An Input-Output Analysis of the Economic Role and Effects of the Mining Industry in South Korea
The mining industry (MI) has played a role in proving a stable supply of minerals for industrial production and human survival. The South Korean government is implementing various policies to promote the MI and needs quantitative information on the economic role and effects of the MI. Thus, this art...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2020-07-01
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| Series: | Minerals |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2075-163X/10/7/624 |
| _version_ | 1797562616133976064 |
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| author | Kyung-Hag Kim Ju-Hee Kim Seung-Hoon Yoo |
| author_facet | Kyung-Hag Kim Ju-Hee Kim Seung-Hoon Yoo |
| author_sort | Kyung-Hag Kim |
| collection | DOAJ |
| description | The mining industry (MI) has played a role in proving a stable supply of minerals for industrial production and human survival. The South Korean government is implementing various policies to promote the MI and needs quantitative information on the economic role and effects of the MI. Thus, this article aims to derive the information through an input-output (IO) analysis using the recently published 2015 IO table, subdividing the MI into four sectors, namely coal, crude petroleum and natural gas, metal ores, and non-metallic mineral mining, and treating the MI as exogenous rather than endogenous. To this end, three models are employed. First, the production-inducing effects, value-added creation effects, and wage-inducing effects of 1 dollar of production in the MI sector are analyzed using a demand-driven model. One dollar of production or investment in the sector causes 1.81 of production, 0.85 dollar of value-added, and 0.33 dollar of wage, respectively. Second, by applying a supply-driven model, it is found that one dollar of supply shortage in the MI causes 2.24 dollars of production failure throughout the national economy. Third, by utilizing a price-side model, it is discovered that a 10% increase in the price of output of the MI raises the overall price level by 0.025%. |
| first_indexed | 2024-03-10T18:31:28Z |
| format | Article |
| id | doaj.art-5279d70c71f041739d73f508fd01e199 |
| institution | Directory Open Access Journal |
| issn | 2075-163X |
| language | English |
| last_indexed | 2024-03-10T18:31:28Z |
| publishDate | 2020-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Minerals |
| spelling | doaj.art-5279d70c71f041739d73f508fd01e1992023-11-20T06:34:25ZengMDPI AGMinerals2075-163X2020-07-0110762410.3390/min10070624An Input-Output Analysis of the Economic Role and Effects of the Mining Industry in South KoreaKyung-Hag Kim0Ju-Hee Kim1Seung-Hoon Yoo2Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, KoreaDepartment of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, KoreaDepartment of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, KoreaThe mining industry (MI) has played a role in proving a stable supply of minerals for industrial production and human survival. The South Korean government is implementing various policies to promote the MI and needs quantitative information on the economic role and effects of the MI. Thus, this article aims to derive the information through an input-output (IO) analysis using the recently published 2015 IO table, subdividing the MI into four sectors, namely coal, crude petroleum and natural gas, metal ores, and non-metallic mineral mining, and treating the MI as exogenous rather than endogenous. To this end, three models are employed. First, the production-inducing effects, value-added creation effects, and wage-inducing effects of 1 dollar of production in the MI sector are analyzed using a demand-driven model. One dollar of production or investment in the sector causes 1.81 of production, 0.85 dollar of value-added, and 0.33 dollar of wage, respectively. Second, by applying a supply-driven model, it is found that one dollar of supply shortage in the MI causes 2.24 dollars of production failure throughout the national economy. Third, by utilizing a price-side model, it is discovered that a 10% increase in the price of output of the MI raises the overall price level by 0.025%.https://www.mdpi.com/2075-163X/10/7/624mining industryeconomic effectinput-output analysisdemand-driven modelsupply-driven modelprice-side model |
| spellingShingle | Kyung-Hag Kim Ju-Hee Kim Seung-Hoon Yoo An Input-Output Analysis of the Economic Role and Effects of the Mining Industry in South Korea Minerals mining industry economic effect input-output analysis demand-driven model supply-driven model price-side model |
| title | An Input-Output Analysis of the Economic Role and Effects of the Mining Industry in South Korea |
| title_full | An Input-Output Analysis of the Economic Role and Effects of the Mining Industry in South Korea |
| title_fullStr | An Input-Output Analysis of the Economic Role and Effects of the Mining Industry in South Korea |
| title_full_unstemmed | An Input-Output Analysis of the Economic Role and Effects of the Mining Industry in South Korea |
| title_short | An Input-Output Analysis of the Economic Role and Effects of the Mining Industry in South Korea |
| title_sort | input output analysis of the economic role and effects of the mining industry in south korea |
| topic | mining industry economic effect input-output analysis demand-driven model supply-driven model price-side model |
| url | https://www.mdpi.com/2075-163X/10/7/624 |
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