• Economic Analysis
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• v.26 no.4
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• pp.65-97
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• 2020

The purpose of this paper is to analyze the effects of exports on Korea's employment and to decompose driving factors of change in Korea's employment embodied in exports (EEX). This study uses a multi-regional input-output (MRIO) and structural decomposition analysis (SDA) for empirical analysis, and uses a dataset of World Input-Output Tables (WIOTs) and Socio-Economic Accounts (SEAs) from the World Input-Output Database (WIOD). The main findings of the empirical results are summarized as follows. First, Korea's EEX continues to increase and Korea's share of EEX compared to total employment shows an upward trend. However, Korea's employment inducement coefficient of value-added exports showed a downward trend during the 2000-2014 period. Second, final demand from three countries (China, the United States, and the Rest of the World (RoW)) has affected a significant portion of Korea's EEX. Finally, from the results of the SDA, the effect of changes in final demand was the most important driving factor for the increase in Korea's EEX. Based on the results of this empirical analysis, this study discusses useful policy implications that could increase domestic employment in Korea.

• Asia-Pacific Journal of Business
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• v.10 no.3
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• pp.1-16
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• 2019

This paper examines how firm's investment has been affected by offshoring and financialization in Korea over the period 2000-2014 by using industry-level data collected from World Input Output Database (WIOD) and firm-level data collected from the KIS-Value Database. The findings are summarized as follows. First, offshoring index as expected shows a negative relationship with real investment. This negative impact is stronger in a large firm group. Second, there is a positive relationship between dividend payments and real investment. The positive relationship is greater in a small & medium-sized firm group. Third, the purchase of financial assets and the income generated from financial assets are positively related to real investment. The positive relationship is stronger in the small & medium-sized firm group. The empirical results show that firm size is a factor that effectively affects firm's real investment. This paper suggests that the influence of financialization and offshoring on firm's real investment should be assessed in various contexts rather than in a unilateral context.

• 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 Distribution Science
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• v.14 no.10
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• pp.21-27
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• 2016

Purpose - This study analyzes economic relations and mutual influence in the global equipment manufacturing industry (EMI) and China's influence. Research design, data, and methodology - Data were collected from the World Input-Output Database (WIOT), looking at 16 countries. The sample time period was 2002-2011. Influence and motivation coefficients were calculated. Results - 1) China's EMI showed a very strong influence coefficient, even surpassing world industrial powers like Japan, the USA, Germany, and Korea. 2) As for influence on added-value, China's EMI motivation coefficient was ranked third in 2011, which meant it had a negligible effect on added-value. 3) From 2002 to 2011, both the influence and motivation coefficients of China's EMI rose. Conclusions - China's EMI has strong influence and motivation coefficients. It has a significant impact on the world EMI, especially on the total output of the global EMI. Additionally, during 2002 to 2011, the ranking of China's EMI motivation coefficient improved year over year, and its economic efficiency obviously improved. By 2011, China's EMI's international influence was second only to the US and Japan.

• Korea Real Estate Review
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• v.27 no.4
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• pp.51-61
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• 2017

The purpose of this study is to find out the implications for the activation of the real estate industry by comparing the structure of production and distribution, as well as the industrial linkage, of Korean real estate industry with that of the US through an input-output analysis. This study employed the World Input-Output Database (WIOD) provided by the EU in 2016. The results are as follows. First, while the share of the Korean real estate industry in the national economy has been steadily decreasing since the year 2000, the real estate industry of the United States is increasing. Second, both Korean and US real estate businesses have higher value added rates than the industry average, but the intermediate demand rate is lower than the industry average. Furthermore, the intermediate input rate and intermediate demand rate of the Korean real estate industry were lower than that of the US. Third, the change in the final demand for the Korean real estate industry has a lower production and value added effect on the national economy than that of the United States. Fourth, the industrial linkage of the US real estate industry is larger and broader than that of Korea. Finally, it is suggested that a policy to increase the industrial linkage of real estate industry with high value-added industries is needed in order to revitalize Korea's real estate industry.

