• Title, Summary, Keyword: Subsidy Policy

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The Impact of Government Innovation Subsidies on the Survival of SMEs in Korea

  • Kim, Sangsin
    • STI Policy Review
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    • v.9 no.1
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    • pp.55-76
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    • 2018
  • This study analyzed the effect of the government R&D subsidy program on long-term firm survival. In order to estimate the average treatment effect for the treated group, we used the survival analysis and matching method by constituting a comprehensive dataset of more than 90,000 observations. The analysis results show that the government R&D subsidy has a negative impact on long-term firm survival. In particular, not only the subsidy does not have a statistically significant effect on firm survival in the relatively short-term, the survival probability of the subsidized firms is statistically significantly lower than the non-subsidized firms after six years. These results can be seen as weakening the justification of government R&D support. There may be problems in the subsidy policy itself and the process of selection of subsidy awardees; however, the more fundamental problem is that the subsidy policy is concluded as the one-time event. Admittedly, it would be difficult for the government to precisely manage the subsidized projects over a long term period. However, in the case of a project in which short-term performance is detected, it would be necessary to provide a step-by-step support to strengthen the firm's competitiveness through further support and continuous development of performance. Of course, mid- and long-term evaluations of subsidy support policy should be performed in parallel with such phased support.

Effects of a Universal Childcare Subsidy on Mothers' Time Allocation

  • LEE, YOUNG WOOK
    • KDI Journal of Economic Policy
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    • v.38 no.1
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    • pp.1-22
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    • 2016
  • This paper examines the effects of a universal childcare subsidy on childcare decisions and mothers' employment by using Korea's policy reform of 2012, which provided a full childcare subsidy to all children aged 0 to 2. I find that the introduction of a universal childcare subsidy increased the use of childcare centers by children aged 0-2, which led to less maternal care compared to that provided to children aged 3-4. However, the expanded subsidy had little effect on mothers' labor supply. Moreover, the policy effects vary by individual and household characteristics. The effects of the expanded subsidy are mainly found in low-income households and less educated mothers. Highly educated mothers and high-income households are likely to focus more on the quality of childcare service. These results imply that a simple reduction in childcare costs would bring only limited effects on mothers' time allocation behavior; thus, more attention should be paid to improving the quality of childcare services.

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Evaluation and Improvement of a Subsidy Policy on Early Scrapping of Old Diesel Vehicles (노후경유차량 조기폐차 보조금 지원 제도 성과분석 및 개선방안)

  • Kim, Jongwon;Kang, Kwangkyu
    • Journal of Environmental Policy
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    • v.14 no.2
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    • pp.73-99
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    • 2015
  • A subsidy policy on early scrapping of old diesel vehicles has been activated to improve air pollution in Seoul metropolitan area. The benefit-cost analysis on this policy evidently shows cost effective as benefit is greater than cost. The policy currently provides 80% of old diesel vehicle's worth within the maximum amount capped which limited the effects on increasing the level of subsidy. Therefore, to induce more old diesel vehicles scrapped, it is needed to consider that the level of subsidy and the maximum amount are raised at the same time. Meanwhile, taking account of insufficient subsidy amount, granting older vehicles more subsidy would be a good way of extending the policy effect.

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Economic Feasibiltiy Analysis of Renewable Energy of Green Home Policy (그린홈사업을 위한 신재생에너지 기술의 경제적 타당성 평가)

  • An, Hyung-Jun;Heo, Eun-Nyeong
    • 한국신재생에너지학회:학술대회논문집
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    • pp.196-199
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    • 2009
  • Korean government decided to give a subsidy for renewable energy system of green home. This policy will make an appeal to consumers. But For success of this policy, Economic benefit of consumer is essential. In this study, benefit and cost is seperated to consumer part and government part, respectively. consumer's benefit is energy saving and asset value increment. Consumer's cost is real input money except government's subsidy. Government's benefit is consist of energy import reduction, carbon discharge reduction and new production increment, As a result, the government subsidy will not so enough to activate the green home. PV system for the korean general apartment has the payback period of 19 years. So, For the dissemination of renewable energy of green home, more strong subsidy policy and more economic technoloy development is requested.

