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http://dx.doi.org/10.5855/ENERGY.2016.25.3.001

The Economic Effect of Industrial Investment on North Korea Natural Gas and Coal  

Kim, Hyoungtae (KOGAS Research Institute New Energy Technology Center, Dept. of Industrial and Systems Engineering, Kongju National University)
Chae, Jungmin (KOGAS Research Institute New Energy Technology Center, Dept. of Industrial and Systems Engineering, Kongju National University)
Cho, Youngah (KOGAS Research Institute New Energy Technology Center, Dept. of Industrial and Systems Engineering, Kongju National University)
Publication Information
Journal of Energy Engineering / v.25, no.3, 2016 , pp. 1-8 More about this Journal
Abstract
North Korea is currently undergoing an economic crisis of industrial productivity reduction, which resulted from decreased energy production and economic sanctions due to conflicts with the international society. This paper examined the technological status of North Korea's natural gas and coal industries which are essential sectors for recovery of the economy and North-South cooperation on energy industry. This paper also analyzed investment strategies in North Korean energy industries and calculated the size of economic ripple effect of the investment on North and South Korea. In order to analyze the effect of the investment on North Korean economy, we constructed an inter-industry relation table of North Korea for year 2014 and used an input-output model. The ripple effect of the investment in natural gas and coal industries turned out to be 1.012 billion dollars and 2.742 billion dollars respectively. In order to analyze the ripple effect of the investment on South Korean economy, we constructed an inter-industry relation table of South Korea for year 2013 and used a demand-driven model for inter-industry analysis. As a result, production, added-value and employment inducement coefficients of the investment were calculated as 2.02073, 0.62697 and 8.99409 for the natural gas industry and 2.02130, 0.62701 and 9.00413 for the coal industry respectively.
Keywords
natural gas industry; coal industry; LNG Combined Power Plant; Input-Output analysis; economic effect; North-South Korea economic cooperation;
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Times Cited By KSCI : 1  (Citation Analysis)
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