• Title/Summary/Keyword: Backward Forward Linkage

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A Study on the Backward and Forward Linkage Effects among Korea, China and Japan by International Input-Output Analysis (한·중·일 3국간 전후방연쇄 효과의 변화와 특징)

  • Kim, Hong-Youl;Cui, Hua-Wei
    • International Commerce and Information Review
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    • v.17 no.1
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    • pp.241-264
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    • 2015
  • This study analyzed backward and forward linkage effects among Korea, China and Japan by International Input-Output(I-O) tables. Index of dispersion power and sensitivity degrees were measured after making 'Korea, China and Japan International Input-Output(I-O) Table'. The study showed that the inter-dependency between Korea and China was increased while the influences of Japanese was decreased among the 3 countries. Under the de-industrialization, the 3 countries decreased influences over their domestic industry but increased the inter-dependency over the other countries. In addition, backward and forward linkage effects was significantly high in some industrial sectors such as petroleum, transportation, machinery equipment, service and public administration in 3 countries. In the case of service, the linkage effects among the 3 countries increased which means that the roles and inter-dependency of service was also gradually increasing in 3 countries.

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An Analysis of Economic Ripple Effect on the Knowledge Service Industry (지식서비스산업의 경제적 파급효과 분석)

  • Kim, Pang-Ryong;Kim, Young-Eun
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.18 no.4
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    • pp.771-778
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    • 2014
  • In this study, we have measured the effects on production inducement, added value inducement, employment inducement and backward and forward linkage regarding the knowledge service industry in Korea. It turns out that the knowledge service industry greatly contributes to increase of added value and employment creation while highly withholds to effect on production inducement and backward and forward linkage effects. In recent, government seeks out new growth driver out of the knowledge service industry. We have found the fact that its direction should be 'production growth of the knowledge service industry' through this study.

Economic Effects of the Port Industries (항만산업의 경제적 파급효과)

  • Kim, An-Ho;Gi, Seong-Rae
    • Journal of Korea Port Economic Association
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    • v.21 no.4
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    • pp.141-160
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    • 2005
  • This paper estimate and analyze the economic effect of the port industries as well its production inducement coefficient, effect ratio and response ratio using above-mention input-output analysis. The results of analysis is that the production inducement effects and the forward and backward linkage effects of port industries sectors are evaluated low evaluations. This results is not the port industry doesn't have low effects and low contributions to Korea economy, port industries are more used in the field of export and import sectors than domestic demand and supply sectors. Accordingly, the import inducement coefficients of shipping industry is most high among the 404 detailed sectors.

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Analysis of the Interregional Trade and Industrial Linkage in Incheon (인천경제의 지역간 교역구조와 산업연관분석)

  • Yun, Kap-Sik
    • Journal of the Economic Geographical Society of Korea
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    • v.11 no.1
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    • pp.45-58
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    • 2008
  • This study aims to analyze the interregional trade and industrial linkage between the Incheon regional economy and the rest of the nation. An interregional input-output table developed by the Bank of Korea's Incheon branch(2007) was employed for this. The analysis of interregional trade shows that Incheon regional economy is strongly interrelated with Seoul and Gyeonggi regional economies. The Incheon's interregional relationship with other regions was analyzed in terms of output dependency rate, output inducement rate, backward linkage, and forward linkage. The results indicated that while the output of Incheon is more dependent on final demands in Seoul and Gyeonggi, changes of the final demand in Incheon cause more output in the rest of nation than that in Seoul and Gyeonggi. Also, while Incheon's backward linkage to Seoul and Gyeonggi is weaker than that to the rest of nation, Incheon's forward linkage to Seoul and Gyeonggi is stronger than that to the rest of nation.

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Input-Output Analysis of Service Robot Industry (서비스 로봇산업의 산업연관분석)

  • Seong-eun Ryu;In-Jae Jeong
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.45 no.4
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    • pp.142-149
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    • 2022
  • This study attempts to analyze the economic impact of the service robot industry using Input-Output analysis, which is conducted based on Demand-driven model, the Leontief price model, the Backward and Forward Linkage Effects, and the Exogenous Methods. In a Demand-driven model analysis, we can conclude that the service robot industry contains characteristics of both the manufacturing industry and the service industry, which causes a positive impact on the overall industry by compensating for the weaknesses of the two industries. The Leontief price analysis indicates when wages in the service robot industry increase, prices related to robot manufacturing also increase. Also, when profits in the service robot industry increase, prices related to service provision increase, too. The Backward and Forward Linkage Effects analysis shows that the service robot industry is highly sensitive to the current economic condition and has a great influence on the service industry. The service robot industry can highlight the aspect of service characteristics when the manufacturing industry is in recession and vice versa. In addition, the service robot industry can be regarded as a value-adding and domestic economy promoting industry which utilizes knowledge of information and communication technologies. It is important to foster the service robot industry in South Korea, which is in economic recession to provide an opportunity to stimulate the growth of both service and robot industries.

