Inter-industry Analysis Research Articles

The Internalization of Advertising Services: An Inter-Industry Analysis

Abstract This study investigates the extent to which U.S. advertisers use in-house rather than independent advertising agencies and examines inter-industry variation in such internalization. Contrary to the widely-held impression that use of an in-house advertising agency is more the exception than the rule, we find that vertical integration of advertising services is much more widespread than has hitherto been appreciated. Drawing on concepts from research on scale economies and transaction costs, we develop a set of hypotheses about differences in the expected depth of internalization across industries. We test these hypotheses in cross sectional analyses of data covering 69 two digit SIC industries at two points in time, 1991 and 1999. In both years, approximately half of advertisers of all sizes operated an in-house agency. Across industries, we find that the likelihood of internalization of at least some advertising services decreases as the size of advertising outlays increase but increases as advertising intensity and technological intensity increase and is greater for “creative” industries.

An Empirical Study of Efficiency in Croatia and Slovenia Insurance Markets

In this paper we analyze insurance efficiency in Slovenia and Croatia between 2006 and 2010 using a Data Envelopment Analysis. We perform both intra- and inter- country efficiency surveys. The intra country survey indicates that on average companies in Croatia operate more efficiently than companies in Slovenia. A positive trend of scale efficiency improvement due to mergers and acquisitions which took place in recent years in Croatia is also detected. Nevertheless, the inter-industry analysis indicates that the Slovenian insurance industry dominates Croatian cost and technical efficiency, which shows a low efficiency position of the insurance market in Croatia. Analysis also shows that inefficiency in Croatia is more affected by inefficient internal company operation than in Slovenia.

Value-added Effect of Labor Productivity in Extending the Mandatory Retirement Age: Evidence from Korea

In this study we use an inter-industry analysis to evaluate the economic ripple effect of the mandatory retirement age extension system. The data employed herein include the industry input-output table and labor data. The labor productivity table by age and industry was generated using the results of a survey. The survey was conducted among the manufacturing and service sectors. The average wage by industry and age (Ministry of Labor, Monthly Labor Statistics Survey) and the number of wage workers by industry and age (National Statistical Office) were also determined to be used in this study. The principal empirical findings of this work are that the extension of mandatory retirement exerts a value-added effect ranging from a minimum of 1.02 trillion Kwon (about 1 billion US dollars) to a maximum of 3.01 trillion Kwon (about 3 billion US dollars). If the mandatory retirement age is extended from the current 55 to 60, the industries that benefits from the largest value-added effects are the public administration and education service sectors. This means that more workers will continue to work after the age of 55 relative to other industries, or that the wage levels of workers over the age of 55 will be higher, or that the decline in the productivity of these workers will be lower. The economic ripple effect of the extension of mandatory retirement age is estimated to be quite immense. The extension of retirement age should begin in the service sector, in which the loss of productivity is anticipated to be relatively small. This study addresses a variety of policy remedies to soft-land the extended mandatory retirement age, and to enhance its social benefits.http://dx.doi.org/10.5755/j01.ee.22.4.715

생명보험산업과 손해보험산업의 경제적 파급효과 비교 분석

전 세계적으로 개인의 건강에 대해서 관심이 커져가고 있다. 이에 따라 개인의 건강과 관련이 높은 보험산업의 중요성이 높아지고 있다. 보험산업은 크게 생명보험산업과 손해보험산업으로 구분 할 수 있다. 따라서 본 연구에서는 생명보험산업과 손해보험산업에 대하여 산업연관분석을 이용하여 국민경제적 파급효과를 비교 분석하여 보고자 한다. 분석에서는 외생화기법을 사용하여 생산유발효과, 부가가치 유발효과, 취업유발효과, 물가파급효과를 분석한다. 분석결과는 손해보험산업의 생산유발효과는 2.7원, 부가가치 유발효과는 1.6원, 취업유발효과는 26.9명, 물가파급효과는 2.0%로 분석되었다. 반면 생명보험산업의 생산유발효과는 1.6원, 부가가치 유발효과는 1.0원, 취업유발효과는 16.5명, 물가파급효과는 1.2%로 분석되었다. 종합적으로 보면 손해보험산업이 생명보험산업의 파급효과보다 높은 것으로 나타났다. The interest in personal health is now growing around the world. Accordingly, the insurance industry which is closely related to personal health is becoming more important. Insurance industry can be divided into to main stream, life insurance and indemnity insurance. This study attempts to compare the economic impacts of the life insurance industry and indemnity insurance industry using an inter-industry analysis. The study investigates production-inducing effect, value added inducing effect, employ-inducing effect, sectoral price effect using Exogenous specification. The results show that indemnity insurance industry induces production-inducing effect of 2.7 won, value-added-inducing effects of 1.6 won, employ-inducing effect of 26.9 person, sectoral price effects is 2.0%. On the other hand, life insurance industry induces production-inducing effect of 1.6 won, value-added-inducing effects of 1.0 won, employ-inducing effect of 16.5 person, sectoral price effects is 1.2%. Overall, indemnity inducements has higher economic impacts than life insurance.

