Supply Shortage Effect Research Articles

Identifying the Role of Knowledge-Intensive Business Services in the Korean Economy as a Sustainable Innovation Tool Using Input–Output Analysis

This study aimed to determine the role of KIBSs as a tool for sustainable innovation in a country’s economic system. Specifically, the degree and role of their impact on the Korean economy were analyzed and compared for the entire KIBS sector, T-KIBSs (a new technology-based professional service), P-KIBSs (a traditional professional service), and every subsector. For this purpose, the demand inducement model, supply inducement model, and interlinkage effects method were applied using the 2019 input–output table published in 2022. The analysis showed that the indirect production inducement effect of the entire KIBS industry on other industries was KRW 0.800, the indirect added value inducement effect was KRW 0.330, and the supply disruption effect was KRW 1.144. For T-KIBS, the indirect production inducement effect was KRW 0.687, the indirect added value inducement effect was KRW 0.272, and the supply disruption effect was KRW 0.730. For P-KIBSs, the indirect production inducement effect was KRW 1.472, the indirect added value inducement effect was KRW 0.646, and the supply disruption effect was KRW 2.657. Finally, regarding the economic ripple effect of the KIBS subsector, legal and management support services and advertisements corresponding to P-KIBSs showed higher figures than the T-KIBS subsectors in all sectors, including production inducement, the added value inducement effect, and the supply disruption effect. These results revealed that in the South Korean economic system, KIBSs contribute to production and value addition across all industrial sectors. It is apparent that the absence of supply significantly disrupts other industries. Furthermore, production inducement effects are evenly distributed among all the KIBS subsectors in the secondary and tertiary sectors, while the value-added effects have a greater impact on the tertiary sector. In terms of the supply shortage effects, the secondary sector experiences a more significant impact. This underscores the crucial role of KIBSs in sustaining and enhancing overall economic activity in South Korea.

Analysis of Changes in Inter-Industrial Linkages and Economic Effects of Coal Industry in China Using Input–Output Model

This research quantifies the inter-industrial linkages (forward linkages and backward linkages) and economic effects (production-inducing effects and supply-shortage effects) and their changes through the input–output analysis of China’s coal industry in different time periods (2005, 2010, 2015, 2020). The results show that, from an overall point of view, the linkages (backward and forward) between the coal industry and other industries, as well as the economic effects of the coal sector, have tended to weaken in recent years, and both of these indicators for the coal sector in 2020 are weaker than the levels in 2005. However, individual sectors differ from the overall trend: the non-metal mineral products sector has shown an upward trend in recent years in the degree of total demand for coal sector products and the degree of influence by supply shortages in the coal sector, while these two indicators for the construction sector have been on an upward trend since 2005; the electricity, heat production, and supply sector has shown an upward trend in recent years in the degree of influence by supply shortages in the coal sector. Based on the analytical results of this study, some policy insights are provided for China’s low-carbon transition.

Role of Smart Farm as a Tool for Sustainable Economic Growth of Korean Agriculture: Using Input–Output Analysis

This study focused on smart farms in Korea to confirm that the fourth industrial revolution technology is a tool that can be used for sustainable economic development in agriculture. This study used the input–output table, which included the production-inducing effects of the demand inducement model, value-added inducing effects, supply shortage effects of the supply inducement model, and the interlinkage effect. These methods were used to compare the impact of smart farm machinery on agriculture and the impact of smart farms on the Korean economy compared to conventional agriculture, thereby confirming the extent of the effect of fourth industrial revolution technology on agriculture. This study was conducted to determine whether this agricultural sector could lead to sustainable economic development. The analysis revealed that the production-inducing effects of smart farms showed a greater ripple effect than those of the agricultural sector. However, both value-added inducing effects and supply shortage effects showed a larger ripple effect in the agricultural sector. Considering only the indirect effect, the smart farms were found to evenly affect secondary and tertiary industries. In the case of value-added inducing and supply shortage effects, agriculture was found to have a greater impact on the secondary industry, whereas smart agri-machines and farms had a greater impact on the tertiary industry. Moreover, according to the interlinkage effect, agriculture was classified as a raw industry with final demand, and smart farms as a manufacturing industry with intermediate demand. These results have several implications. For the fourth industrial revolution technology to lead sustainable economic growth in agriculture, continuous creation of new value by developing various types of business models linked to other industries in consideration of the industrial characteristics of smart farms and agri-machines is necessary. In addition, to fully demonstrate the economic effects of smart farms, continuous management and support are required so that smart technologies can be strategically utilized in the agricultural sector.

