Residents' Perceptions of the Impact of Cultural Tourism on Urban Development: The Case of Gwangju,Korea

Cultural tourism constitutes an alternative strategy of sustainable urban development for improving quality of life. The main objective of this type of tourism is to transform regions characterized by cultural resources into ideal places for vacation, residence or business. In this study residents' perceptions of cultural tourism were examined in a case study of Gwangju, Korea. It was found that the majority of the respondents were aware of the importance of cultural tourism and that they argued that it could contribute to urban development. The findings also suggest that there is a strong relationship between the respondents' characteristics and their perceptions of the impact of cultural tourism on urban development.     

How Much Common Belief Is Necessary for a Convention?

We study Bayesian coordination games in which players choose actions conditional on the realization of their respective signals. Due to differential information, the players do not have common knowledge that a particular game is being played. However, they do have common beliefs with specified probabilities concerning their environment. In our framework, any equilibrium set of rules must be simple enough so that the actions of all players are common belief with probability 1 at every state. Common belief with probability close to 1 will not do.Journal of Economic LiteratureClassification Numbers: C72, D82.     

Financial Liberalization and Corporate Investments: Evidence from Korean Firm Data*

This paper examines whether financial liberalization procedures introduced in Korea in the early 1990s succeeded in relaxing financing constraints on firms. Because external funds are more costly than internal funds in an imperfect capital market, corporate investments depend on the availability of internal funds. As financial liberalization mitigates constraints on firms, the sensitivity of investments to cash flow can be reduced. Using panel data on Korean firms, we found that cash‐flow effects on investment spending decreased drastically during the liberalization period. In particular, small, non‐chaebol and established firms that were severely constrained gained most from liberalization. Chaebol firms appeared to lose preferential access to credit after liberalization.     

City versus Metropolis: The Northern League in the Milan Metropolitan Area

Entire metropolitan areas are often seen as fundamental components of the emerging global space–economy. The national and global roles of central cities, however, may lead them in fundamentally different economic and political directions from their hinterlands if the functions of the cities are decreasingly complementary to those of their surrounding areas. In particular, the political complexions of city and hinterland may come to reflect different cultural and economic orientations as a result of divergence in political–economic trajectories between the two. This possibility is explored using the example of the northern Italian city of Milan and its hinterland, taken as the provinces of Bergamo, Como, Lecco and Varese, and the rest of the province of Milan outside of the city with respect to geographical patterns of support for the regionalist/separatist movement, the Northern League, over the course of three national elections: 1992, 1994 and 1996. Putatively a movement representing the interests of northern Italy as a whole, the Northern League’s stands on issues tended increasingly to represent the identities and interests of the small manufacturing firms that dominate part of the fringe of the metropolitan area, whereas Milan itself has an economic base of advanced services and national–oriented manufacturing firms that would lead to the expectation of a very different political orientation. Analysis of election returns suggests a divergence between city and hinterland that is in large part accounted for by their distinctive economic trajectories. There is no simple identity between a city and its metropolis. On considère souvent des zones métropolitaines entières comme des composantes fondamentales de l’espace économique mondial naissant. Les rôles nationaux et planétaires des grandes villes centrales peuvent toutefois les pousser dans des directions économiques et politiques totalement différentes de leur arrière–pays si leur fonction perd de sa complémentarité par rapport à leur zone environnante. Les aspects politiques de la ville et de l’arrière–pays peuvent notamment finir par traduire des orientations économiques et culturelles distinctes è la suite d’une divergence dans leurs trajectoires politico–économiques respectives. Cette possibilité est étudiée au travers de l’exemple de Milan, ville du nord de l’Italie, et de son arrière–pays (couvrant les provinces de Bergame, Côme, Lecco, Varèse et le reste de la province de Milan extérieur à la ville) en s’attachant à la carte géographique des partisans du mouvement régionaliste et séparatiste de la Ligue du Nord au cours de trois élections nationales (1992, 1994 et 1996). Ce mouvement, supposé traduire les intérÁts de toute l’Italie du Nord, a penché de plus en plus souvent pour des positions représentant les identités et intérÁts des petites industries qui dominent partiellement la périphérie de la zone métropolitaine, alors que la base économique de Milan se compose de services de pointe et d’entreprises industrielles d’envergure nationale laissant supposer une orientation politique toute différente. Une analyse des résultats des élections révèle une divergence entre ville et arrière–pays, en grande partie justifiée par leurs axes économiques distincts. Il n’existe pas d’identité simple entre une ville et sa métropole.     

