Abstract
Because it relies on imports for most of the petroleum products consumed in the Korea, the effect of the fluctuations of oil prices on the domestic economy is very large. As the petroleum products produced from the oil refinery industry (ORI) are supplied to other industries as an intermediate goods, it has close relations with the respective industries. Therefore the impact of increase in ORI has a large impact on the national economy. This paper attempts to analyze the pervasive effects of price which are defined as price changes due to 10% increase in the ORI on the production of other industries. To this end, ORI price that is obtained from the Leontief price model and an inter-industry analysis using an input-output (I-O) table. Moreover, the results are compared with those for shipbuilding, semiconductor, and steel industries. The results of petroleum products show that the pervasive effects of price change on diesel products(0.2249%) are the biggest. On the other hand, the pervasive effects of price change on gasoline products(0.0201%) are the lowest. In addition, the pervasive effects of 10% increase in the price of the petroleum products are estimated to be 0.4093%. Therefore the pervasive effects of price change of ORI is bigger than that of steel industry (0.2860%), semiconductor industry (0.0166%) and that of shipbuilding industry (0.0083%).
| Translated title of the contribution | An Analysis on the Pervasive Effects of Price Change in Oil Refinery Industry in Korea |
|---|---|
| Original language | Korean |
| Pages (from-to) | 248-258 |
| Number of pages | 11 |
| Journal | 에너지공학 |
| Volume | 24 |
| Issue number | 4 |
| State | Published - Dec 2015 |