Timeliness of Financial Reporting: An Empirical Study in Indonesia Stock Exchange

This study empirically analyzed timeliness of financial reporting in Indonesia. Timelines of financial reporting are measured by audit lag and reporting lag. This study utilized an unbalanced panel of 700 firm-years of companieslisted on the Indonesia Stock Exchange during the period 2007-2009. The mean of audit lag is 74 days and the mean of reporting lag is 94 days. It is found that corporate governance and audit opinion negatively affect both audit lag and reporting lag, whereas firm size positively affectsaudit lag and reporting lag. Debt ratio only negatively affects reporting lag. Auditor’s firm, profitability, price earnings ratio and dividend payout ratio do not significantly affect either audit lag or reporting lag. Inter-industry analysis of audit lag and reporting lag reported that the financial industry has the shortest audit lag and reporting lag. The trade, service and investment industries have the longest audit lag whereas the property, real estate and building construction industries have the longest reporting lag.

국내 미디어산업의 파급효과 분석

전 세계적으로 미디어산업의 중요성이 증대되고 있으며, 이에 따라서 미디어산업의 전반적인 변혁이 일어나고 있다. 따라서 미디어산업에 대한 국민경제적 파급효과 분석이 필요한 시기라 할 수 있다. 본 연구에서는 산업연관분석을 통한 미디어산업을 분석하였는데, 먼저 수요유도형 모형을 이용하여 생산유발효과, 부가가치 유발효과, 취업유발효과를 구하였고, 공급유도형 모형을 이용하여 공급지장효과를 구하였고, 레온티에프 가격모형을 이용하여 물가파급효과를 분석하였다. 분석결과는 미디어산업의 1원의 생산에 대하여 경제전체에 생산유발효과는 0.5461원, 부가가치 유발효과는 0.3143원 유발하였으며, 10억원당 취업유발은 5.0459명, 미디어산업에 1원의 공급지장이 생기면 국민경제전에 미치는 공급지장효과는 0.7353원으로 나타났으며, 10%의 가격상승에 의한 물가파급효과는 0.2389%로 분석되었다. The media industry is becoming more important around the world and there are changes over this industry. Therefore this is the time that the economic impacts is needed about media industry. This study attempts to examine the economic impacts of the media industry using an inter-industry analysis. Specifically, the study investigates production-inducing effect, value added inducing effect and employ-inducing effect of the media industry based on demand-driven model and the study deals with supply shortage effect and sectoral price effect of the media industry by using supply-driven model and Leontief price model. The results of this analyses are presented; 0.5461 won in production-inducing effect, 0.3143 won in value added inducing effect when 1 won is produced by media industry, 5.0459 persons in employ-inducing effect when 1 billion won is produced, 1 won of supply shortage in this industry results 0.7353 won in supply shortage effect which affect the other industries. Sectoral price effect is 0.2389% due to the 10% increase of price.

The Role of the Korean Media Industry Analysis Using Inter-industry Analysis

The Role of the Korean Media Industry Analysis Using Inter-industry Analysis

The Interdependence between the Capital Region and Regional Economic Zones: An Integrated Approach of Regional Interindustry Analysis and Network Analysis

The Interdependence between the Capital Region and Regional Economic Zones: An Integrated Approach of Regional Interindustry Analysis and Network Analysis

The evolution of supply chain relationships: An interpretative framework based on the Italian inter-industry experience

This paper adopts an inter-industry analysis approach to compare the supply chain evolution of the railway and aircraft manufacturing industries, highlighting the fact that these industries are going through a period of enormous change involving the production system as a whole. In particular, the paper identifies the supply relationship evolution in both industries and analyses the vertical relationships, thus showing how the circulation of information and technology is a crucial factor for supply chain efficiency. These elements are addressed so that an interpretative framework may be developed to broaden understanding of the industry-specific factors that affect firms’ competitive strategies. The paper synthesises the results of a research program focused on the supply systems of the main Italian companies in the aircraft industry (Alenia Aeronautica) and in the railway industry (AnsaldoBreda).

문화콘텐츠산업의 파급효과 분석

Korea shared 2.4% of world culture contents market in 2006 and ranked 9th. Therefore Korean government classified culture contents industry as a new growth-driving industries and started fixing the total contents policy promote system, exterminating illegal copying, protect copyright,improving contents creativity power, and supporting foreign market pioneering. Thus the importance of culture contents industry is increasing day by day. This study analyze the amount changes about production-inducing effect, value-added-inducing effects, employ-inducing effect, supply shortage effect and sectoral price effect, using inter-industry analysis according to time series. Especially, the sectoral price effect of culture contents industry increased by time pass. Thus, the influence of price changes in the culture contents industry to the other industries are increasing.