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A Study on the Effectiveness of the Oil Supply Policy for Korean Fisheries Industry in the Era of Subsidy Prohibition (수산보조금 금지 시대의 유류 공급 정책에 대한 연구)

  • 강연실
    • The Journal of Fisheries Business Administration
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    • v.33 no.1
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    • pp.43-68
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    • 2002
  • In the fisheries industry, the cost of oil Is the greatest factor, contributing 25% 40% of the cost of production. In order to support fisheries, the government has supplied large amounts of money for oil to the fisheries industry. However, the elimination and restriction against the subsidy of fisheries has been actively discussed throughout international organizations Including the WTO. The purpose of this thesis is to study the existing issue of subsidies on the fisheries Industry, which is currently disputed in international organizations, and predict a future policy about the oil supply that considers the most important factors on fisheries. In chapter 2, the paper begins by outlining the tendencies of discussion in relation to the subsidy on fisheries among international organizations, and categorizes them on the basis of their types. Chapter 3 defines the current conditions and characteristics of the Korean subsidy on fisheries and analyzes which portions of the subsidy on fisheries should be eliminated first when it is prohibited. In chapter 4, procedures and problems for producing tax-free oil are discussed, because tax-free oil has a higher possibility of being ruled out. Chapter 5 proposes a reasonable plan concerning oil supply policies for maintenance or enrichment of the fishing industries, post the elimination of subsidies. Conclusions were drawn in eight areas as a result of this study: 1) securing the large storage of oil, 2) extending customers of oil to include non-fishermen, 3) coordinating the segmentation of marketing area, 4) diversification of the sales goods, 5) producing oil sales experts, 6) developing original brands, 7) expanding the purchasing area to buy oil in the international market, and 8) operating funds to stabilize oil price. It would not be appropriate to wait until international organizations decide to ban the subsidy of fisheries. Corresponding plans ( such as securing the large storage of oil) tend to be large scale and long-term projects because they take a number of years, from designing the oil storage tank to selecting the proper region and initiating the construction. Therefore, it is strongly suggested that any extensive and time consuming projects including preparation for the tax-free oil should be completed in new actions before the ban by the international organizations.

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A Study on the Dispute Case under the WTO ASCM - Focus on the Subsidy for Korean Shipbuilding and Hynix Semiconductor(DRAM) - (WTO보조금 협정하의 분쟁사례 연구 - 조선 및 하이닉스 반도체의 보조금 분쟁을 중심으로 -)

  • Kim, Ji-Yong
    • International Commerce and Information Review
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    • v.9 no.1
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    • pp.451-465
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    • 2007
  • It is true that every country which includes the developing country has planned own economic development through government subsidies. Korea also has developed their some major industry through supporting government subsidies. Under the WTO structure, however, government's specific supports for export firms come under prohibited subsidy and subsidy supporting must be based on WTO ASCM(Agreement on Subsidies and Countervailing Measures). The purpose of this paper was to study on the WTO ASCM and to analyze cases on the shipbuilding and Hynix DRAM dispute which Korean concerned major subsidy issue. Korea has been undergoing subsidy dispute with EU and U.S.A. concerned matter of shipbuilding and Hynix DRAM respectively. From this research results were as follow : First of all, the WTO ASCM introduced a definition of subsidy and divided subsidies into three categories and was legally bound through dispute settlement mechanism and implemented by all WTO members. Also, through analyzing cases, results were indicated that Korea wins a lawsuit against the matter of shipbuilding subsidy whereas losing the lawsuit against the matter of DRAM subsidy. It means that the case of shipbuilding subsidy do not violation WTO ASCM and the case of Hynix DARAM is against WTO ASCM. Additionally, as we see the dispute cases concerned Korean industry, it is necessary that government should operate subsidies which were provided for certain governmental policy as consisted with WTO ASCM.

