Abstract
The mining industry (MI) has played a role in proving a stable supply of minerals for industrial production and human survival. The South Korean government is implementing various policies to promote the MI and needs quantitative information on the economic role and effects of the MI. Thus, this article aims to derive the information through an input-output (IO) analysis using the recently published 2015 IO table, subdividing the MI into four sectors, namely coal, crude petroleum and natural gas, metal ores, and non-metallic mineral mining, and treating the MI as exogenous rather than endogenous. To this end, three models are employed. First, the production-inducing effects, value-added creation effects, and wage-inducing effects of 1 dollar of production in the MI sector are analyzed using a demand-driven model. One dollar of production or investment in the sector causes 1.81 of production, 0.85 dollar of value-added, and 0.33 dollar of wage, respectively. Second, by applying a supply-driven model, it is found that one dollar of supply shortage in the MI causes 2.24 dollars of production failure throughout the national economy. Third, by utilizing a price-side model, it is discovered that a 10% increase in the price of output of the MI raises the overall price level by 0.025%.
Highlights
The mining industry (MI) is the industrial activity of mining, extracting, and collecting basic non-metallic minerals, metal materials, and energy resources such as coal and natural gas [1,2,3]
This study aims to perform IO analysis using a large-scale 32-sector classification method and a 33-sector IO table that includes the MI
The weighted averages of the price-pervasive effects of a 10% increase in the price level of the coal, crude petroleum and natural gas, metal ores, and non-mineral mining sectors and the entire MI sector on the national economy are estimated to be 0.0018, 0.0006, 0.0003, 0.0227, and 0.025%, respectively
Summary
The mining industry (MI) is the industrial activity of mining, extracting, and collecting basic non-metallic minerals, metal materials, and energy resources such as coal and natural gas [1,2,3]. The MI has played a role in supplying minerals that are indispensable for human survival as well as industrial production [4,5,6]. The development of micro and nano-analysis technologies has led to further in-depth research of minerals [7]. This is the case for South Korea. The steel industry, for instance, plays an important role as an essential input factor in the automobile, shipbuilding, and machinery industries, where South Korea has strengths. The steel industry’s exports account for about 5% of the country’s total exports. The total price of output of the MI has grown at an average annual rate of 3.3% from 22.51 trillion dollars in 2000 to 35.66 trillion dollars in 2015 [8,9]
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