Pembangunan Jadual Input-Output Wilayah dan Analisis ke atas Struktur Industri Selangor

Artikel ini membentangkan hasil kajian ke atas pembangunan jadual input-output negeri Selangor yang dianggar dengan menggunakan teknik RAS pada tahun 2000. Dengan menggunakan andaian kesamaan penggunaan input dan teknologi pengeluaran antara Selangor dan Malaysia, struktur aliran antara industri Selangor dianggar berasaskan struktur aliran antara industri nasional. Jadual input-output yang dianggar kemudiannya digunakan untuk menjalankan analisis ke atas struktur pengeluaran industri Selangor. Hasil kajian mendapati Selangor memiliki struktur pengeluaran industri yang sederhana dan terlalu bergantung kepada import dan eksport. Analisis ke atas kaitan antara industri mendapati sektor pembuatan, perlombongan dan kuari, dan perkhidmatan kerajaan merupakan sektor-sektor strategik di Selangor yang dapat memberi impak besar ke atas pembangunan ekonomi negeri.

The Internalization of Advertising Services: An Inter-Industry Analysis

The common perception appears to be that vertical integration of advertising services is more the exception than the rule in the U.S. advertising industry. This study investigates the extent of such outsourcing and examines inter-industry variation in the use of in-house rather than independent advertising agencies by U.S. advertisers. While the vast majority of large advertisers employ outside agencies, it comes as a surprise to find that when advertisers of all sizes are considered, about half operate some form of in-house agency. Internalization of advertising services is much more widespread than has hitherto been appreciated and varies widely across industries. To explain this variation, we draw on concepts from research on scale economies and transaction costs to develop a set of hypotheses which we test in cross sectional analysis of data covering 69 two digit SIC industries at two points in time, 1991 and 1999. Across industries, we find that the likelihood of internalization of advertising services decreases as the size of advertising outlays increase but increases as advertising intensity and technological intensity increase and is greater for creative industries.

한국 철강산업의 국민경제적 파급효과 분석

전 세계적으로 철강산업의 중요성은 높아지고 있으며, 철강수요 역시 증가하고 있는 추세이다. 한국 철강산업의 철강생산량은 전 세계에서 5위를 차지하고 있어 국내에서는 철강산업에 대한 관심이 커져가고 있다. 또한 철강산업은 국내에서 경제성장을 이끌어 온 국가기간산업중의 하나이다. 이에 본 연구에서는 산업연관분석을 이용하여 철강산업이 국민경제에 미치는 파급효과들을 시계열로 분석하여 보고자 한다. 먼저 수요유도형 모형을 이용하여 생산유발효과, 부가가치 유발효과 그리고 취업유발효과를 살펴 볼 것이며, 아울러 공급유도형 모형 및 레온티에프 가격모형을 적용하여 철강산업의 공급지장효과와 물가파급효과에 대하여 살펴보고자 한다. 【The steel industry is becoming more important around the world and the demand of steel is increasing. Korea is the 5th country of steel producing in the world and the attention in the steel industry is growing. The steel industry is one of the key industry in leading the economic growth in Korea. This study attempts to analyze by time-series the economic impacts of the steel industry using an inter-industry analysis Specifically, the study investigates production-inducing effect, value added inducing effect and employ-inducing effect of the steel industry based on demand-driven model and the study deals with supply shortage effect and sectoral price effect of the steel industry by using supply-driven model and Leontief price model.】

A Study on the Developing a New “Output Requirements Model” in Interindustry Analysis: Based on the Circulation System of Production between Final Demand, Total Output, and Final Output

A Study on the Developing a New “Output Requirements Model” in Interindustry Analysis: Based on the Circulation System of Production between Final Demand, Total Output, and Final Output

Technical Efficiency in Indian Small Scale Sector: An Inter-industry Analysis

Technical Efficiency in Indian Small Scale Sector: An Inter-industry Analysis

Interinstitutional linkage analysis: a social accounting matrix multiplier approach for the Mexican economy

By analogy to inter-industry analysis, this paper addresses the Inter-institutional linkage analysis through an accounting multiplier approach and a social accounting matrix framework that has a flow of funds. Such an analysis provides a useful tool to identify and quantify structural features of an economy in terms of productive and financial backward and forward linkage indices, which are estimated from the accounting multipliers. As an empirical application of this analysis, we identify and measure the accounting multipliers and the respective linkage indices for the Mexican economy. The results may help to improve the quality of policy decisions by detecting key linkage and partial linkage accounts (production sectors or institutions) and by providing a better understanding of how an impact of an initial exogenous injection runs within a complex economic structure.