Role of Natural Gas Supply Sector in the National Economy: A Comparative Analysis between South Korea and Japan

This study examines the role of the natural gas supply sector in the national economy by applying input–output analysis to South Korea and Japan. Specifically, the production-inducing effect, value-added creation effect, wage-inducing effect, employment-inducing effect, supply shortage effect, and price-inducing effect were analyzed using an input–output table of South Korea and Japan. As a result, the production-inducing effect, value-added creation effect, and employment-inducing effect of same investment amount in the natural gas supply sector were greater in Japan than in South Korea. On the other hand, the wage-inducing effect of an investment of USD 1 in the natural gas supply sector was found to be greater in South Korea than in Japan. In addition, the supply shortage effect and price-inducing effect in the natural gas supply sector were greater in South Korea than in Japan. The causes of differences in analysis results for each country and their implications were discussed. The results of this study could be a useful reference for the government to establish policies related to natural gas supply in the future.

The role of different transportation modes in China's national economy: An input–output analysis

This study aims to analyse the role of different transportation modes in China's national economy and provide a reference for transportation policy. To this end, we use input–output analysis to evaluate the inter-industry linkage effect, production-inducing effect, supply shortage effect, and employment-inducing effect of five transportation modes (rail, road, water, air, and pipeline) in China from 2007 to 2020. The contributions of these different transportation modes to China's economy and their evolution are quantitatively investigated. The results reveal that the forward linkage effect of road transportation in China is the highest and shows an upward trend. The backward linkage effect of air transportation is the highest but shows a declining trend while the supply shortage effect of pipeline transportation is the highest. COVID-19 had a significant effect on transportation in 2020, with only rail and water maintaining growth in their production-inducing and supply shortage effects on the economy. Meanwhile, road, air, and pipeline transportation all showed varying degrees of decline in their contributions to the economy in 2020. Regarding employment, the employment-inducing effect multipliers of the five transportation modes are all gradually decreasing, showing that the transportation industry is shifting from a labour-intensive orientation toward a technology-intensive one. These results have significance for understanding the economic contribution and evolution of China's transportation industries. They can provide a reference for related policy formulation and for improving transportation management.

Changing characteristics of the industrial correlation and economic contribution of air transport in China: An input–output analysis

To investigate changing characteristics of the industrial correlation and economic contribution of air transport in China in different periods, the industry linkage effect and the industry ripple effect of air transport were assessed based on an input–output analysis over the period 2007–2020. Taking the air transport sector as an exogenous variable, the production-inducing effect and the supply shortage effect were calculated, and their changing characteristics were analyzed. The result shows that China's air transport industry is gradually changing its close linkages with secondary industries, and is instead strengthening its interaction with some tertiary industries. Before the COVID-19 outbreak in 2020, the production-inducing multiplier of air transport was trending downwards and the supply shortage multiplier was trending upwards. After the COVID-19 outbreak, China's air transport industry was hit hard and both the production-inducing effect and the supply shortage effect decreased significantly. The results of this paper are of great significance in the evaluation of the industrial correlation and economic contribution of air transport and can serve as a reference for formulating policies and improving the management of the air transport industry.

Exploring the role of the fisheries sector in China’s national economy: An input–output analysis

In China, fisheries include a combination of capture and aquaculture activities. In the context of China Fisheries and Aquaculture Statistics Yearbooks, the fisheries sector includes three economic sub-sectors: the fisheries primary sector (e.g., saltwater or freshwater, wild or farmed capture, and aquaculture), the fisheries secondary sector (e.g., aquatic processing, fisheries machine and tools manufacturing, fisheries feed, and construction), and the fisheries tertiary sector (e.g., fisheries products storage, transportation service, and leisure fishery). This study disaggregates these three fisheries sub-sectors as exogenous and investigates the role of the fisheries sectors in China from 2000 to 2018. Through an input-output (I–O) analysis, we quantify their socioeconomic impacts by determining the cross-sectoral linkage effects, the production-inducing effects, the supply-shortage effects, and the employment-inducing effects. Finally, these findings provide reliable information for policymakers to understand the fisheries value chain and to formulate fisheries regulations.

