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An Analysis of Economic Effects of Airline Industry on Regional Economy by Using the MRIO Analysis

Park, Chu Hwan 1 정영근 1

1영남대학교

Accredited

ABSTRACT

This paper analyses the economic effects of the airline industry on the regional economy by 2005 MRIO Table. In the 1st step analysis, we look at the forward and backward linkage effects by using the production inducement coefficient. The results show that Pusan·Gyeongnam region’s intermediate goods input effect is the most high in the airline manufacturing industries and Metropolitan region’s intermediate goods input effect is the most high in the airline transportation industries. And, we look at backward linkage effects for the airfreight industries, the results show that Metropolitan regions output is the most high, but inter-region’s gap is not large. In the 2nd step analysis, we look at the value-added inducement effects on the regional economy. The results are same as product inducement effects in the 1st step, Therefore, airline industry shows very large regional gaps in terms of supplement. So, airline industry should be reconsidered in terms of regional development policy.

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