An Analysis of Employment and Value-Added Contribution Rates for Regions and Industries by Exports

Abstract

Purpose This study aims to analyze the employment effects of value-added exports on each province and industry in South Korea. Design/Methodology/Approach The research data used in this study come from the Intra-Regional Input-Output Table created by the Bank of Korea. The approach in this paper was a regional input-output analysis based on valued-added exports. Findings The bottom line depends on how much value-added exports affect employment in each region and industry. These are all in decline in most regions and industries. However, in specific industries in Ulsan and Gyeongnam, where exports were high compared to regional production, the employment coefficient increased. Regarding the contribution rate, Gyeongbuk and Gyeongnam have a high rate, and some manufacturing sectors are also high. Research Implications There are two research implications. First, this study is the first research to analyze the employment effects of each industry in provinces that have not been deal with. Second, the impacts on exports were found to be different in each sector. This suggests that the policymaker should consider regional and industry levels for each region in establishing policy.