This paper investigates the total factor productivity(TFP) gain of whole economy due to the removement of product, capital and labor market distortions in order to emphasize the importance of resource allocation efficiency improvement for the sustaining growth of Korean economy. According to value-added model using annual series of 1998-2021, the TFP gain, though showing downward trend since 1998, amounts to 22.4% in 2021. Also, based on the gross-output model using year 2019 input-output table, the TFP gain showed 23.0%. Meanwhile, the contribution of manufacturing to the TFP gain of whole economy is larger than that of service sectors and, in view of the magnitude of TFP gain, the effect of removing each market distortion seems to be large in the order of capial, labor and product market distortions.

Errors may occur when applying the existing market dominance analysis framework based on market share to the online platform. The leading cause is that indirect network externalities exist on online platforms which bear properties of a two-sided market, and they function at the core of the market power. Therefore, some have been raising the opinion that the judgment factors unique to the two-sided market should be comprehensively reflected in addition to market share in regards to the online platform market dominance method of analysis. Based on this perspective, this study analyzes whether the cross-subsidization strategy analysis for identifying the process of securing indirect market externalities can become a complementary measure for market dominance analysis.

In this study, the top three food delivery apps (Baedal Minjok, Yogiyo, and Coupang Eats) were selected as the subjects of analysis. Using the categorization of cross-subsidization strategy as the analysis framework, the process of securing indirect network externalities of the delivery apps was identified through cross-subsidization strategy analysis at each phase of the product life cycle model.

The results of the cross-subsidization strategy analysis indicated that after securing direct network externalities with consumers and launching businesses using a loss leader strategy in the introduction stage, delivery apps further secure indirect network externalities using a freemium strategy in the growth stage. During this process, unfair practices, expansion of the platform business field, and the like were performed in order to make the competitive landscape more favorable.

This study suggests cross-subsidization strategy analysis as a complementary measure of market dominance analysis. If the process of securing indirect network externalities of online platforms can be monitored through crosssubsidization strategy analysis, then identifying how fairly and impartially online platforms secure them becomes feasible. Complementing crosssubsidization strategy analysis that focuses on the competitive process with existing competitive outcome-oriented market dominance analysis contributes to the rational regulation of online platforms.

This study empirically analyzed the effect of homogeneous or heterogeneous agglomeration of micro businesses on the residential value. Because houses are fixed in location, environmental factors can affect the price of houses. In this regard, a number of studies have been conducted to identify various environmental factors that affect housing prices. However, it is judged that there is insufficient research on the effect of agglomeration of micro businesses on the residential value, which reduces search costs and travel costs that occur in the consumption process by providing goods and services in close to local residents. Therefore, this study analyzed the relationship between the number and diversity of micro businesses and the monthly rent per square meter using data from the first quarter of 2016 to the second quarter of 2021 in Daejeon. For the analysis method, a panel regression analysis model and a panel VAR model were used.

As a result, both the number and diversity of micro businesses were confirmed to improve the rent. However, as a result of analyzing the panel VAR model, it was confirmed that the number of micro businesses does not directly affect the rent, but indirectly affects the rent by affecting diversity.

The results suggest that it is necessary to pay attention to the role of micro businesses in positively affecting the residential value of the region in the current situation where the population decline in non-metropolitan areas is ongoing. However, in this study, various control variables were not considered, and the analysis is limited to Daejeon. It is judged that additional research is needed to verify the generalizability of the results.

   This paper reconsiders the question of third-degree input price discrimination assuming a Mussa-Rosen(1978) style vertical differentiation between downstream firms. We show that, in contrast with the traditional analyses of homogeneous goods, input price discrimination can improve the allocation efficiency of differentiated products and with this additional gain total welfare may increase even without an expansion of total quantity. Also, the effect on consumer surplus is quite different from the previous result obtained for price discrimination in a final-good market. These results shed new light on public policy toward input price discrimination.

The purpose of this study is to analyze the determinants and improvement measures of R&D efficiency, focusing on the manufacturing industry. In this paper, a Data Envelopment Analysis method was used to measure the R&D efficiency by technology level in the manufacturing industry, and the determinants of R&D efficiency were derived using the Tobit regression analysis. As a result of the analysis, The R&D efficiency of the manufacturing industry was found to need improvement, and the results of the inefficiency cause analysis confirmed that there was a difference in the cause of inefficiency by technology level. The results of this study can be used as basic data for the government’s manufacturing R&D efficiency policy.

This paper analyzes the effect of the expansion of private companies’ LNG imports in the petrochemical industry on the city gas demand function. A characteristic feature of previous studies on industrial city gas demand is that the price elasticity of the petrochemical industry city gas demand has risen significantly since the mid-2010s. As the main factors, the expansion of dual boilers in the petrochemical industry and the usage of city gas for hydrogen production were pointed out. As a result of our analysis, we confirm that the relative price elasticity of city gas demand in the petrochemical industry increased significantly from about 1 to about 3 after mid-2010. However, what was newly discovered is that the relative price elasticity decreased sharply to below 0.3 again with the rapid increase in private companies’ LNG imports by the petrochemical industry after 2018. This is analyzed to be because, in the petrochemical industry, city gas consumption, which has a high price elasticity, has been replaced with directly imported LNG. Therefore, it can be said that the overall city gas supply and demand stability can be improved if consumers with high price sensitivity in city gas demand replace their city gas consumption with directly imported LNG.

In December 2020, the government announced the “2050 Carbon Neutral Promotion Strategy”. For the paradigm shift to a carbon-neutral society, it is necessary to prepare an evaluation index to see whether our society is effectively reducing greenhouse gases, considering two goals such as carbon reduction and economic growth. This study evaluates the carbon productivity of firms participating in the KETS by estimating total factor carbon productivity based on the stochastic frontier model and the Malmquist productivity index. In this study, carbon productivity is indexed by 26 detailed industries, and productivity levels across industries are compared and analyzed to present efficient carbon productivity improvement schemes for specific industries. From the empirical results, it is confirmed that the carbon productivity in Korea is higher than 1 on average during the observation period, resulting in a conclusion that productivity has been steadily increasing compared to the previous year, but the increase rate has been steadily slowing. It is also revealed that technological change is a main driver to increase the total factor carbon productivity. The industries with high carbon productivity are analyzed in the order of refinery, complex energy, telecommunications, food and beverage and aviation industries among the total 26 industries. On the other hand, cement, waste and mining industries are analyzed as those with low carbon productivity.