Treatment effect analysis of early reemployment bonus program: panel MLE and mode-based semiparametric estimator for interval truncation

We use Korean data to find the effects of Early Reemployment Bonus (ERB) on unemployment duration; ERB is a bonus that the eligible unemployed receive if they find a job before their unemployment insurance benefit expires. A naive approach would be comparing the ERB receiving group with the non-receiving group, but the ERB receipt is partly determined by the unemployment duration itself (thus, an endogeneity problem). Interestingly, there were many individuals who did not receive the ERB despite being fully eligible, and this is attributed to being unaware of the ERB scheme. Taking this as a ??pseudo randomization??, we construct treatment and control groups using only the eligible. Our data set is an unbalanced panel with the response variable interval-truncated due to eligibility requirement of the ERB. We propose a panel random-effect MLE and a semiparametric ??mode-based?? estimator for the interval-truncated response. Our empirical finding is that the effect varies much, depending on individual characteristics. As for the mean effects, whereas the MLE indicates large duration-shortening effects, the semiparametric estimator shows much weaker and mostly insignificant effects.     

Assertive Environmental Advertising and Reactance: Differences Between South Koreans and Americans

In three studies, the authors show that Americans and South Koreans react differently to environmental advertising campaigns featuring assertive messages that threaten autonomous freedoms. The findings uphold their hypothesis that cultural differences determine whether consumers will show reactance to assertive advertising campaigns. Study 1 demonstrates that Americans are less receptive to an assertive recycling message using imperatives such as should, must, and ought and more receptive to a nonassertive message using could, might, and worth. South Koreans do not show the reactance response. Study 2, an energy-saving campaign, conceptually replicates the findings and further shows that perceived threat to freedom mediates the effects. Study 3 uses a realistic setting (i.e., online magazine) to further support the hypothesis that cultural differences affect attitudes toward assertive messages, but adds perceived politeness as an underlying second mediator.     

Innovation and firm performance in Korea and China: a cross-context test of mainstream theories

We investigate the relationship between innovation and firm performance in two divergent emerging economy contexts: Korea and China. Mainstream innovation theories make disparate claims for how (1) intensity of innovation, (2) scope of innovation and (3) spillovers impact firm performance. Using a comparative institutionalist approach we hypothesise how these relationships apply to firms in Korea and China. Analysis of 897 firm–year data points over a 4-year period provides broad support for our hypotheses. Intensity of innovation (patent intensity) is a strong cross-contextual argument. Scope and spillover arguments appear to be more context-sensitive. Firms with innovation depth in specific technological fields enjoy better performance in Korea, while diversified innovation is more beneficial for firms in China. Spillovers have a stronger impact in Korea than China. The findings underline the importance of incorporating change in institutional context when developing policy and theory relating to firm innovation and performance in emerging economies.     

Korean unification prospects: an assessment through the BDN-model

The debate on the possible unification of South Korea and North Korea has often been assessed from the economic perspective, which is insufficient since unification entails not only the integration of two economies but political, social and technological integration of two territories. Using the box negotiation diagram model, this paper expands the scope of the study on South Korea and North Korea unification through a multidisciplinary approach encompassing the political, economic, social and technological perspectives. Given the huge imbalanced points of unification drawn from our analysis, we observed more divergence than convergence hence, hinging the possibility of unification of serious negotiation.     

International environmental agreements under uncertainty

Negotiations toward international environmental agreements takeplace under uncertainty. We address the process of coalitionformation in this context. Coalitions are more likely to formamong countries which are similar. Since countries are morelikely to be facing similar conditions ex ante rather than expost, (i.e. before the resolution of uncertainty rather thanafter it), the possibility of coalition formation is enhancedthe sooner the negotiations take place. The social value ofbetter scientific information may well be negative in such circumstances.     

Editors’ introduction transitional economies: Progress and pitfalls

Many Asian countries are undergoing transition from centrally planned to market-oriented economies. The People's Republic of China (PRC) and Viet Nam have been going through this transition since the 1980s, while Mongolia and the former Soviet republics of Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan began their transition in the 1990s with the dissolution of the Soviet Union in 1991. On the other hand, Cambodia, the Lao People's Democratic Republic, and Myanmar, while they have begun reforms, are still in the early stages of transition. North Korea has probably made the least progress in this regard. This Special Issue on Transitional Economies aims to provide valuable insights for Asia's developing countries still in transition and to provide them with policy recommendations for avoiding the pitfalls of transition experienced in the 1990s.