Abstract
This study mainly aims to provide an inter-industry analysis through the subdivision of various industries in flow-of-funds (FOF) accounts. Combined with the Financial Statement Analysis data from 2004 and 2005, the Korean FOF accounts are reconstructed to form “from-whom-to-whom” basis FOF tables, which are composed of 115 institutional sectors and correspond to tables and techniques of input–output (I–O) analysis. First, power of dispersion indices are obtained by applying the I–O analysis method. Most service and IT industries, construction, and light industries in manufacturing are included in the first-quadrant group, whereas heavy and chemical industries are placed in the fourth quadrant since their power indices in the asset-oriented system are comparatively smaller than those of other institutional sectors. Second, investments and savings, which are induced by the central bank, are calculated for monetary policy evaluations. Industries are bifurcated into two groups to compare their features. The first group refers to industries whose power of dispersion in the asset-oriented system is greater than 1, mainly light industries, IT, and service. On the other hand, the second group indicates that their index is less than 1, mostly heavy and chemical industries. We found that the net induced investments (NII)–total liabilities ratios of the first group show levels half those of the second group since the former’s induced savings are obviously greater than the latter.
Highlights
Flow-of-funds (FOF) accounts indicate the interrelations between the various institutional sectors of each nation, including overseas sectors, in a systematic and coherent manner
Tsujimura and Mizoshita (2003), Tsujimura and Tsujimura (2006) estimated the induced amount of the supply and demand of funds to analyze the effect of central bank monetary policies, through financial transactions between institutional sectors represented in the Leontief inverse
Combined with 2004 and 2005 Financial Statement Analysis (FSA) data, the FOF accounts are subdivided into 115 institutional sectors, including 95 types of inter-industries
Summary
Flow-of-funds (FOF) accounts indicate the interrelations between the various institutional sectors of each nation, including overseas sectors, in a systematic and coherent manner. Tsujimura and Mizoshita (2003), Tsujimura and Tsujimura (2006) estimated the induced amount of the supply and demand of funds to analyze the effect of central bank monetary policies, through financial transactions between institutional sectors represented in the Leontief inverse Adopting this analysis method, Manabe (2009) tried policy evaluations of public financial institutions using the FOF accounts of Japan. Previous studies have indicated that by obtaining the NII of each industry, which are caused by any kind of monetary or financial policy, it is possible to link the I–O table and NII from the FOF accounts. This study aims to (1) analyze various inter-industries from the viewpoint of the FOF accounts, (2) examine policy evaluation methods and suggest monetary market operations, and (3) derive a new analysis tool to link the I–O table and FOF accounts for future works. The conclusions of this paper are presented in the last section
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
