Abstract
The automobile industry in Korea plays a major role in the national economy in terms of magnitudes of output, value-added, export, and the number of employees, accounting for about 10% of manufacturing sectors. This paper attempts to apply input-output (I-O) analysis to investigate the economic impacts of the automobile industry in the national economy for the year 2003, with specific application to Korea. A static I-O framework is employed, focusing on three topics in its application. First, the impacts of the production or investment in advertising industry on the production, value-added, and employment of other sectors are explored by using demand-driven model. Second, the impacts of the supply shortage in automobile industry on other sectors are looked into by using supply-driven model. Third, the impacts of the rise in automobile price on prices of other products are discussed by using Leontief price model. This paper pays particular attention to the automobile industry by taking the industry as exogenous and then investigating its economic impacts. In addition, inter-industry linkage analysis is performed to obtain information on the forward and backward linkage effects to quantify the strength of causation among industries. It can be summarized that the automobile industry has a low production-inducing effect, a high supply shortage effect, a high pervasive effect of price change, a low forward linkage effect, and a high backward linkage effect.
Translated title of the contribution | An Analysis on the Economic Impacts of the Automobile Industry |
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Original language | Korean |
Pages (from-to) | 187-209 |
Number of pages | 23 |
Journal | 상경연구(산업혁신연구로 개편) |
Volume | 24 |
Issue number | 3 |
DOIs | |
State | Published - Dec 2008 |