• Korea Trade Review
• /
• v.47 no.4
• /
• pp.233-254
• /
• 2022

Although there is growing literature evidence of linkages between global value chains (GVCs) and foreign direct investment (FDI), the results are mixed and ambiguous by geographic dimension, time period and sectoral scope. Moreover, bilateral approaches on these connections have been rarely analyzed. In this context, we investigate the effect of bilateral greenfield FDI and cross-border M&A on GVC linkages between host countries and source countries. We match three-year averages of bilateral FDI and UNCTAD-Eora GVC value-added data from 2005 to 2019 between 37 OECD sources and 176 host countries (37 OECD versus 139 non-OECD countries). In the structural gravity model, the empirical specification includes bilateral and country-period fixed effects and uses a Poisson Pseudo-Maximum Likelihood (PPML) estimator. We find that greenfield and M&A FDI promote forward and backward GVC linkage for all sectors between OECD countries, whereas greenfield FDI promotes backward GVC linkage between OECD and non-OECD countries. In addition, the results indicate that the degree of influence of GVCs by FDI flows is greater for forward GVC than backward GVC among OECD countries.

• Journal of the Korean Society for Aeronautical & Space Sciences
• /
• v.42 no.9
• /
• pp.739-744
• /
• 2014

Space exploration project usually consists of so many fields of sub projects that it has a diverse ripple effect throughout the economy. Further studies could not consider the complexity of the space exploration project because they regarded it as one project in spite of the diversity. This study found a way to consider complexity of space exploration project using the concept of WAC(weighted average coefficient). The moon exploration project (2014~2020) is the subject of this study. We classified the moon exploration project into 8 industries and calculated the WAC of production inducement coefficient, value added inducement coefficient, and employment inducement coefficient. The result of analysis using these WACs is that production inducement effect amounts to 1,229.6 billion won, value added inducement effect 324.6 billion won, employment inducement effect 4,844 men. And the linkage effect analysis shows that moon exploration project has more backward linkage effect than forward linkage effect.

• Journal of Information Technology Services
• /
• v.17 no.2
• /
• pp.49-67
• /
• 2018

This study compares economic impact between Software and Medical industry through Input Output Table by Bank of Korea. We classify Software and Medical industry by The ninth Korea Standard Industry Classification and use linkage effects, value added inducement coefficient, and labor inducement coefficient to analyze economic impact. First, software and medical industry have different linkage effects between backward and forward. Second, They have higher value added inducement coefficient than average of all industry. Third, They not only have higher labor inducement coefficient than average of all industry but also simillar effect on labor induction. According to the result of this study, software and medical industry have high economic impact on Korea economy, and therefore are intensively fostered by policy support.

• Korean Journal of Agricultural Science
• /
• v.26 no.2
• /
• pp.77-93
• /
• 1999

This study is aiming at identifying the foreward and backward lingkage effects of the farm land base development project. Korean Government has continuously carried out farmland base development projets including the integrated agricultural development projects. large and medium scale irrigation projects and the comprehensive development of the four big river basin including tidal land reclamation and estuary dam construction for the all weather farming since 1962. the starting year of the five year economic development plans. Consequently the irrigation rate of paddy fields in Korea reached to 75% in 1998 and to escalate the irrigation rate, the Government had procured heavy investment fund from IBRD. IMF and OECF etc. To cope with the agricultural problems like trade liberalization in accordance with WTO policy, the government has tried to solve such problems as new farmland base development policy, preservation of the farmland and expansion of farmland to meet self-sufficiency of foods in the future. Especially, farmland base development projects have been challanged to environmental and ecological problems in evaluating economic benefits and costs where the value of non-market goods have not been included in those. Up to data, in evaluating benefits and costs of the projects, farmland base development projects have been confined to direct incremental value of farm products and it's related costs. Therefore the projects'efficiency as a decision making criteria has shown the low level of economic efficiencies. In estimating economic efficiencies including Leontiefs input-output analysis of the projects could not be founded in Korea at present. Accordingly this study is aimed at achieving and identifying the following objectives. (1) To identify the problems related to the financial supports of the Government in implementing the proposed projects. (2) To estimated backward and foreward linkage effects of the proposed project from the view point of national economy as a whole. To achieve the objectives, Hwangrak benefited area with reservoir which is located in Seosan-haemi Disticts, Chungnam Province were selected as a case study. The main results of the study are summarized as follows : a. The present value of investment and O & M cost were amounted to 3,510million won and the present value of the value added in related industries was estimated at 5.913million won for the period of economic life of 70 years. b. The total discounted value of farm products in the concerned industries derived by the project was estimated at 10,495million won and the foreward and backward linkage effects of the project were amounted to 6,760 and 5,126million won respectively. c. The total number of employment opportunities derived from the related industries for the period of project life were 3,136 man/year. d. Farmland base development projects were showed that the backward linkage effects estimated by index of the sensitivity dispersion were larger than the forward linkage effect estimated by index of the power of dispersion. On the other hand, the forward linkage effect of rice production value during project life was larger than the backward linkage effect e. The rate of creation of new job opportunity by means of implementing civil engineering works were shown high in itself rather than any other fields. and the linkage effects of production of the project investment were mainly derived from the metal and non-metal fields. f. According to the industrial linkage effect analysis, farmland base development projects were identified economically feasible from the view point of national economy as a whole even though the economic efficiencies of the project was outstandingly decreased owing to delaying construction period and increasing project costs.

