International Journal of Highway Engineering (한국도로학회논문집)

Korean Society of Road Engineers (한국도로학회)
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Study on The Influence of Road Capital to Industry and Productivity Growth in South Korea

한국 도로 자본이 산업에 미친 영향과 생산성 분석

  • Kook, Woo Kag (Department of Transportation System Research, Seoul Institute)
  • 국우각 (서울연구원 교통시스템연구실)
  • Received : 2013.01.22
  • Accepted : 2013.01.30
  • Published : 2013.04.15
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Abstract

PURPOSES : This study is to suggest the Influence of road capital to industry and productivity growth in South Korea. METHODS : Based on the literature review, The relevant policy questions addressed in this report are : cost reduction and Scale elasticities of road, effect of road capital stock on demand for labor, capital and materials, marginal effect of road, industry TFP growth decomposition. RESULTS : The marginal benefits of the road capital at the industry level were calculated using the estimated cost elasticities. Demand for the road capital services varies across industries as do the marginal effects. The marginal benefits are positive for the principal industries. This suggests that for these industries the existing stock of road capital may be under supplied. The contribution of road capital to TFP growth is positive in principal industries. The main contribution of road capital is in the manufacturing industries ; the magnitudes of contribution varies among industries. These results indicate that growth in exogenous demand is most important contributor to TFP growth. CONCLUSIONS : The road capital have a significant effect on employment, private capital and demand for materials inputs in all industries. At a given level of output, an increase in road capital lead to variety to demand for all inputs in all industries.

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References

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