Analysis of the impact of network characteristics on the industry's value-added rate

Abstract

PurposeThis study analyzed Korea's relations table through network analysis. In particular, among the centralities, eigenvector centrality, PageRank centrality and degree were used. The author studied which network characteristics affected the value-added rate.Design/methodology/approachA network analysis method was used.FindingsIt is the inward relationship that affects the value-added ratio of Korea's industries and the outward relationship has less influence. In particular, the inward relationship not only acts as a cost but also has an effect on the rate of added value recently.Research limitations/implicationsSince the three years of 2010, 2015 and 2019 are the target, the data are somewhat insufficient to generalize.Practical implicationsAs for the value-added ratio of an industry, input is more important than output (sales). Therefore, where the input is received is very important.Social implicationsIt is possible to increase the understanding of the determinants of the value-added rate of Korean industries.Originality/value(1) It was clarified which side is inward or outward in determining the industry in Korea. (2) The relationship between PageRank, eigenvector centrality and degree was analyzed in Korean cases. (3) Input is a cost and acts to increase added value.