• Journal of Korea Trade
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• v.27 no.5
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• pp.113-136
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• 2023

Purpose - Global production chains and their impacts on economic growth have drawn extensive attention from researchers. Close relationships among global production chains, export and economic growth have been illuminated, as evidenced by the fast and stable economic growth of East Asian economies. These economies perform various roles within global production chains using offshoring, in which the impact of import on domestic gross output is as strong as that of export. The impact of import on economic growth would depend on whether imported inputs substitute or complement domestic inputs production, which is likely to vary according to individual countries' functions within global production chains. The economic growth of concerned countries would also be diverse. However, little attention has been paid to the impact brought by imports compared to its significance. Design/methodology - The principal methodology used in this paper is structural decomposition analysis (SDA), widely chosen to elucidate the impact of various factors on domestic gross output using input-output tables. This paper extracts trade data of six Asian economies from the World Input-Output Database (WIOD) 2016 release that covers 43 countries for the period 2000-2014. The extracted data is then categorised into 37 sectors. First, this paper calculates the Feenstra-Hanson Offshoring Index (OSI) of each country. It then applies SDA to measure the changes in each economy's gross output, export, import input coefficients, and domestic input coefficients. Finally, after taking the first difference from pooled time-series data, it estimates the correlations between imported input coefficients and OSI using the ordinary least square (OLS) method. Findings - The main findings of this paper can be summarised as follows. Firstly, all six countries have increasingly engaged in global production chains, as evidenced by the growing size of OSI. Secondly, there are negative correlations in five countries except Japan, with sectoral differences. Thirdly, changes in import input coefficients are not negative in all six countries, indicating that offshoring does not necessarily substitute for domestic inputs production but does complement it and, therefore, fosters their economic growth. This is observed in China, Indonesia, Korea and Taiwan. Offshoring has led to an increase in the use of imported inputs, which has, in turn, stimulated domestic inputs production in these countries. Originality/value - While existing studies focus on the role of export in evaluating the impact of participating global production chains, this paper explicitly examines the unexplored impact of import on domestic gross output by considering both the substitution and the complementary effect, using the WIOD. The findings of this paper suggest that Asian economies have achieved fast and stable economic growth not only through successful export management but also through effective import management within global production chains. This paper recommends that the Korean government and enterprises carefully choose offshoring strategies to minimise disruption to domestic production chains or foster them.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.16 no.3
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• pp.50-57
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• 2008

This paper analyse the economic inducement effects of aviation industry using Input-Output Model. For measuring economic inducement effects of aviation industry on korean economy, this paper divides air transport industry as two - manufacturing industry and service industry. we also use Input-Output Table of year 1990 through 2003 from Bank of Korea. Empirical results tells that aviation manufacturing industry have high product inducement effects to national economy although its low value-added coefficient such as 0.486 for aviation manufacturing industry and 0.447 for aviation service industry. public R&D doesn't have much effect to each of aviation industries.

• Journal of Society of Preventive Korean Medicine
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• v.8 no.1
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• pp.163-186
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• 2004

The purpose of this parer is to identify the input-output structure of oriental medicine and its alternative medicine industries in an inter-industry context and to estimate its forward and backward effects on macroeconomic variables such as production, employment and price level. Input-output tables released by The Bank of Korea were used as data in this research and inter-industry analysis was adopted as research methodology. The industry takes less share of production, price and trade in a Korean economy, compared with other industry. However, the industry's capability of creating value added is estimated to be well above that of other industry and that of making new employments is as more than 4 times as other industries. This result gives us policy implications that the government should enhance its subsidy policy and economic (tax) incentives for oriental medicine and its related alternative medicine industries.

