• Title/Summary/Keyword: WIOD

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How Have Financialization and Offshoring Affected the Firm's Investment in Korea?

  • Lee, Woocheol;Kim, Joonil
    • 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.

Calculation of Virtual Water Trading Between Countries (국가 간 가상수 거래 산정)

  • Park, Sung Je;Kang, In Hye;Park, Jui;Ryu, Si Saeng
    • Proceedings of the Korea Water Resources Association Conference
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    • 2018.05a
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    • pp.210-210
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    • 2018
  • 효과적인 물 사용과 물 관리 정책을 수립하기 위해서는 산업적 차원에서의 물 발자국 연구를 통해 산업 전반적인 수자원 활용 상황을 비교 분석할 필요가 있다. 또한 앞으로 국가 차원의 물 안보 정책을 수립하기 위해서는 기후변화와 국제환경 변화로 인해 우리나라의 물발자국 변화를 예측하는 것이 필수적이다. 국외에서는 일찍이 물과 환경전문 교육기관인 UNESCO-IHE를 중심으로 물발자국 산정방식의 이론적 연구와 함께 가상수 무역에 대한 연구를 진행해왔으며, 국제표준화기구(International Organization for Standardization, 이하 ISO)는 2014년 물발자국에 대한 가이드라인을 국제표준으로 지정하였다. 국내에서는 2009년 가상수와 물발자국에 대한 이론이 소개되어 공공기관의 주도로 가상수 및 물발자국과 관련된 연구가 진행되어 왔다. 이러한 연구결과를 바탕으로 데이터베이스를 구축하기도 하였으나 1차 산업 위주로 구성되어 있어 2차, 3차 산업 등 다른 산업에 대한 정보는 부족한 상태이다. 따라서 앞으로는 2차, 3차 산업 등에 대한 연구가 필요하다. 국제 가상수 거래의 도출을 위한 기초자료로서 WIOD의 input-output tables와 environmental accounts 등을 활용하였다. 본 연구에서는 생산량, 물사용량과 관련된 지표를 결합하여 가상수량을 도출하는 과정을 제시하고, 가상수 이동흐름 및 추이를 분석하였다. 이를 위해 주요 16개국(아르헨티나, 호주, 브라질, 캐나다, 중국, 프랑스, 독일, 인도, 일본, 한국, 러시아, 사우디아라비아, 태국, 미국, 베트남)의 농축산물 주요 10개 품목(쌀, 보리, 옥수수, 밀, 콩, 감자, 채소, 소고기, 돼지고기, 계란)을 대상으로 분석을 실시했다. 또한 국가별 가상수 교역량, 국가 간 가상수 교역량에 대한 1989년부터 2014년까지의 데이터셋을 구축하고 이에 대해 분석을 수행하였다. 가상수 교역의 품목별 분석결과 주요 16개국의 주요 가상수 수입 품목은 콩, 옥수수, 밀, 보리 순이며, 주요 가상수 수출 품목은 밀, 콩, 옥수수, 쌀 순으로 파악되었다. 가상수의 종류별로 분석한 결과 가상수 교역량은 지난 25년간 녹색 가상수가 94%의 압도적으로 많은 비중을 차지하고 있었다. 국가별로 가상수 수출입량을 분석한 결과 1989년에서 2013년까지 미국, 브라질, 아르헨티나, 호주 등 주요 농업 국가들이 전 세계 가상수 수출에서 우위를 점하고 있는 것으로 분석되었다.

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Research on Participation and Position Evaluation of Korean Manufacturing Global Value Chain: Based on the Comparative Analysis with China and the United States

  • Zhang, Fan;Su, Shuai
    • Journal of Korea Trade
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    • v.25 no.2
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    • pp.75-94
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    • 2021
  • Purpose - This article will take the Korean manufacturing industry as an example to estimate Korea's global value chain status from the perspective of overall and sub-industry, hoping to provide a theoretical reference for Korean manufacturing to climb the global value chain. Design/methodology - Based on the WIOD data. The data is calculated by using MATLAB (2014a) coding. The data for 6 sectors are classified according to the International Standard Industrial Classification revision 3 (ISIC Rev. 3), the WIOD data are used to calculate and compare the position, participation and dynamics of the Korea, China and USA' manufacturing industry in the 1995-2016. Findings - The empirical results supported conclusions of the theoretical model. In the Korean GVC of electrical and optical sector, while stronger forward linkages than backward linkages to GVC are advantageous for an average advanced country, the benefits of downstream tasks are pronounced for non-advanced countries. And proved the correlation for an index to capture a country's upstream position or downstream position, it makes sense to compare that Korea's exports of intermediates in the same sector that are used by China and USA. Originality/value - The first is to re-examine the characteristics of South Korea's participation in global value chains under a more systematic and accurate theoretical framework, which provides a new empirical reference for related research; the second is to content covers of the manufacturing 6 sectors, so as to more completely describe the characteristics of Korean manufacturing's participation in global value chains; The value of this paper is providing empirical evidence of the effect of Korea's the GVC of manufacturing sectors. In the GVC of 6 sectors, first three have a higher position in the value chain and are in the upper middle and upper reaches of the GVC. The latter two have a low GVC position index, which has become the main sector that pulls down the overall position of Korea's manufacturing industry.