로봇산업이 타 산업에 미치는 경제적 효과에 관한 연구

This study set out to analyze the effects of the robot industry on the South Korean economy in order to make a contribution to the South Korean government"s elaborate policies and economic achievements with regard to the robot industry. For this purpose, the robot industry as the research topic was divided into manufacturing robots and the entire robot industry for analysis. Used in analysis were the demand & supply-driven model of input-output analysis and Leontif’s Price Model and Inter-industry Analysis. The analysis results show that manufacturing robots had production-inducing effects of 1.645 in the demand-driven model and added value-inducing effects of 0.623 on other industries. They also had supply shortage effects of 0.036 in the supply-driven model. The industry of manufacturing robots itself had production-inducing effects of 1.118 and added value-inducing effects of 0.272. Robots had high impacts on the manufacturing industry, recording production-inducing effects of 65.2%, supply shortage effects of 70.8%, and rather lower added value-inducing effects of 53.8%. The entire robot industry including manufacturing, service, and SW&parts had production-inducing effects of 0.703 and added value-inducing effects of 0.295 in the demand-driven model and supply shortage effects of 0.611 in the supply-driven model on other industries. As for the percentage of effects by the industry, production-inducing effects recorded 51.6% for secondary industries; added value-inducing effects 53.9% for tertiary industries; and supply shortage effects 64.2%. The inter-industry analysis results reveal that both the entire robot industry and manufacturing robots had lower forward linkage effects than 1 and a little higher backward linkage effects than 1, being categorized into the intermediate demand primary industry type.

Comparison of the economic effects of nuclear power and renewable energy deployment in South Korea

The South Korean government has been pushing for an energy transition, reducing nuclear power (NP) generation and increasing renewable energy (RE) generation, since mid-2017. The government needs quantitative information on the economic effects of the two sectors. This article aims to derive such information through an input-output (IO) analysis using the recently published 2015 IO table. The production-inducing effects, value-added creation effects, and wage-inducing effects of one dollar of production in the two sectors are analyzed using a demand-driven model. One dollar of production or investment in the two sectors causes 1.606 and 1.718 dollars of production, 0.856 and 0.859 dollars of value-added, and 0.168 and 0.174 dollars of wage, respectively. The economic effects of the RE sector are greater than those of the NP sector. The supply-shortage effects of the two sectors are examined using a supply-driven model. One dollar of supply shortage in the RE and NP sectors brings 1.673 and 1.670 dollars of production failure, respectively. The production failure resulting from the supply shortage in the RE sector is smaller than that of the NP sector. A price-side model also revealed that a 10% increase in the price of output in the NP and RE sectors raises the overall price levels by 0.05858% and 0.01304%, respectively. The RE sector is thus better than the NP sector in terms of minimizing supply shortage effects and price-pervasive effects, as well as maximizing economic effects.

The role of the port industry in China's national economy: An input–output analysis

Over the past 30 years, China's port industry has developed by leaps and bounds. According to input–output (IO) analysis, this study considers the port industry as exogenous and assesses its economic impacts. Specifically, the industry linkage effect, the production-inducing effect, the sectoral supply shortage effect, and the employment-inducing effect are presented over the period 1987–2012. These models are effective to quantify the direct and indirect contribution of China's port industry and to analyse the ports' evolution over time. Finally, policy applications within China's port industry of input–output analysis are outlined.

The Industrial Linkages and Supply Effects of the U.S. R&D Sector: Comparison with OECD Countries

The industrial linkages and supply effects of the U.S. Research and Development (R&D) sector are examined using the input-output approach. Although the U.S. has the highest R&D intensity among major OECD countries, the U.S. R&D sector has relatively low backward and forward linkages to other industrial sectors. Moreover, the supply investment effect of the U.S. R&D sector is the least, showing that the sector is not likely to stimulate the production of the other sectors. The supply shortage effect of the U.S. R&D sector is also the least among the countries. The findings in this study imply that improving the linkages and supply effects of the R&D sector may be more important than increasing only the amount of R&D expenditure in the U.S.

The role of the marine industry in China's national economy: An input–output analysis

Perception of the importance of the marine industry is crucial for marine policy measures. Based on China's input–output tables for 2002, 2007, and 2012, this study disaggregates 12 major marine sectors as exogenous and assesses the impacts of China's marine industry by determining the inter-industry linkage effect, the production-inducing effect, the sectoral supply shortage effect, and the employment-inducing effect. These models are effective in estimating the contribution of the marine industry and explore the evolution of marine industrial structure. Finally, policy applications are proposed to provide reliable and useful information for China's policymakers to promote marine policies and manage the marine system.

