• Title/Summary/Keyword: Production inducement effect

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Analysis of Forestry Structure and Induced Output Based on Input - output Table - Influences of Forestry Production on Korean Economy - (산업관련표(産業關聯表)에 의(依)한 임업구조분석(林業構造分析)과 유발생산액(誘發生産額) -임업(林業)이 한국경제(韓國經濟)에 미치는 영향(影響)-)

  • Lee, Sung-Yoon
    • Journal of the Korean Wood Science and Technology
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    • v.2 no.4
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    • pp.4-14
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    • 1974
  • The total forest land area in Korea accounts for some 67 percent of the nation's land total. Its productivity, however, is very low. Consequently, forest production accounts for only about 2 percent of the gross national product and a minor proportion of no more than about 5 percent versus primary industry. In this case, however, only the direct income from forestry is taken into account, making no reference to the forestry output induced by other industrial sectors. The value added Or the induced forestry output in manufacturing the primary wood products into higher quality products, makes a larger contribution to the economy than direct contribution. So, this author has tried to analyze the structure of forestry and compute the repercussion effect and the induced output of primary forest products when utilized by other industries for their raw materials, Hsing the input-output table and attached tables for 1963 and 1966 issued by the Bank of Korea. 1. Analysis of forestry structure A. Changes in total output Durng the nine-year period, 1961-1969, the real gross national product in Korea increased 2.1 times, while that of primary industries went up about 1. 4 times. Forestry which was valued at 9,380 million won in 1961, was picked up about 2. 1 times to 20, 120 million won in 1969. The rate of the forestry income in the GNP, accordingly, was no more than 1.5 percent both in 1961 and 1962, whereas its rate in primary industries increased 3.5 to 5.4 percent. Such increase in forestry income is attributable to increased forest production and rise in timber prices. The rate of forestry income, nonetheless, was on the decrease on a gradual basis. B. Changes in input coefficient The input coefficient which indicates the inputs of the forest products into other sectors were up in general in 1966 over 1963. It is noted that the input coefficient indicating the amount of forest products supplied to such industries closely related with forestry as lumber and plywood, and wood products and furniture, showed a downward trend for the period 1963-1966. On the other hand, the forest input into other sectors was generally on the increase. Meanwhile, the input coefficient representing the yolume of the forest products supplied to the forestry sector itself showed an upward tendency, which meant more and more decrease in input from other sectors. Generally speaking, in direct proportion to the higher input coefficient in any industrial sector, the reinput coefficient which denotes the use of its products by the same sector becomes higher and higher. C. Changes in ratio of intermediate input The intermediate input ratio showing the dependency on raw materials went up to 15.43 percent m 1966 from 11. 37 percent in 1963. The dependency of forestry on raw materials was no more than 15.43 percent, accounting for a high 83.57 percent of value added. If the intermediate input ratio increases in any given sector, the input coefficient which represents the fe-use of its products by the same sector becomes large. D. Changes in the ratio of intermediate demand The ratio of the intermediate demand represents the characteristics of the intermediary production in each industry, the intermediate demand ratio in forestry which accunted for 69.7 percent in 1963 went up to 75.2 percent in 1966. In other words, forestry is a remarkable industry in that there is characteristics of the intermediary production. E. Changes in import coefficient The import coefficient which denotes the relation between the production activities and imports, recorded at 4.4 percent in 1963, decreased to 2.4 percent in 1966. The ratio of import to total output is not so high. F. Changes in market composition of imported goods One of the major imported goods in the forestry sector is lumber. The import value increased by 60 percent to 667 million won in 1966 from 407 million won in 1963. The sales of imported forest products to two major outlets-lumber and plywood, and wood products and furniture-increased to 343 million won and 31 million won in 1966 from 240million won and 30 million won in 1963 respectively. On the other hand, imported goods valued at 66 million won were sold to the paper products sector in 1963; however, no supply to this sector was recorded in 1963. Besides these major markets, primary industries such as the fishery, coal and agriculture sectors purchase materials from forestry. 