Inter-industry analysis, consumption structure, and the household waste production structure

The standard waste input–output models for single region and multi-regions do not endogenously treat the dependent relationship between income distribution (household consumption) and household waste generation. As in Miyazawa and Masegi (1963), I introduce the propagation process of income distribution and household waste generation into the extended input–output analysis and reveal the hidden money flow resulting from the industrial and household waste disposal behaviour. From the empirical analysis, I find the endogenous income propagation effect resulting from the household waste treatments induced by unit household consumption (one million yen) was remarkably small, as compared to that for ordinary commodity productions. I also find that the contribution of industrial and household waste treatment and recycling activities to the 1995 Japanese economy was about one trillion yen (0.1% of the gross domestic output), considering the endogenous income propagation effects induced by the consumption behaviour of labours engaging in the waste treatments. Interestingly, the empirical results reveal that the contribution of one ton of the industrial waste to the Japanese economy was 5,730 yen, while one ton of the household waste brought about 8,266 yen of total economic impact. This indicates that the household waste disposal activity was more beneficial than the industrial waste disposal activity, considering the endogenous income propagation effects.

Analysis of water demand and water pollutant discharge using a regional input–output table: An application to the City of Chongqing, upstream of the Three Gorges Dam in China

China has faced serious water problems as a result of economic growth and some development projects and it is widely thought that integrated management, including socio-economic factors in each basin unit, is effective. Hence, the target of this paper is to evaluate the structures of water demand and water pollutant discharge with socio-economic activities in the City of Chongqing, the main city upstream of the Three Gorges Dam. First we have developed a methodology for estimating water demand and water pollutants (carbon, nitrogen and phosphorus) based on an inter-industry analysis model, and then applied it to the City of Chongqing. As a result, we conclude that industry is the largest source of water demand and water pollutants in the City of Chongqing and accounts for more than 50% of the total of each. Water demand from agriculture, forestry and livestock accounts for 35% of the total, and about 20% of water pollutants are discharged from agriculture, forestry and livestock. Furthermore, water pollutants from households constitute more than 20% of the total in the City of Chongqing though water demand and wastewater account for less than 15% of each total. In addition, it becomes clear that about 20% of the water demand and water pollutant discharge in the City of Chongqing is caused by other provinces and foreign countries, with most of the demand and discharge being industrial.

An intra- and inter-industry analysis of e-business effectiveness

Electronic business (EB) on the Internet has been promoted as a revolutionary technology that will transform the way we do business. This paper presents an intra- and inter-industry financial performance (FP) analysis of three industries: retail (R), consumer products (CP), and food beverages and tobacco (FBT). Financial statements of 165 companies selected from these three industries extending over a period of 10 years were reviewed to determine whether the EB activities have any significant impact on their FP, and whether this impact varied across industries. This comparative examination indicated that the EB companies did better than their non-EB counterparts in the post-EB period and the FBT industrial sector performed better than the R and CP sectors.

Input-output analysis of Vietnamese structural changes (1989-1995)

The pattern and sequencing of economic reform in transition economies have become a major issue of interest since the late 1980s. While Eastern Europe and especially the Soviet Union have experienced difficulties in their transition to a market-based economy, Vietnamese reform has proceeded relatively smoothly and resulted in significant improvement in economic performance and macroeconomic stabilization. The purpose of this paper is to analyze the distinctive features of the gradual reform process in Vietnam, and focused on the empirical study of the significant impacts of structural changes and their characteristics in its transition to a market-oriented economy. This paper then proceeds to a discussion of Vietnamese reform utilizing inter-industry analysis. In this analysis, a series of input-output tables are used, in which 25 sectors grouped into 9 major industries of 1989 and 1995 are classified. These input-output tables demonstrate how the output of each industry is distributed among industries and sectors of the economy. At the same time it shows the input to each industry from other industries and sectors. Derived and listed are the important coefficients and linkage effects for inter-industry relation analysis. The results of inter-industry analysis by using a series of input-output tables are as follows: 1) The ratio of domestic production in total supply of output declined due to increased imports; 2) The share of manufacturing production in domestic output and backward linkage effect to other sectors have declined in the open economy; 3) The agricultural sector has continued to play a greater role in overall production and exports than does the manufacturing sector. We find that the key to achieving sustained development in Vietnam will be the ability of the agriculture sector to yield sufficiently large agricultural surpluses on a consistent basis and then utilize such surpluses for productive investment in the underdeveloped industrial sector. The non-agricultural sector, utilizing this increased investment, must grow fast enough to absorb Vietnam's rowing labor surplus. Thus, to ensure sustained growth, Vietnam mu