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Supply Driven Input-Output Analysis: Case of 2010-2011 Foot-and-Mouth Disease in Korea

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  • Kim, Man-keun

Abstract

The objective of this study is to determine the direct and indirect economic impacts of the 2010-2011 Foot-and-Mouth Disease (FMD) outbreaks in Korea using a supply-driven input-output (IO) model. The supply-driven model is better than a standard demand-driven IO model in situations where the event alters sectoral production not the final demand. Obviously, the FMD outbreak is a supply reduction question and the standard IO approach may not completely reflect all the economic impacts. Both backward linkage (upstream sectors) and forward linkage (downstream sectors) effects of the FMD outbreaks are measured. The study shows that backward linkage effects in feed and manufacturing sectors and forward effects in dairy and livestock processing sectors are strong. Total direct and indirect economic impact is estimated to be 7.6 trillion Korean Won which is much larger than the economic impact from the standard final demand-driven IO analysis.

Suggested Citation

  • Kim, Man-keun, 2015. "Supply Driven Input-Output Analysis: Case of 2010-2011 Foot-and-Mouth Disease in Korea," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 38(2), pages 1-16, June.
    • Handle: RePEc:ags:jordng:229788
    DOI: 10.22004/ag.econ.229788
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    References listed on IDEAS

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    2. Mahul, Olivier & Gohin, Alexandre, 1999. "Irreversible Decision Making in Contagious Animal Disease Control under Uncertainty: An Illustration Using FMD in Brittany," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(1), pages 39-58, March.
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    4. Olivier Mahul & Alexandre Gohin, 1999. "Irreversible decision making in contagious animal disease control under uncertainty : an illustration using FMD in Brittany," Post-Print hal-01952087, HAL.
    5. Bumsoo Lee & Jiyoung Park & Peter Gordon & James E. Moore II & Harry W. Richardson, 2012. "Estimating the State-by-State Economic Impacts of a Foot-and-Mouth Disease Attack," International Regional Science Review, , vol. 35(1), pages 26-47, January.
    6. Johnson, Thomas G. & Kulshreshtha, Surendra N., 1982. "Exogenizing Agriculture In An Input-Output Model To Estimate Relative Impacts Of Different Farm Types," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-12, December.
    7. Pendell, Dustin L. & Leatherman, John & Schroeder, Ted C. & Alward, Gregory S., 2007. "The Economic Impacts of a Foot-And-Mouth Disease Outbreak: A Regional Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(s1), pages 19-33, October.
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    Cited by:

    1. Menezes, Tais & Cunha, Marcelo Pereira da, 2021. "Input-Output Analysis: The Case of Foot-And-Mouth Disease in Brazil," Conference papers 333264, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Kim, Dongseok, 2021. "Measuring the Impact of a Trade Dispute with a Supply-side Shock Using a Supply-driven Input-Output Analysis: Korea-Japan Dispute Case," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 43(1), pages 29-52.

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