2. Analysis of repercussion effect on production The repercussion effect of final demand in any given sector upon the expansion of the production of other sectors was analyzed, using the inverse matrix coefficient tables attached to the the I.O. Table. A. Changes in intra-sector transaction value of inverse matrix coefficient. The intra-sector transaction value of an inverse matrix coefficient represents the extent of an induced increase in the production of self-support products of the same sector, when it is generated directly and indirectly by one unit of final demand in any given sector. The intra-sector transaction value of the forestry sector rose from 1.04 in 1963 to 1, 11 in 1966. It may well be said, therefore, that forestry induces much more self-supporting products in the production of one unit of final demand for forest products. B. Changes in column total of inverse matrix coefficient It should be noted that the column total indicates the degree of effect of the output of the corresponding and related sectors generated by one unit of final demand in each sector. No changes in the column total of the forestry sector were recorded between the 1963 and 1966 figures, both being the same 1. 19. C. Changes in difference between column total and intra-sector transaction amount. The difference between the column total and intra-sector transaction amount by sector reveals the extent of effect of output of related industrial sector induced indirectly by one unit of final demand in corresponding sector. This change in forestry dropped remarkable to 0.08 in 1966 from 0.15 in 1963. Accordingly, the effect of inducement of indirect output of other forestry-related sectors has decreased; this is a really natural phenomenon, as compared with an increasing input coefficient generated by the re-use of forest products by the forestry sector. 3. Induced output of forestry A. Forest products, wood in particular, are supplied to other industries as their raw materials, increasng their value added. In this connection the primary dependency rate on forestry for 1963 and 1966 was compared, i. e., an increase or decrease in each sector, from 7.71 percent in 1963 to 11.91 percent in 1966 in agriculture, 10.32 to 6.11 in fishery, 16.24 to 19.90 in mining, 0.76 to 0.70 in the manufacturing sector and 2.79 to 4.77 percent in the construction sector. Generally speaking, on the average the dependency on forestry during the period 1963-1966 increased from 5.92 percent to 8.03 percent. Accordingly, it may easily be known that the primary forestry output induced by primary and secondary industries increased from 16, 109 million won in 1963 to 48, 842 million won in 1966. B. The forest products are supplied to other industries as their raw materials. The products are processed further into higher quality products. thus indirectly increasing the value of the forest products. The ratio of the increased value added or the secondary dependency on forestry for 1963 and 1966 showed an increase or decrease, from 5.98 percent to 7.87 percent in agriculture, 9.06 to 5.74 in fishery, 13.56 to 15.81 in mining, 0.68 to 0.61 in the manufacturing sector and 2.71 to 4.54 in the construction sector. The average ratio in this connection increased from 4.69 percent to 5.60 percent. In the meantime, the secondary forestry output induced by primary and secondary industries rose from 12,779 million Wall in 1963 to 34,084 million won in 1966. C. The dependency of tertiary industries on forestry showed very minor ratios of 0.46 percent and 0.04 percent in 1963 and 1966 respectively. The forestry output induced by tertiary industry also decreased from 685 million won to 123 million won during the same period. D. Generally speaking, the ratio of dependency on forestry increased from 17.68 percent in 1963 to 24.28 percent in 1966 in primary industries, from 4.69 percent to 5.70 percent in secondary industries, while, as mentioned above, the ratio in the case of tertiary industry decreased from 0.46 to 0.04 percent during the period 1963-66. The mining industry reveals the heaviest rate of dependency on forestry with 29.80 percent in 1963 and 35.71 percent in 1966. As it result, the direct forestry income, valued at 8,172 million won in 1963, shot up to 22,724 million won in 1966. Its composition ratio lo the national income rose from 1.9 percent in 1963 to 2.3 per cent in 1966. If the induced outcome is taken into account, the total forestry production which was estimated at 37,744 million won in 1963 picked up to 105,773 million won in 1966, about 4.5 times its direct income. It is further noted that the ratio of the gross forestry product to the gross national product. rose significantly from 8.8 percent in 1963 to 10.7 percent in 1966. E. In computing the above mentioned ratio not taken into consideration were such intangible, indirect effects as the drought and flood prevention, check of soil run-off, watershed and land conservation, improvement of the people's recreational and emotional living, and maintenance and increase in the national health and sanitation. F. In conclusion, I would like to emphasize that the forestry sector exercices an important effect upon the national economy and that the effect of induced forestry output is greater than its direct income.

