Industrial Linkage Structure between Land Transport Industry and Distribution Industry in Korea

Abstract

Purpose: This study analyzes the production inducement effect and industrial linkage structure of the land transport industries using input-output analysis. In particular, the focus of research is to confirm the link between the land transport industries and the distribution industry in the industrial linkage structure. Design/methodology/approach: The methodology is used by Input-Output Analysis. The analysis focus is calculated the backward linkage effect (BL) and forward linkage effect (FL) using Input Coefficient and Production Induced Coefficient. The analysis data was applied to Korean time-series data from 2000 to 2014 from the World Input-Output Database (Released November 2016). Findings: In Korea, most domestic transportation needs are land transport, and storage services are also provided in conjunction with this. Therefore, it was found that wholesale and retail businesses (G46, G47) in the distribution industry are widely used as intermediary goods. Without the expansion and development of land transport service networks and courier service facilities in Korea, the current chaos caused by COVID-19 would have intensified. Research limitations/implications: The limitation of the study was that reliable data from the WIOD were used but failed to exclude the passenger sector contained in the land transport industries data. Therefore, it is necessary to secure more pertinent data and industrial classifications embodied in the land transport industries. Furthermore, with additional research direction, we analyze the structure of the forward and backward industries of each country s logistics industry and propose establishing the logistics service supply chain concept. Originality/value: Through this study s results, effective industrial policy establishment will be possible considering industries with high production inducement effect to forward and backward industries by the shipping and land transport industries. This study has a meaningful implication that it provides a foundation for understanding the industrial structure linked to the distribution and land transport industries.