Korea's Employment Embodied in Exports: a Multi-Regional Input-Output and Structural Decomposition Analysis (우리나라 수출의 고용파급효과에 관한 연구: 다지역산업연관 및 구조적 요인분해 분석을 중심으로)

  • Kim, Tae-jin
    • 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.

Spillover Effect Analysis of TPP's Global Value Chain Reorganization on Domestic Employment (TPP에 따른 글로벌 가치사슬 재편의 국내 고용 파급효과분석)

  • Choi, Nam-Suk
    • 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.

A Comparative Analysis of the Industrial Linkage Structure between the Real Estate Industries of Korea and the US (한국과 미국 부동산업의 산업연관구조 비교분석)

  • Yun, Kap Sik
    • 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.

A Comparative Study on the Employment Creation Effect of FinTech Industry in Korea and USA (한국·미국 핀테크(FinTech) 산업의 고용창출효과 비교 연구)

  • Shin, Yong Jae
    • Journal of Digital Convergence
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    • v.16 no.12
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    • pp.185-195
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    • 2018
  • This study aims to explore the development of FinTech industry in Korea by comparing and analyzing the effect of job creation in the FinTech industry in Korea and the US. The industry Input-Output table used in the analysis used WIOD, which is composed of the same industrial classification and monetary unit in both Korea and the US. For the analysis, the FinTech industry is composed of ICT sector and financial sector as one industry. This study also compares the employment creation effect in the ICT sector and the financial sector, in addition to the FinTech industry, in order to distinguish the FinTech industry characteristics of the two countries. As a result of the analysis, when the investment or production of 1 million US dollars was made in the FinTech industry in Korea, the employment inducement effect was 11.33 and the employment inducement effect was 9.47, indicating a total employment creation effect of 20.8 persons. In the United States, the Direct employment effect was 8.07 and the indirect employment effect was 7.72, indicating that the employment creation effect was 15.79. However, as a result of classification by the average employment creation effect of the national economy, Korea 's FinTech industry is classified as indirect employment advantage with a high indirect employment inducement effect and the United States is classified as an employment creation advantage with high both direct and indirect employment inducement effect.

Revisiting the Role of Imported Inputs in Asian Economies

  • Woocheol Lee
    • 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.

The Effect of Inter Korean Agriculture Trade on Trade Structure in Northeast Asia (남북 농업부문 교역이 동북아(한·중·일)의 교역구조에 미치는 영향 분석)

  • Cho, Sung-Taek;Kim, Gi-Hwan
    • Korean Journal of Organic Agriculture
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    • v.29 no.4
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    • pp.459-469
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    • 2021
  • Until now, research on inter-Korean economic cooperation and economic integration has been limited to the areas of the two Koreas. However, Korea is connected with many countries in Asia through the global value chain. Thus, if inter-Korean trade deepens, it may affect the trade structure of neighboring countries. In order to establish a specific inter-Korean economic integration policy when North Korea becomes a normal state in the future, an analysis that reflects the trade structure including Northeast Asia must be preceded. Therefore, in this paper, the impact of inter-Korean trade on Korea, China and Japan was analyzed using the international input and output table containing actual trade data. The scope of analysis was limited to agriculture, reflecting North Korea's demand for economic cooperation. The results show that trade in the agricultural sector between the two Koreas did not have a significant effect of production and value added. but when China and Japan participate in trade with North Korea, the production effect was calculated to be as high as 4 million dollars in Korea and up to 10 million dollars in Japan. And China showed up to 520 million dollars. In addition, the value-added effect was calculated up to $1 million in Korea, up to $4 million in Japan, and up to $250 million in China.