Earticle

In 2009, recently, Gim and Kim developed a new “Output-Output(OO) model” and table, as an alternative approach of the Input-Output(IO) model and table, to solve the consecutive connection and homogeneous solution problems naturally together through the output requirements matrix for output Cg derived from the decomposition by factors in the Leontief inverse Cf. On the basis of the latest research findings, the specific objectives of this paper are summarized as follows. (1) We evaluate the role and relative importance of the construction sector in the Korean national economy as varied economic indicators. (2) We perform an economic impact analysis affected on the whole industrial sector of the business cycle in the construction sector through the newly developed Output-Output model by the authors. (3) We present some simulation tests on economic impact effects to derive the relative importance of each sector on the basis of 2007 Input-Output Tables compiled by the Bank of Korea. The simulation test on the total output (△x) was done by the assumptions of three different types: ① the existence of economic growth (rate) in the construction sector only, ② the existence of equalized growth rates in the whole sector, and ③ the existence of unequalized growth rates in the entire sector. Moreover, the Spearman's rank correlation coefficients (SRCC), , are specially computed to observe the relevant structural economic characteristics of each sector among the final output requirements (γ s), the labor requirements for the change of final output (△L(△0)), and the income requirements for the same change of final output (△Y(△0)).