A mathematical/physics model to measure the role of information and communication technology in some economies: the Chinese case

Abstract Since the Reform and Opening-up in 1978, China has experienced a huge sustainable growth of gross domestic product (GDP) and an incredible development in Information and Communication Technology (ICT). This study aims to utilize an input-output (I-O) approach to explore the role of ICT in Chinese national economy. Specifically, we employ a static I-O framework, and analyze three topics in its application: the inter-industry linkage effect, the production inducing effect, and the supply shortage effect. We pay particular attention to the ICT manufacturing sector and ICT service-providing sector by taking the sectors as exogenous and investigating their economic impacts, respectively. The results suggest that (1) the ICT manufacturing sector has a high backward linkage effect, an intermediate forward linkage effect, a relatively low production inducing effect, and a low supply shortage effect, it suggests that ICT manufacturing sector has a powerful capacity for pulling the production activities of the whole economy. (2) The inter-industry linkage effect and supply shortage effect of ICT service-providing is low, but the production inducing effect of ICT service-providing is high, which suggests that the impact of an increase in ICT service-providing investment on the total output of all other sectors is large.

산업연관분석을 활용한 전력의 산업별 공급지장비용 평가 : OECD 국가를 중심으로

국가 기간산업 중 하나인 전력산업은 산출물인 전력을 각 산업부문에 중간재로 공급하고 있으므로 전력의 공급지장이 국민경제에 미치는 영향은 큰 편이다. 만약 전력 공급이 원활치 못하게 되면 직접적으로는 생산 차질, 원료 공급 불안, 각종 장비 고장 등의 생산 및 공정상의 문제를 일으키고 간접적으로는 생산 차질에 따른 전력 관련 산업의 생산 손실부터 실업 및 물가 상승 등의 문제까지 등장할 수 있다. 이에 본 논문에서는 전력산업 산출물 1원어치의 공급지장이 타 산업에 미치는 부정적 생산차질 효과를 의미하는 공급지장효과를 분석하고자 한다. 이를 위해 산업간 중간재의 흐름을 하나의 표로 나타낸 산업연관표를 활용한 산업연관분석을 적용하고자 한다. 보다 구체적으로는 OECD 주요국을 대상으로 공급유도형 모형을 활용하여 공급지장 효과를 분석한다. 공급지장효과의 값은 덴마크가 1.682로 가장 크며 다음으로 한국, 일본, 호주, 영국 순으로 나타났다. As the electricity produced from the electricity industry, a national key industry in Korea, are supplied to other industries as an intermediate goods, the supply shortage of electricity industry has a large impact on the national economy. This paper attempts to analyze the supply shortage effects which are defined as the negative impact of one won of supply failure in the electricity on the production of other industries. To this end, an input-output analysis using an input-output (I-O) table describing inter-industry flow of intermediate goods is applied. More concretely, the supply-driven model is applied subject to the OECD countries. The value of the supply effects interfere with Denmark's best large 1.682 was followed by South Korea, Japan, Australia, the UK.

The role of transportation sectors in the Korean national economy: An input-output analysis

The transportation industry has been playing an important role in the economic development of Korea and, thus, has become a critical factor in sustaining the well-being of the Korean people. This paper attempts to analyze the economic impacts of four transportation modes using input-output (I-O) analysis, with specific application to Korea. To this end, we apply the I-O models to the Korean I-O tables generated by the Bank of Korea, paying particular attention to the four transportation sectors in Korea (rail, road, water, and air transportations), considering them as exogenous, and then determining their impacts. Specifically, the production-inducing effects, supply shortage effects, sectoral price effects, forward linkage effects, and backward linkage effects of the four transportation modes are quantitatively derived over the period 2000–2010. For example, the production-inducing effect of a KRW 1.0 production or investment in transportation is larger in the petroleum and transportation equipment sectors than in other sectors. Furthermore, the rail and road transportation sectors have greater supply shortage effects than the other transportation sectors. Finally, the potential uses of the results of this analysis are presented from the perspective of policy instruments, and policy implications are discussed.

국내 정유산업의 공급지장효과 분석

Abstract - As the petroleum products produced from the Oil refi nery industry (ORI), a national key industry in Korea, are supplied to other industries as an intermediate g oods, the supply shortage of ORI has a large impact on the national economy. This paper attempts to an alyze the supply shortage effects which are defined as the negative impact of one won of supply failure in the ORI on the production of other industries. To this end, an inter-industry analysis using an in put-output (I-O) table describing inter-industry flow of intermediate goods is applied. More concretely, the sup ply-driven model is employed over the period 1990-2012. In addition, the results are compared with th ose for shipbuilding, semiconductor, and steel industries. The results show that the supply shortage eff ects are computed to be 0.9205 won when using 2012 I-O table. More specifically, the supply shortage ef fects on chemical products and transportation industries are computed to be 0.2113 and 0.1140, which are rela tively large, The supply shortage effect of ORI is smaller than that of steel industry (1.4131 won), but larger than that of shipbuilding industry (0.0586 won) and that of semiconductor industry (0.1111 won).