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An Analysis on the Economic Impact of ICT Based Innovation within Creative Industries in South Korea (창조산업 내 ICT기반 혁신의 경제적 파급효과 분석)

  • Lee, Youngjoo;Kim, Byungchae;Lee, Yeonwoo
    • Journal of Technology Innovation
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    • v.23 no.3
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    • pp.341-372
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    • 2015
  • While creativity and innovation is the key to drive the creative economy in the South Korea, the development of analysis framework to evaluate the size and performance is limited. The present study suggests a framework and a method to assess economic impact of the creative economy using inter-industry analysis which employs input-output efficiencies populated by the Korean Bank and empirical data from the national informatization survey conducted by the National Information-society Agency(NIA). The results indicated that, as of 2013, despite of economy downturn, the creative innovation based on the information communication technology(ICT) had been significantly led the production, value-added, and employment inducement. The effect is predominant in the creative industry in an broad sense, that is, technology intensive manufacturing industry. Theoretical and policy implications are discussed.

The Effect of Deer Antler Herbal Acupuncture Control to Hyper-inflammatory Responses on Synovial Membrane by LPS-induced Arthritis (약용약침(藥茸藥鍼)이 LPS 유발(誘發) 관절염(關節炎)의 윤활관절막내(潤滑關節膜內) 과다염증반응(過多炎症反應) 조절(調節)에 미치는 영향(影響))

  • Chung, Yong-Re;Lee, Seung-Deok;Byun, Hyuk;Park, In-Shik;Jung, Chan-Yung;Lee, Chang-Hwan;Kim, Kap-Sung
    • Journal of Acupuncture Research
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    • v.24 no.4
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    • pp.167-181
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    • 2007
  • Objectives: To evaluate expression of MIF mRNA, MIF, $TNF-{\alpha}$, $IL-6R-{\alpha}$, STAT-3, $NF-{\kappa}B$ p65, COX-2 and iNOS, MMP-9mRNA after injecting deer antler herbal acupuncture solution in a LPS rat model. Methods: The experiment was divided in category of the control group, RA group, and NA group. RA was induced in the mice via injecting 300ug/kg LPS. The deer antler herbal acupuncture solution 50ug/kg was applied on $ST_{35}$(犢鼻) and EX-LE201(內膝眼) for 19days from $3^{rd}$ day of RA inducement. Results: 1. In the deer antler herbal acupuncture solution treated RAW 264.7cell, the mRNA expression of cytokines, RA related inflammation factors, such as the MIF, COX- 2, iNOS, and MMP-g reduced concentration dependently. 2. In the deer antler herbal acupuncture treated mice's synovial membrane, decrease in the cell replication of synovial joint cells, regeneration of blood vessel, fibrosis and fibroblastic cells expansion were observed. 3. Positive reaction of RA-related cytokines MIF, $TNF-{\alpha}$, $IL-6R-{\alpha}$, STAT3, COX-2, iNOS, $NF-\;{\kappa}B$ p65, MMP-9 was reduced. Conclusion : On the basis of the results, it was concluded that deer antler herbal acupuncture extract has significant protecting ability against acute progressive RA by inhibiting the production of MIF, as a top in cytokines related to inflammation.

