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The Optimum Level of Road and Railroad Development focusing on Manufacturing Value Added

Yi, Yoojin 1 Kim, Euijune 1

1서울대학교

Accredited

ABSTRACT

The purpose of this study is to analyze the optimum level of road and railroad development focusing on manufacturing value added in South Korea. An accessibility level leading to a positive marginal value added is considered to be in optimal range in terms of road and railroad development. By estimating a production function of manufacturing industries with respect to road and railroad accessibility and evaluating the maximum and minimum value which lead to a positive marginal value added, optimal ranges of road and railroad accessibility indices are derived. In general, the increase in the accessibility using road and railroad networks positively influences on manufacturing value added. However, additional improvement of road accessibility adversely affect the manufacturing value added when the level of accessibility exceed 145.9% of the current state. In local level, 46 and 52 cities and counties are observed to have excessive level of road accessibility and insufficient level of railroad accessibility, respectively.

Citation status

* References for papers published after 2023 are currently being built.

This paper was written with support from the National Research Foundation of Korea.