given deployment project, national governments can set incentives for these firms to opt for local suppliers. We use the case of offshore wind in Europe to quantitatively measure the origin of suppliers across three global value chain governance modes: market, modular and relational. Suppliers can originate from the windfarm country, the lead firm's country or the global market. We test supplier selection across the modes of governance, domestic market size and local content push using a database of over 12,000 supplier contracts. The results indicate that lead firms mostly draw from the global market for market-coordinated segments, while favoring local suppliers under local content regulations. Local lead firms have a higher tendency to source locally for both market and relationally coordinated suppliers. However, local content push reduces the tendency of local lead firms to select local relational suppliers. Therefore, local content requirements seem to be broadly successful to stimulate locally sourced suppliers of the market-coordinated type; on the other hand, our results show that national governments should have local lead firms commission projects without imposing local content regulations to increase the odds that local relational suppliers are selected.

Inward- versus outward-focused bioeconomy strategies for British Columbia\u2019s forest products industry: a harvested wood products carbon storage and emission perspective

BackgroundBritish Columbia’s (BC) extensive forest resources provide climate change mitigation opportunities that are available to few other jurisdictions. However, as a consequence of the Mountain Pine Beetle outbreak and large-scale wildfires, BC is anticipating reduced roundwood harvest for the next decades. Progress towards more climatically efficient utilization of forest resources is needed. This research quantitatively compared the greenhouse gas emission consequences of nine harvested wood products trade and consumption strategies. Inward-focused strategies use wood products within Canada to achieve emission reduction objectives, while outward-focused strategies encourage exports of wood products.ResultsIn the business-as-usual baseline scenario, average emissions arising from BC-originated harvested wood products between 2016 and 2050 were 40 MtCO2e yr−1. The estimated theoretical boundaries were 11 MtCO2e yr−1 and 54 MtCO2e yr−1, under the scenarios of using all harvests for either construction purposes or biofuel production, respectively. Due to the constrained domestic market size, inward-focused scenarios that were based on population and market capacity achieved 0.3–10% emission reductions compared to the baseline. The international markets were larger, however the emissions varied substantially between 68% reduction and 25% increase depending on wood products’ end uses.ConclusionsFuture bioeconomy strategies can have a substantial impact on emissions. This analysis revealed that from a carbon storage and emission perspective, it was better to consume BC’s harvests within Canada and only export those products that would be used for long-lived construction applications, provided that construction market access beyond the US was available. However, restricting export of wood products destined for short-lived uses such as pulp and wood pellets would have significant economic and social impacts. On the other hand, inward-focused strategies had a small but politically and environmentally meaningful contribution to BC’s climate action plan. This study also revealed the conflicts between a demand-driven bioeconomy and targeted environmental outcomes. A hierarchical incentive system that could co-exist with other market drivers may help achieve emission reduction goals, but this would require a better quantitative understanding of wood products’ substitution effects. While the analyses were conducted for BC, other regions that are net exporters of wood products may face similar issues.

국내 화장품 동향 분석에 대한 고찰 연구

The scope of the cosmetic industry can be determined based on five major classification systems, including the Korean Standard Industrial Classification Criteria (KSIC-9), however, the scope and target of the five classification systems are different. It is necessary to select and use them according to the purpose of the statistics. At this time, it is important to interpret and understand such data and statistics. In 2012, the related regulations were changed to require manufacturers and distributors to report their actual output and import records. From the statistics of the cosmetic industry focusing on reported actual output and import records, the government obtained the information necessary to establish policies and companies obtained the information necessary for decision-making, however, there were still limitations.Accordingly, based on the cosmetics industry analysis report and the data that analyzed the cosmetics trends in various domestic markets, the size of the domestic markets, the number and production status of cosmetic manufacturers, and production output data by cosmetic type and production year were investigated. In addition, by analyzing the import and export performance of the domestic cosmetics industry, the status of major cosmetics exporting countries and importing countries was investigated. As a result, a comprehensive analysis of the domestic cosmetics market size and the number of cosmetics sellers were analyzed by type, and suggestions were made on the production of statistics and cosmetics industry-related policies.

PROSPECTS FOR EXPANDING THE PRESENCE OF DANISH MULTINATIONAL COMPANIES IN THE RUSSIAN MARKET

Based on the conducted research of Danish multinational companies, it was revealed that the organization of their work is characterized by strategies for expanding and entering foreign markets through the opening of production facilities. The reason for this is the small size of the Danish domestic market, the high demand for the products of the companies abroad, and the particular geographical location. The Russian market contains many opportunities for Danish companies to increase the client base, improve sales channels, and convenient location of production both due to the geographical and economic characteristics of location (the possibility of duty-free transportation of goods within the EAEU) and due to access to resources. At the same time, the Russian side is interested in the inflow of foreign direct investment, the creation of new workplaces, especially in remote regions of the country, the study and implementation of new methods of management and organization of production. An important factor is the presence of special economic zones, the advantages of which a foreign company can use. This article examines business projects that could be promising in the context of sanctions restrictions and are beneficial to both parties. Particular attention in the article is paid to the pharmaceutical sector, logistics services, and the energy sector.

Who purchases cross-border? Individual and country level determinants of the decision to purchase cross-border in the European Single Market

E-commerce possesses considerable potential for developing the internationalisation and integration of consumer markets by bringing sellers and consumers from different countries directly into contact with each other without the requirement for intermediaries. However, cross-border online purchases remain low compared to domestic online purchases. Large differences between individual countries are also observed in the percentage of consumers who purchase cross-border. While previous studies of e-commerce have concentrated on the decision to buy on-line, this study concentrates on the decision to purchase cross-border compared to purchasing on-line only domestically. To this end, a statistical qualitative response model is developed and tested against a large data set of consumers living in the thirty countries belonging to the European Economic Area. The results demonstrate the importance of country level determinants in addition to the personal characteristics of the consumer in terms of their age, gender, profession, educational background, location and trust in non-domestic suppliers in the decision to purchase cross-border. Among the country level determinants, domestic market size, economic development and ethnic fractionalization of the country are all shown to play an important role. The results have important practical implications for e-commerce sellers as well as public authorities. The country-specific socio-economic determinants can help to better assess the potential market for cross-border selling and guide public policies aimed at stimulating cross-border selling as a means to integrate consumer markets in the European Economic Area.