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Factors Influencing Policy to Subsidy Regulatory of Smartphone on Purchase Decision (스마트폰 보조금 규제 정책이 구매결정에 미치는 영향)

  • Nam, Soo-Tai
    • Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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    • pp.136-138
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    • 2015
  • Recently, with the rapid expansion of the mobile phone, such as the high price of the smartphone is being constantly handset subsidies at issue in the social harm caused by excessive competition in the mobile communications market. In this research, we aim to analyze factors influencing of the policy to subsidy regulatory on decision to continue purchasing intention of consumers. Predictor factors were selected the perceived usefulness, the perceived ease of use and the policy to subsidy regulatory on the previous study. Participants of this study be going to 200 mobile users in Busan Gyeongnam and Jeonbuk province in accordance with convenience sampling. IBM SPSS Statistics 19 were employed for descriptive statistics, Smart PLS(partial least squares) was employed for confirmatory factor analysis and path analysis of casual relationship among variables and effect. This study suggests practical and theoretical implications based on the results.

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The analysis on governmental subsidizing program for the distribution cost of agro-food exportation (농축산물 수출 물류비의 지원효과 검증)

  • Kim, Kyung-Phil;Kim, Soung-Hun
    • Korean Journal of Agricultural Science
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    • v.38 no.1
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    • pp.173-181
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    • 2011
  • Korean government has executed some programs to support producers and/or exporters for the promotion of agro-food exportation. Especially, governmental subsidizing program about the distribution cost for agro-food exportation shows positive effects. However, this subsidy should be changed or partly abolished due to the low effectiveness of subsidy. The goal of this paper is to analyze the effectiveness of governmental subsidy and to present the agro-food products with the low effects of subsidizing program. As the results of analysis, the subsidy for several products, including Ginseng drinks, Paprika, and Chrysanthemum, might be considered to be stopped due to low effectiveness.

On Restructuring of the Debates on Child Care Financing in Reflection of Changing Policy Surrounding in Korea: with Burchardt's Model (우리나라의 보육정책 환경 변화에 따른 재정지원방식 논쟁의 재구조화 - Burchardt의 모델을 중심으로 -)

  • Baek, Sun-Hee
    • Korean Journal of Social Welfare
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    • v.57 no.1
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    • pp.5-30
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    • 2005
  • This article attempts to restructurize the current arguments on how to change the method of financing child care programme, which is currently under discussion in Korea. There has been a series of changes in Korean child care policy, such as the amendment of Child Care Act, the transition of its responsible administrations, adoption the child care policy as a national agenda. In these changes, new needs for child care financing method comes out with a new direction of child care policy and a plan of expansion of finances. That's the transition from 'facility-centered subsidy' to 'child-centered subsidy'. This article redefine it as the arguments about 'supply-side subsidy' vs. 'demand-side subsidy'. To analyse the different traits of two branches of arguments, this article reviews the social welfare models, and has come to the conclusion that the Burchardt's model is appropriate to explain the financing debates. Thus, the analysis the traits of the two perspectives is based on three dimensions i. e. service provision, financing and decision making according to the Burchardt's model. This also examines how the two sides is connected to the discussion of publicity and quality improvement of child care service. Through this approaches and analysis, this helps us restructurize the debates on the method of financing from the present superficial arguments.

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An Analysis of Relationship between R&D Policies and Firm R&D Expenditures: Focused on R&D Subsidies and Tax Incentives (R&D 지원제도와 기업 R&D 지출액간 관계 분석: 정부 R&D 보조금과 세제혜택을 중심으로)

  • Suh Kyoo-Won;Lee Chang-Yang
    • Journal of Technology Innovation
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    • v.14 no.1
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    • pp.101-118
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    • 2006
  • The relationship between R&D Polices(R&D subsidy, tax incentives) and firm R&D expenditures is analyzed through firm's profit maximization function. As a result, the relationship between R&D policies and fmn R&D expenditures is determined by the relationship between firm R&D expenditures and market price. In case of major innovation which cause the fall of market price, the elasticity R&D subsidy and firm R&D expenditures is negative(substitution). In case of minor innovation which cause the rise of market price, the elasticity R&D subsidy and firm R&D expenditures is positive(complement). Tax incentives is bring about the increase of firm R&D expenditures. R&D subsidy and tax incentives are substitutively influenced at firm R&D expenditures.

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