Economic effect of the golf simulation industry in Korea: an analysis based on the SVAR model

Abstract

The main objective of this study is to investigate the impact relationship between the golf simulation industry and economic growth in Korea using impulse response and variance decomposition of Structural Vector Auto-regressive model (SVAR) based on data from 2000 to 2020. The impulse response results show that under the short-term constraint, there is a strong correlation between the golf simulation industry, sports industry investment and labor population, while the interaction between the golf simulation industry, sports industry investment and economic growth is weak, and the trend of their influence is somewhat uncertain under the effect of economic growth. In contrast, there is a unidirectional positive influence effect between the golf simulation industry, sports industry investment, labor population and economic growth under the long-term constraint. However, the difference from short-term constraints is that the long-term shock effect is less volatile with a poorer influence effect, thus leading to the weaker interaction between them. The structural variance decomposition shows that the impact path of the economic effect of the golf simulation industry is the same for both long-term and short-term effects, which indicates that the golf simulation industry, labor population, and sports industry investment all have a positive contribution on economic growth.