KOTI - Korea Transport institute

The demand for policy analysis of the economic effect from transport investment has increased greatly due to rapid domestic and foreign transport condition changes. As transport investment leads to productivity and employment increase, influencing the national economy, economic analysis of transport policy would suggest the magnitude and direction of the effect of transport investment. In particular, demand for policy analysis has increased in relation to the central government, yet practically, economic analysis models rarely exist that focus on the change of revenue and expenditure in the household and government. It is necessary to construct a comprehensive model considering not only for assessment of effects by transport taxation, transport fares, and financial resource supply methods, but also for analyzing impacts by transport sectors. This research has tried to develop a transport economic model that focuses on transportation industry and policy availability for conducting transport policy’s effect analysis. Transportation industry were specified into transport facility construction(road, railroad, subway, port, airport) and transport operation(road, railroad, port, airport). This study constructs the KOTI Economic model using the Social Account Matrix(SAM) and the Computable General Equilibrium(CGE) model. Based on the amount of income and expenditure by households, industries and government, the KOTI Economic model examined the effect of transport policy. By using the KOTI Economic model, the transportation policy's impact such as the transport fare policy and transport investment policy can be analyzed by transport sectors. The conclusions can provide direction for future expansion of model research and improve the efficiency transport policies. The result of this research can be useful for policy effect analysis by transport sectors like road and railroad. Furthermore, authors expect this research to be expanded as the basis for advanced transport policy establishment