Internationalization and the Dynamics of Product Adaptation—An Empirical Investigation

Firms competing in foreign markets can choose to make no changes to the physical product and packaging, called a product standardization policy, which keeps costs low. The main drawback of such a policy is that the product might not satisfy customers. Conversely, firms may choose to modify, or to adapt, the physical characteristics or attributes of a product and its packaging to fit the needs and desires of consumers in different countries better, but this increases development, manufacturing, marketing, packaging, and distribution costs. Though product adaptation is a core aspect of customizing an export market offering, little research has investigated modifying the physical product and packaging. To be successful, an adapted product must add sufficient incremental revenue (through increased sales due to better satisfying customer needs and wants relative to competitive product offerings) such that the additional manufacturing and marketing costs that result from adapting the product are recovered. In this article, a model of the product adaptation process is developed. Using mail surveys, information is gathered from managers in 239 U.S. organizations and 302 South Korean organizations, all of which export products. The goal was to understand better the motivation of firms to adapt their products for export markets as well as the performance implications of adapting products. Furthermore, the model was tested in these two countries to determine if the model is robust and to uncover differences between the United States and South Korea. Using structural equation modeling to analyze the data, a positive association was found between the level of product adaptation and profitability at the project level. Second, U.S. firms appear to be more reactive when adapting products for export markets, doing so when laws and regulations in the export market mandate changes relative to the U.S. market. Conversely, South Korean firms appear to be more proactive and to adapt products even when not required by the governments of export markets. Third, greater international product adaptation is linked to a more responsive marketing organization with customer‐focused practices. Fourth, while a positive link was expected between business unit experience and the extent of international product adaptation, inconsistent results were found between the two country samples. For U.S. firms, it was found that greater experience in international business and product design capability is linked to a higher level of international product adaptation. For South Korean firms, however, a negative relationship was found. Greater international product adaptation occurred with less international business and product design experience. These findings are discussed, and areas for future research are noted.     

STOCHASTIC HYPERBOLIC DYNAMICS FOR INFINITE-DIMENSIONAL FORWARD RATES AND OPTION PRICING

We model the term-structure modeling of interest rates by considering the forward rate as the solution of a stochastic hyperbolic partial differential equation. First, we study the arbitrage-free model of the term structure and explore the completeness of the market. We then derive results for the pricing of general contingent claims. Finally we obtain an explicit formula for a forward rate cap in the Gaussian framework from the general results.     

GLS detrending-based unit root tests in nonlinear STAR and SETAR models

We extend GLS detrending procedure to testing for unit roots against STAR and SETAR alternatives. Monte Carlo simulations and applications to DM/Yen real exchange rates demonstrate that GLS detrending-based nonlinear unit root tests are more powerful than OLS detrending-based counterparts.     

Factors affecting trust between Korean IT firms and their Chinese counterparts

Trust is important in that it facilitates relational exchanges by permitting partners to transcend short-run inequities or risks to concentrate on long-term profits or gains. This study investigates what factors affect the trust between distribution-channel members, principally those between Korean IT firms and their exporting partners in China. We suggest that factors affecting trust include reputation, size, expertise, length of the relationship, communication, and satisfaction with previous outcomes of conflict episodes. Data were collected through a survey of 128 Korean IT firms, which have export-transaction relationships with Chinese buyers. The data strongly support the research hypotheses. As hypothesized, the results of data analysis show that reputation, communication, and satisfaction with previous outcomes tend to enhance trust. Additionally, we noticed that trust seems to decrease as the experience of conflict episodes increases.     

CEO Ethical Leadership, Ethical Climate, Climate Strength, and Collective Organizational Citizenship Behavior

In spite of an increasing number of studies on ethical climate, little is known about the antecedents of ethical climate and the moderators of the relationship between ethical climate and work outcomes. The present study conducted firm-level analyses regarding the relationship between chief executive officer (CEO) ethical leadership and ethical climate, and the moderating effect of climate strength (i.e., agreement in climate perceptions) on the relationship between ethical climate and collective organizational citizenship behavior (OCB). Self-report data were collected from 223 CEOs and 6,021 employees in South Korea. The results supported all study hypotheses. As predicted, CEOs?? self-rated ethical leadership was positively associated with employees?? aggregated perceptions of the ethical climate of the firm. The relationship between ethical climate and firm-level collective OCB was moderated by climate strength. More specifically, the relationships between ethical climate and interpersonally directed collective OCB and between ethical climate and organizationally directed collective OCB were more pronounced when climate strength was high than when it was low. Theoretical and practical implications of these findings are addressed herein.