• The Journal of Korean Institute of Communications and Information Sciences
• /
• v.31 no.12B
• /
• pp.1087-1098
• /
• 2006

This study is unlike common Input-Output Analysis in the point that both RAS and methods are applied to the dynamic Input-Output Model simultaneously. We have analyzed the propagation effects on the regional economy from the investment generated by u-City construction in Wha-sung and Dong-tan City. The main results of the study are as follows. The total induced effect on production according to u-City construction in Wha-sung and Dong-tan City is estimated about 2.9 times. On the other hand, u-City industry is appreciated as a industry which a forward linkage effect is very high while a backward linkage effect is not that high.

• The Journal of Korea Institute of Information, Electronics, and Communication Technology
• /
• v.13 no.1
• /
• pp.72-80
• /
• 2020

The information security industry is increasing in importance and market size due to the development of the fourth industry such as artificial intelligence, IoT and etc. This paper was analyzed the impact of the increasing information security industry on the domestic economy by using the Input-Output table. It was classified industrial sectors into information security products and information security services industries, and then reclassified the Input-Output table into 35 industries. And it was estimated the production inducement coefficient, the value-added inducement coefficient, employment inducement coefficient, and etc. The production inducement coefficients of the information security product and service industry are each 1.571, 1.802, and the value-added inducement coefficients of them are each 0.632, 0.997, and the employment inducement coefficients of them are each 2.494, 7.361. Only the value-added inducement coefficient of the information security service industry is slightly higher than the total industry, and the remaining inducement coefficients are all lower than the total industry. In addition, the information security product industry has no the forward and backward linkage effect, and the information security service industry has no the backward linkage effect. But it has the forward linkage effect. As a result of analyzing the economic ripple effect of the information security industry, the production inducement amounted to 359.9 trillion won, value-added inducement amounted to 164.8 trillion won, and employment inducement amounted to 803 thousand people.

• Spatial Information Research
• /
• v.21 no.1
• /
• pp.37-44
• /
• 2013

This study sets the boundary of U-City industry based on expert surveys. Based on this U-City industry boundary, an appropriate inter-industry analysis is performed. The result shows production inducement coefficients, value added inducement coefficients, employment & enter employment inducement coefficients, influence coefficients and induction coefficients. Based on these coefficients, overall characteristics and spillover effects of U-City industry are examined. The result of this study shows that U-City industry has bigger value added-induced effects and employee-induced effects than other industry. The result also shows that U-City industry also has a great forward linkage effect. This study has a meaning that could be used to make political decisions as a basic data.

• Health Policy and Management
• /
• v.10 no.1
• /
• pp.126-147
• /
• 2000

This paper empirically explores the nature of the medical service industry and its various propagation effects on the economy in the input-output model, as revealed by a comparative analysis between Korea and Japan. The main findings of the paper are as follows; First, the growth of medical industry induces above-average effect on employment. Second, the industry is of the characteristics of weak both backward and forward linkage effects implying a 'final demand dependency industry'. When compared with public service sectors, however, the medical services industry shows stronger backward linkage effect than those sectors. Furthermore, it has strong repercussion effects on the goods industries. Third, in order to produce per unit of services, the medical services industry of Korea uses relatively more drugs and medical devices than that of Japan. In general, it has been shown that production structure of medical service industry in Korea is 'hardware-oriented' one; on the other hand, 'software-oriented' in Japan which means that, as intermediate inputs, outsourcing and informatization has been used than those of Korea. From the findings of the paper it could be emphasized that the medical organizations in Korea should put more efforts on shifting the current hardware-oriented production structure to strengthen core competence by enhancing productivity and by outsourcing to improve efficiency of production process. However, the medical organizations in Korea would not have enough incentives for high value-added production structure because they enjoy high operating surplus. Therefore, it would be necessary that government policy should be taken into account of these environments.

• Environmental and Resource Economics Review
• /
• v.18 no.4
• /
• pp.637-652
• /
• 2009

We measure and compare inducements of energy consumption in different industry sectors using inter-industry input and output tables of 1995, 2000 and 2005. We also compute the multiplier effects that relate to the directions of future economic effects. Key Findings are as follows. First, we observe continues decreasing linkage effects in all industries over period of 1995 to 2007. Second, backward multiplier of energy consumption were highest in the material related industry and chemical industry. As for inter-industry inducements, the indirect backward multipliers were high in the other industry. Third, the forward multiplier effect of energy consumption were as same as the backward multiplier effect's sectors. The indirect forward multipliers, however, were highest in the material related industry and chemical industry. The above findings show that since implementing pro-environmental policy in 2000s, the industries structure for reducing energy consumption has been transformed.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.9
• /
• pp.143-156
• /
• 2022

This article examines the effect of inward foreign direct investments (FDI) on the export performance of micro, small & medium enterprises (MSMEs) in India, and investigates the spillover impact and absorption capacity of the MSMEs sector. For the first time, the researchers applied the intersectoral linkage approach to investigate the matter and used a panel dataset between 2006 and 2017. The coefficients of forward and backward linkages are estimated by using the Rasmussen method, the study employs a basic linear panel data model, followed by various diagnostic tests to identify the problem of heteroscedasticity, autocorrelation / serial correlation, cross-sectional dependencies, multicollinearity, time-individual specific tests, and unobserved effects. The PCSE model was applied for robust standard error and the Hausman-Taylor IV model to check the robustness of the result generated in the linear panel data model. Despite the high prevalence of forward and backward intersectoral connections and the Lack of absorption capacity of local firms, the results show that FDI has little of an impact on the export performance of micro, small, and medium-sized businesses in India. This study adds to the existing literature on determining local firms' spillover effect and absorption capacity in response to inward FDI.