An Empirical Analysis of the Bilateral Linkages between Foreign Direct Investment and Global Value Chains (해외직접투자와 글로벌 가치사슬의 양자간 연계성 실증 분석)

  • Hyun-Jung Choi;Hyun-Hoon Lee
    • Korea Trade Review
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    • v.47 no.4
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    • pp.233-254
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    • 2022
  • Although there is growing literature evidence of linkages between global value chains (GVCs) and foreign direct investment (FDI), the results are mixed and ambiguous by geographic dimension, time period and sectoral scope. Moreover, bilateral approaches on these connections have been rarely analyzed. In this context, we investigate the effect of bilateral greenfield FDI and cross-border M&A on GVC linkages between host countries and source countries. We match three-year averages of bilateral FDI and UNCTAD-Eora GVC value-added data from 2005 to 2019 between 37 OECD sources and 176 host countries (37 OECD versus 139 non-OECD countries). In the structural gravity model, the empirical specification includes bilateral and country-period fixed effects and uses a Poisson Pseudo-Maximum Likelihood (PPML) estimator. We find that greenfield and M&A FDI promote forward and backward GVC linkage for all sectors between OECD countries, whereas greenfield FDI promotes backward GVC linkage between OECD and non-OECD countries. In addition, the results indicate that the degree of influence of GVCs by FDI flows is greater for forward GVC than backward GVC among OECD countries.

A Comparative Study on Economic Effects on the Korean Economy by Transport Mode Using Input-Output Analysis (산업연관분석에 의한 운송부문별 국민경제적 파급효과의 상호비교 분석)

  • Lee, Tae-Woo;Chang, Young-Tae;Shin, Sung-Ho
    • Proceedings of the Korea Port Economic Association Conference
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    • 2006.08a
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    • pp.103-124
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    • 2006
  • This paper is concerned with a comparative study on the economic effects upon the Korean economy by transport mode, ie road, rail, air, and coastal and inland water transportation between 1990 and 2000, using input-output analysis. The economic effects consist of backward and forward linkage effects, production inducing and import-inducing effects. The data employed for this study come from the Bank of Korea database for Input-Output structure of the Korean economy. The major findings in this study are, among others:(1) the power of dispersion(=backward linkage effect) of coastal and inland water transportation sector is the highest among the four transport sectors, while road cargo transport mode showed the highest the degree of sensitivity (=forward linkage effect); (2) rail cargo transport recorded the highest production inducing effects; and (3) air transport mode achieved the highest ranking in the import-inducing effects.

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A Study on the Economic Effects of Renewable Energy Industry (신재생에너지산업의 경제적 파급효과 분석)

  • Kwon, Seung Moon;Kim, Ha Na;Jeon, Eui Chan
    • Journal of Climate Change Research
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    • v.7 no.1
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    • pp.59-68
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    • 2016
  • The world's major countries have focused on the renewable energy industry as the solution to climate change and the energy crisis. Nevertheless, there are no studies on the economic effects of the renewable energy industry. This study analyzed the economic effects of Korea's renewable energy industry by using the 2010 Input-Output Table. It is estimated that Korea's renewable energy industry made a production-induced effect of 2.0262 won, and a value-added-induced effect of 0.6138 won through an increase in output growth of 1 won, and an employment-induced effect of 2.3046 labors through an increase in output growth of 1 billion won. Both the effect ratio and the response ratio were greater than 1, which means the renewable energy industry is an intermediate manufacturing industry whose forward linkage effect and backward linkage effects are large. These results show differences with previous studies that classified electricity sector and renewable energy industry into final primary production industries. It is expected that the economic effects of the renewable energy industry will become greater in the future. Therefore, research on statistics related to the renewable energy industry is needed for more precise analysis.

An Analysis on the Economic Effects of the Medical and Measuring Instrument Industry (한국 의료 및 측정기기산업의 투자파급효과 분석)

  • Suh, Jeong-Kyo
    • The Korean Journal of Health Service Management
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    • v.6 no.3
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    • pp.219-229
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    • 2012
  • In these days, the interest on medical industry is increasing around the world. This paper attempts to estimate the economic effects of the medical and measuring instrument industry through the Input-Output Analysis. Especially, 78*78 Sector Tables were used as the first analysis tool. So then, 79*79 Sector Tables adjusted were used for that industry. The main analysis tools of this study are comparing and analyzing backward and forward linkage effect, the induced effect of the self industry and other industries and the induced coefficients such as products, value-added, employee's pay, sales surplus, employment. According to the result of analysis, the medical and measuring instrument industry has great economic impacts which affects the major macroeconomic factors such as production and backward linkage effect. And the induced effects of the self medical and measuring instrument industry are significant compared to other industries in aspects of production, employee's pay and sales surplus.

An Analysis on the Economic Effects of the Korean Cosmetic Industry (우리나라 화장품산업의 경제적 파급효과 분석)

  • Suh, Jeong-Kyo
    • The Korean Journal of Health Service Management
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    • v.7 no.3
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    • pp.57-69
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    • 2013
  • In these days, the interest on health industry is increasing around the world. This paper attempts to estimate the economic effects of the Cosmetic Industrydusing the Input-Output Analysis. Especially, 78*78 Sector Tables were used as the first analysis tool. So then, 79*79 Sector Tables adjusted were used for that industry. The main analysis tools of this study are comparing and analyzing backward and forward linkage effects, the induced effects of the self industry and other industries and the induced coefficients such as product, value-added, job and employment. According to the result of analysis, the cosmetic industry has great economic impacts which affects the major macroeconomic factors such as product, value added and backward linkage effect. And the induced effects of the self cosmetic industry are significant compared to other industries in aspects of product, value-added, and employment.