• Journal of Korean Society of Rural Planning
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• v.15 no.2
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• pp.69-80
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• 2009

The purpose of this paper is to estimate the regional economic impact of reverse mortgage system based on farmer's net asset of house and farmland together. The regional economic impact was estimated by using inter-regional input-output model. Major findings are as follows: 1) The result of input-output analysis shows that 49,130 million won of production effect, 20,040 million won of value added effect, and 24,759 number of employment effect, 2) Since the result shows that the elderly spend most of the reverse mortgage money for their living expenses, it seems necessary to adopt net asset based reverse mortgage system to improve and stabilize farmers' living conditions and regional economy.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.85-94
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• 2021

Infrastructure capacities are essential elements and one of the sustainable lines to drive economic growth. Infrastructure development, both physical and social, is vital to sector-wise economic development. However, there is limited evidence of how infrastructure development in certain sectors benefits the economy as a whole. This study explains the relationships between infrastructure and economic growth in selected middle-income Asian countries, highlighting the essential criteria to benefit from both physical and social infrastructure, as well as sectoral (agriculture, industry, and services) economic output. The research uses the data from 1990 to 2020 for empirical estimations. The study used Levin, Lin, & Chu test, ADF- Fischer chi- Square, and PP- Fischer Chi-Square to test unit root and to observe the stationary nature of the panel. Padroni and Kao cointegration is applied to check the cointegration among different panes. A Fully Modified OLS was employed for checking the association between physical and social infrastructure and economic growth. Results show that physical and social infrastructure negatively impact sectoral output in Asia's middle-income countries. Apart from infrastructure the per capita GDP growth, tax to GDP ratio, and population growth shows a simultaneous relation between infrastructure and sectoral economic growth.

• East Asian Economic Review
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• v.21 no.4
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• pp.295-315
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• 2017

This paper derives the gravity equation with intermediate goods trade. We extend a standard monopolistic competition model to incorporate intermediate goods trade, and show that the gravity equation with intermediates trade is identical to the one without it except in that gross output should be used as the output measure instead of value added. We also show that the output elasticity of trade is significantly underestimated when value added is used as the output measure. This implies that with the conventional gravity equation, the contribution of output growth can be substantially underestimated and the role of trade costs reduction can be exaggerated in explaining trade expansion, as we demonstrate for the case of Korea's trade growth between 1995 and 2007.

• East Asian Economic Review
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• v.16 no.1
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• pp.97-115
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• 2012

This paper investigates the relationship between financial markets and output growth for a panel of 27 Asian countries over 1960-2009. It utilizes the recently-developed panel cointegration techniques to test and estimate the long-run equilibrium relationship between real GDP and financial development proxies. Real GDP and financial development variables are found to have unit roots and to be cointegrated, based on various panel unit root tests and panel cointegration tests. We find that there is a statistically significant positive bi-directional cointegrating relationship between financial development and output growth by three distinct methods of panel cointegration estimation. Empirical findings suggest that financial market development promotes output growth and in turn output growth stimulates further financial development.

• Journal of Information Technology Services
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• v.17 no.1
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• pp.47-58
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• 2018

In this study, we define Fintech services as review previous literatures and identify the traditional Fintech service market for analysing the economic effects of the Fintech Industry by using the 2014 Input-Output Table. We can identify the current market of Fintech industry which consists of VAN, PG, financial SW, mobile banking and Fintech R&D and we conduct Input-Output analysis by using non-competitive import model. The Input-Output analysis results show that production inducement effect and front/rear chain effect of the Fintech Industry are below average of other industries. This is because the Fintech technology and industry were emerging in Korea at that time (2014), and thus the ripple effects are not significant. Especially, due to the existing white risk financial regulation, new business opportunities have not been open to adapt new ICT-financial technologies. Therefore, when the business ecosystem is build through deregulation and platforms of the financial sector, it is expected that the Fintech Industry will have a high ripple effect. In this study, we identify the current market of Fintech industry from ICT indusries and conduct Input-Output analysis. The economic effects of the Fintech industry are not remarkable, but it is significant to identify the emerging market and present the basic analysis of issued research field.

• The Korean Journal of Applied Statistics
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• v.21 no.1
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• pp.125-140
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• 2008

The purpose of this study is to analysis the economic impacts of regional cultural festival via using the regional input-output model. In order to achieve this purpose, calculate output, value added and employment multiplier impacts of the Jeonju International Film Festival. The impacts of the JIFF on regional economic follow as ; Output is 112 hundred million won, value added is 53 hundred million won and employes is 254 labors. We need a new following strategies to obtain highly positive impacts from regional cultural festival. It needs to made networks among sight-seeing places, cultural remains, restaurants, hotels and entertainment institutions, in order to made visitors and customers expend much.

• 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.