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Policy Suggestions for Establishing Culture Technology Institute from Economic Point of View (경제성 관점에서 문화기술연구원설립에 대한 정책적 제언 -조직구조, 규모 및 설립시기를 중심으로-)

  • Lee, Yong-Kyu;Ju, Hye-Seong
    • The Journal of the Korea Contents Association
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    • v.11 no.10
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    • pp.257-266
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    • 2011
  • The establishment of Culture Technology Institute is now under discussion. In case of advanced countries (including USA, Japan and EU) practices market-oriented policies in the area of culture and entertainment industry. Therefore it is hard to find out Government-funded Institute which Korea could benchmark. In this situation, there are many different opinions about its organizational structure, size of organization and budget, and when the institute should be established. This study proposed a Consolidated-Decentralized model as a proper organizational structure after evaluating 4 different models based on 4 criterion. And based on results produced by the model developed for our research, this study suggested proposals that the number of research personnel and the size of budget should be larger than 300 persons and 1200 billion won respectively. However, the establishment of institute should be decided by not only economic factor but also various factors such as political element, externality, private company investment and effect on production inducement etc. If new institute focused on different area from ETRI, then the time and size of the institute could be decided by the result of policy analysis.

A Competitive Study on the Linkage Effects of Primary Industry among Korea, China and Japan (한국, 중국, 일본의 1차 산업의 생산유발효과 비교 연구)

  • Im, Ji-Won;Lee, Sang-Gun
    • Journal of Korea Society of Industrial Information Systems
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    • v.23 no.5
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    • pp.103-118
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    • 2018
  • This study compared the production inducement effects of primary industries between Korea, China, and Japan for the period from 2000 to 2014, by examining the forward and backward linkage effects using the World Input-Output Tables. Although research on the industrial effect of primary industries has been conducted actively, this study is contributive since it compares the differences in industrial linkage effects between Korea, China, and Japan. According to Fisher(1939)'s and Clark(1957)'s classifications of primary industries, this study classified agriculture, forestry, fishing, and mining industries as primary industries. The analysis methodology of this study is to use the World Input-Output Tables to create the industry linkage model between Korea, China, and Japan, and then conduct a comparative analysis. According to the results of this study, the forward and backward linkage effects of agriculture industry between Korea, China, and Japan are significantly different, while the forward and backward linkage effects of forestry and fishing industries between Korea, China, and Japan are partially different. By comparing the changes in industrial dependencies of primary industries due to the 4th Industrial revolution between the three countries, this study suggested the future development direction of primary industries.

Economic Impact of HEMOS-Cloud Services for M&S Support (M&S 지원을 위한 HEMOS-Cloud 서비스의 경제적 효과)

  • Jung, Dae Yong;Seo, Dong Woo;Hwang, Jae Soon;Park, Sung Uk;Kim, Myung Il
    • KIPS Transactions on Computer and Communication Systems
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    • v.10 no.10
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    • pp.261-268
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    • 2021
  • Cloud computing is a computing paradigm in which users can utilize computing resources in a pay-as-you-go manner. In a cloud system, resources can be dynamically scaled up and down to the user's on-demand so that the total cost of ownership can be reduced. The Modeling and Simulation (M&S) technology is a renowned simulation-based method to obtain engineering analysis and results through CAE software without actual experimental action. In general, M&S technology is utilized in Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Multibody dynamics (MBD), and optimization fields. The work procedure through M&S is divided into pre-processing, analysis, and post-processing steps. The pre/post-processing are GPU-intensive job that consists of 3D modeling jobs via CAE software, whereas analysis is CPU or GPU intensive. Because a general-purpose desktop needs plenty of time to analyze complicated 3D models, CAE software requires a high-end CPU and GPU-based workstation that can work fluently. In other words, for executing M&S, it is absolutely required to utilize high-performance computing resources. To mitigate the cost issue from equipping such tremendous computing resources, we propose HEMOS-Cloud service, an integrated cloud and cluster computing environment. The HEMOS-Cloud service provides CAE software and computing resources to users who want to experience M&S in business sectors or academics. In this paper, the economic ripple effect of HEMOS-Cloud service was analyzed by using industry-related analysis. The estimated results of using the experts-guided coefficients are the production inducement effect of KRW 7.4 billion, the value-added effect of KRW 4.1 billion, and the employment-inducing effect of 50 persons per KRW 1 billion.