An Interindustry Analysis of Production Between Korea and Japan (Through The Foreign Trade)

Byung Hyun Kim
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Byung Hyun Kim: Hallym University

Korean Economic Review, 2001, vol. 17, 207-234

Abstract: This study examines the interdependence of production between Korea and Japan through the foreign trade. The approach undertaken in this production analysis is to set up an input-output model in which the outputs of all producing sectors in both Korea and Japan are considered as variables. The study verifies the traditional theory that Korea is far more sensitive to relative growth in Japan, than is Japan to relative Korean growth. It also points to a conclusion that is perhaps not so well recognized: Japan is much more sensitive to changes in Korean economic activity than is Korea to changes in Japanese economic activity in absolute magnitude.

Keywords: Interindustry analysis; sentivity; dependence; vulnerability; competitive and non-competitive imports (search for similar items in EconPapers)
JEL-codes: F14 P52 (search for similar items in EconPapers)
Date: 2001
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