• Environmental and Resource Economics Review
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• v.22 no.1
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• pp.31-52
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• 2013

The recent analyses of carbon emissions embodied in international trade are related with discussions on who is responsible for the carbon emissions causing global warming. Some authors insist that the countries importing carbon-intensive goods should share the responsibility with the suppliers of those goods. In order to determine which countries are net importers of carbon dioxide embodied in traded goods, we need to construct the multi-regional input-output (MRIO) model incorporating national input-output tables and data on bilateral trades. The paper calculates consumption-based as well as production-based inventories by using MRIO model whose global database is GTAP version 8 to get the picture of carbon footprints in international trades of Korea and other regions in the world.

• KDI Journal of Economic Policy
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• v.38 no.4
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• pp.45-76
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• 2016

This paper measures the extent to which South Korea participated in global value chains (GVCs) from 1995 through 2011 and scrutinizes the consequences of such participation on the Korean economy. To this end, the World Input Output Database is utilized to calculate GVC income, GVC employment, and value-added exports created by Korean and foreign industries. Our findings show that Korea radically internationalized its production activities during the sample period, widening the gap between gross exports and value-added exports. We also document that Korea's participation in GVCs has changed the value-added and employment structures in domestic industries in accordance with their comparative advantages while exacerbating the degree of wage inequality.

• Korea Trade Review
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• v.44 no.2
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• pp.1-19
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• 2019

This paper investigates the effects of TPP on Korean domestic employment. Using data from 1995-2011 obtained from the world input-output database (WIOD) and firm-level data, this paper attempts to identify changes in global value chain (GVC) structures involving Korea and TPP member countries in the Asia-Pacific region. Three stage least squares estimation is employed, and empirical findings show that there exists a statistically positive and significant causal relationship between GVC and domestic manufacturing employment. The positive impacts of TPP on Korean domestic employment suggest that Korea actively encourage TPP negotiation. TPP will bring positive domestic employment effects and opportunities for structural transformation in the manufacturing and services industries in Korea.

• Journal of Korea Technology Innovation Society
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• v.12 no.3
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• pp.471-498
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• 2009

The ability to judge a country's scientific standing is vital for the governments and businesses that must decide scientific priorities and funding. In this paper, we analyze the output and outcomes from research investment over the recent years, to measure the quality of scientific research on national scales and to set it in an international context. There are many ways to evaluate the quality of scientific research, but few have proved satisfactory. To measure the quantity and quality of science in different nations, we analyzed the numbers of published research papers and their citations. The number of citations per paper is a useful measure of the impact of a nation's research output. Essential at a were acquired from SCI database by Thomson Scientific, which indexes more than 8,000 journals, representing most significant materials in science and engineering. The purpose of this paper is to evaluate and compare the output and outcomes among nations in a variety of viewpoints and criteria. One of the implications in response to the result of analysis is that sustainable economic development in highly competitive world markets requires a direct engagement in the generation of knowledge. Even modest improvement in healthcare, clean water, sanitation, food, and transport need capabilities in engineering, technology, and medicine beyond many countries' reach. Nations exporting natural resources such as gold and oil can import technology and expertise, but only until these resources are exhausted. For them, sustainability should imply investment in alternative agricultural and technological capabilities through improvements in their skills base. A strong science base does not necessarily leat to wealth generation. However, strength in science has additional benefits for individual nations, and for the world as a whole.

• Journal of the Society of Naval Architects of Korea
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• v.42 no.2 s.140
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• pp.165-174
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• 2005

Recently, world leading companies on manufacturing field are trying to adopt a PLM methodology, which is a new production paradigm, for a survival and strengthening the competitiveness. Some projects for a digital shipyard including a methodology of a digital simulation framework are going on by Seoul national university and Samsung heavy industry. A Database methodology for a scheduling data, an interfacing methodology for a simulation input and output, and a synchronized simulation related methodology are required for enhancing the value of the digital simulation for shipbuilding. In this paper, such a methodologies and a related case study for a fabrication factory and an assembly factory are presented.