Determinants of Foreign Direct Investment Inflow to Ethiopia: Time Series Evidence (ARDL Approach)

In low income country foreign direct investment is taken as the next best alternative source to fill the gap between domestic savings and the required investment for economic growth. While its inflows to Ethiopia are the lowest by a wide margin both in actual quantity and as a proportion of gross national product (GNP). This study deals the empirical relation between FDI inflow and its determinants in Ethiopia by employing Autoregressive distributed lag model for the time period covering from 1981 to 2018. The stationarity properties of the data was detected using Augmented Dickey–Fuller (ADF) and Phillip–Perron (PP) unit root test and the result indicates all the variables are stationary at level and first difference calling the effectiveness of ARDL model. The ARDL bound test used to test the existence of long-run link among the variables and the result confirmed that there is long run relationship among FDI and independent variables. The results indicated that the FDI flows to Ethiopian economy are determined by the degree of trade openness; domestic market size proxied by per capita GDP; domestic bank credit; rate of inflation; human capital and official exchange rate in the long-run and trade openness; rate of inflation and official exchange rate in its short run dynamics. The policy which creates favorable environments for domestic credit institution; predictable official exchange market and uninflated domestic price situation enables to harvest the highest possible expected benefits from FDI inflow. Keywords: FDI, ARDL, Bound test, ECM, Ethiopia DOI: 10.7176/IAGS/85-01 Publication date: August 31 st 2020

Effects of initial coin offering characteristics on cross-listing returns

The low level of regulation and publication requirements in cryptocurrency markets leads to little information on cryptocurrency projects being publicly available. Against the background of high information asymmetry, the interpretation of the available information is all the more important. This paper examines how initial coin offering (ICO) characteristics affect cross-listing returns, i.e. whether or not available information is a valuable market signal of quality. For this purpose, we analyze 250 cross-listings of 135 different tokens issued via ICOs and calculate abnormal returns for specific samples using event study methodology. We find that cross-listing returns are driven by success in terms of token performance and project funding, as well as by jurisdiction-specific characteristics like the extent of regulation and domestic market size. Other characteristics such as the choice or change of blockchain infrastructure, token distribution across investors and the project team, campaign duration and whitepaper characteristics also seem to influence perceived project quality and thus cross-listing returns. The results contribute to the literature on cross-listings, cryptocurrency markets and entrepreneurial finance in the form of ICOs. They also make it possible to interpret the information available on the market and enable investors, project teams and cryptocurrency exchanges to evaluate probable market reactions to cross-listings.

Effects of Initial Coin Offering Characteristics on Cross-listing Returns

The lack of transparency in cryptocurrency markets means that investors must assess a project’s quality on the basis of public information. This paper examines how initial coin offering (ICO) characteristics affect cross-listing returns, i.e. whether or not the available information is a valuable signal of quality. For this purpose, we analyze 250 cross-listings of 135 different tokens issued via ICOs and calculate abnormal returns for specific samples using event study methodology. We find that cross-listing returns are driven by success in terms of token performance and project funding, as well as by jurisdiction-specific characteristics like the extent of regulation and domestic market size. Other characteristics like the choice or change of blockchain infrastructure, token distribution across investors and the project team, campaign duration and whitepaper characteristics also seem to influence perceived project quality and thus cross-listing returns. The results provide insights for the literature on cross-listings, cryptocurrency markets and entrepreneurial finance in the form of ICOs. They also make it possible to interpret the information available on the market and enable investors, project teams and crypto currency exchanges to evaluate probable market reactions to cross-listings.

India’s Inward (Re)Turn: Is it Warranted? Will it Work?

India is turning inward. Domestic demand is assuming primacy over export-orientation and trade restrictions are increasing, reversing a 3-decade trend. This shift is based on three misconceptions, which we dispel: that India’s domestic market size is big, India’s growth has been based on domestic not export markets, and export prospects are dim because the world is deglobalizing. In fact, India still enjoys large export opportunities, especially in labour-intensive sectors such as clothing and footwear. But exploiting these opportunities requires more openness and more global integration. Abandoning export orientation is thus akin to killing the goose that lays golden eggs. Indeed, given constraints on public, corporate and household balance sheets, abandoning export orientation is akin to killing the only goose that can lay eggs.

Income Distribution, International Integration, and Sustained Poverty Reduction

What is the pathway to development in a world with less international integration? We answer this question within a model that emphasizes the role of demand-side constraints on national development, which we identify with sustained poverty reduction. In this framework, development is linked to the adoption of an increasing returns to scale technology by imperfectly competitive firms, who need to pay the fixed setup cost of switching to that technology. Sustained poverty reduction is measured as a continuous decline in the share of the population living below $1.90/day PPP in 2011 US dollars over a five year period. This outcome is affected in a statistically significant and economically meaningful way by both domestic market size, which is measured as function of the income distribution, and international market size, which is measured as a function of legally-binding provisions to international trade agreements, including the General Agreement on Tariffs and Trade, the World Trade Organization and 279 preferential trade agreements. Counterfactual estimates suggest that, in the absence of international integration, the average resident of a low and lower-middle income country does not live in a market large enough to experience sustained poverty reduction. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.