한국과 일본 전력산업의 경제적 파급효과 비교 분석

This study attempts to examine the economic impacts of electricity industry in Korea and Japan using an inter-industry analysis. Specifically, the study analyzes and compares electricity industry between Japan and Korea through production-inducing effect and value added inducing effect of electricity industry based on demand-driven model. Moreover, this study deals with supply shortage effect and sectoral price effect by using supply-driven model and Leontief price model, respectively. This study analyses the electricity industry through exogenous approach. The results show that electricity industry induces prodution-inducing effect of 0.5946 won in other industries in Korea and 0.5446 yen in other industries in Japan. Value-added-inducing effects are 0.1716 won in other in other industries in Korea and 0.2929 yen in other industries in Japan. Supply shortage effects of electricity industry are 1.5932 won in other industries in Korea and 1.2801 yen in other industries in Japan. And sectoral price effects are 0.2113% in Korea and 0.2196% in Japan due to the price increase of 10% of electricity industry.

Economic effects of sewage and wastewater treatment service sector: an inter-industry analysis

The economic effects of sewage and wastewater treatment service (SWTS) sector on other sectors have been rarely investigated in the literature. This paper attempts to apply an inter-industry analysis to looking into the economic effects of the SWTS sector. To this end, the most recently published 2012 input-output table is used here. In particular, the SWTS sector is specified as exogeneous to identify the economic effects of the SWTS sector on other sectors. Production-inducing effect, value-added creation effect, and employment-inducing effect are quantified based on demand-driven model. Supply shortage effect and price pervasive effect are also analyzed employing supply-driven model and Leontief price model, respectively. The results show that production-inducing effect and value-added creation effect of a unit of investment or production in SWTS sector are estimated to be 1.7076 and 0.7392, respectively. The employment-inducing effect of one billion of investment or production in the SWTS sector is computed to be 11.0498 persons. The shortage effect of the SWTS sector amounts to 0.8417 won. The overall price effect of the 10% increase in the price of SWTS sector is calculated to be 0.0115%. This quantitative information can be utilized in predicting the economic effects of the SWTS sector-related activities or policy-making.

IT산업이 금융서비스에 미치는 경제적 효과

Abstract IT is based industry on finance and insurance services and is essential equipment of survival for competitive on market. The importance of IT industry on finance and insurance is bigger than other industries. So, This study examinate effects of hardware and software divided by IT industry on each 6 finance and insurances. Research models are production inducing effects of Demand -Driven model, Shortage effects of Supply-Driven model finally, Leontief's price model by using data for analysis is Input-Output table for 2000~2009.Results are that IT Service effects are more impact than IT hardware effects on Finance and Insurance Service. Especially, IT service's supply shortage effects is 0.0847KWR to produce 1KRW of finance and insurance service for 2-fold increase compared to 2000. In addition, Central Bank and banking institutions of finance and insurance services are the greatest impact from IT industry. These are which is increasing to interdependence between IT industry and finance and insurance service.

집단에너지 부문과 도시가스 부문의 경제적 파급효과 비교분석

This paper attempts to conduct a comparative analysis on the economic effects of integrated-energy and manufactured gas supply sectors. To this end, an input-output (I-O) analysis is applied using most recently published 2011 I-O table. In particular, the two sectors are specified as exogeneous to identify the economic effects on own and other sectors. Production-inducing effect, value-added creation effect, and employment-inducing effect are quantified based on demand-driven model. Supply shortage effect and price pervasive effect are analyzed employing supply-driven model and Leontief price model, respectively. The results show that production-inducing effect, value-added creation effect, and employment-inducing effect of integrated-energy and manufactured gas supply sectors are estimated to be 1.5461 vs. 1.0297, 0.4759 vs. 0.1941, and 2.2885 vs. 0.4053 respectively. Price pervasive effects of the 10% increase in integrated-energy and manufactured gas supply sectors are computed to be 0.0127% and 0.1585%, respectively. This information can be utilized in forecasting the economic effects of introducing integrated-energy or manufactured gas as a heating