An Input–Output Analysis for the Economic Potential of a New Convergence Industry: A Focus on the Autonomous Vehicle Sector in South Korea

Kyunam Kim ()
Additional contact information
Kyunam Kim: Major of Intellectual Property, Division of Economics, College of Social Science, Kyonggi University, 154-42 Gwanggyosan-ro, Yeongtong-gu, Suwon-si 16227, Gyeonggi-do, Republic of Korea

Sustainability, 2024, vol. 16, issue 20, 1-21

Abstract: While it is crucial to grasp the economic potential in emerging convergence industries in order to develop effective policies and strategies for digital transformation, evaluating the potential is still challenging. This study develops a novel input–output model suitable for analyzing the economic potentials of subsectors in a new convergence industry. Furthermore, this research quantitatively assessed the economic potential of three sectors—components, vehicles, and services—within the autonomous vehicle industry in South Korea using the method newly proposed by this study and contrasted the results with those obtained from a traditional approach. It is found that the experimental approach introduced in this study can capture both the inter-sectoral relationships within the emerging convergence industry and its fundamental characteristics related to other sectors. As an empirical result, the autonomous vehicle service sector is found to drive the highest level of increase in production and labor for other industries. The vehicle sector has relatively high forward and backward-linkage effects, functioning as both supply and demand across the value chain of the autonomous vehicle industry. It also shows that the components sector has a relatively higher ripple effect on industries related to the infrastructure of autonomous vehicles, such as maintenance and energy fields. To rapidly establish an autonomous vehicle ecosystem and enhance its economic impact at the national level, it is essential to develop a “Soft Power” corresponding service sector. Consequently, the implementation of supportive and market-driven policies in this area is imperative.

Keywords: input–output analysis; autonomous vehicle industry; inter-industrial ripple effect; convergence sector analysis model; economic potentials (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/20/8816/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/20/8816/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:20:p:8816-:d:1496823

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().