KOTI - Korea Transport institute

It is implicitly and explicitly important to understand how much the transportation industry influences national economy in the process of establishing transportation polices. In future, the level of users’ demands for transportation services will be increased and the transportation technologies will change much faster. Considering such circumstances, to examine the effect of transportation industry on national economy is well-timed effort. This study was initiated to analyze the effect of the transportation industry on national economy in order to establish appropriate transportation policies. The traditional transportation industry includes transportation and logistics industry only. In this study, however, the scope of the transportation industry is expanded to include even the transportation-related infrastructure construction industry as well as the transportation carrier manufacture industry. Among diverse methods used to analyze the effects on national economy, the input-output analysis method is adopted in this study. In addition, the effect of the transportation industry on national economy is analyzed using time series data in order to understand the past effects as well as current effects on national economy. This approach makes it possible to identify the appropriate future transportation policies by providing necessary information to understand past trends. To this end, the 40-year-long effects of transportation industry from 1975 to 2012 were analyzed. In depth, the effects, including effect on production industry, supply shortage effect, and effect of increase in price, are analyzed for other industries as well as the transportation industry. As a result of analysis, it is found that the time sequential changes in the transportation industry is in collusion with the change of the investment on transportation-related SOC. Based on this finding, it must by emphasized that the transportation industry should be importantly considered when the government establish the policies on transportation-related investment in future. In summary, this study delivers important findings from analyzing diverse effects of the transportation industry on national economy using the input-out analysis method and the 40-year-long time series data. In addition, this study prospects the future changes of the transportation industry by identifying the future challenges to transportation and our society. Finally, this study provides the important implications which are necessary to establish effective policies for the sound advance of the future transportation industry.