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Economic impact of port sectors on South African economy: An input–output analysis


  • Chang, Young-Tae
  • Shin, Sung-Ho
  • Lee, Paul Tae-Woo


The port sectors in a country play an important role in its economy. This paper presents an input–output analysis on how the port sectors impact a concerned economy using the South African case. Moreover, this paper reports how a rectangular Supply and Use Table system of national accounts can be converted to a traditional square symmetric matrix type system. A range of models, such as demand-driven, supply-driven and price models, were derived for the estimation. From these models, the production effect together with the forward and backward linkage effects, price change effects and employment effects were estimated to determine the impact of port sectors. The overall forward linkage effect of the port sector was 0.97 and the backward one was 0.48, indicating that the port sector does not appear to use other sectors much in producing its activities whereas the port sector is used relatively more by other industries owing to its relatively high forward linkage effect. The overall impact effect of the port sector per unit shortage on all other products was found to be 1.1705. Therefore, one unit shortage in the port sector would have incurred a 17% loss to the entire economy in 2002. Leontief׳s price model was used for the scenario that what would occur if the price of port sector׳s cost was increased by various ranges from 5%, 10% and 30% to 50% and 100%.

Suggested Citation

  • Chang, Young-Tae & Shin, Sung-Ho & Lee, Paul Tae-Woo, 2014. "Economic impact of port sectors on South African economy: An input–output analysis," Transport Policy, Elsevier, vol. 35(C), pages 333-340.
  • Handle: RePEc:eee:trapol:v:35:y:2014:i:c:p:333-340
    DOI: 10.1016/j.tranpol.2014.04.006

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    References listed on IDEAS

    1. Romeo Danielis & Tullio Gregori, 2013. "An input-output-based methodology to estimate the economic role of a port: The case of the port system of the Friuli Venezia Giulia Region, Italy," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 15(2), pages 222-255, June.
    2. Lee, Min-Kyu & Yoo, Seung-Hoon, 2014. "The role of the capture fisheries and aquaculture sectors in the Korean national economy: An input–output analysis," Marine Policy, Elsevier, vol. 44(C), pages 448-456.
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    4. Kwak, Seung-Jun & Yoo, Seung-Hoon & Chang, Jeong-In, 2005. "The role of the maritime industry in the Korean national economy: an input-output analysis," Marine Policy, Elsevier, vol. 29(4), pages 371-383, July.
    5. Enrico Musso & Marco Benacchio & Claudio Ferrari, 2000. "Ports and Employment in Port Cities," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 2(4), pages 283-311, December.
    6. Su, Bin & Ang, B.W., 2014. "Input–output analysis of CO2 emissions embodied in trade: A multi-region model for China," Applied Energy, Elsevier, vol. 114(C), pages 377-384.
    7. W R Hughes, 1997. "A comparison of economic impacts with the use of economic base and input - output methodologies," Environment and Planning A, Pion Ltd, London, vol. 29(4), pages 673-684, April.
    8. Jan A. Van Der Linden, 2001. "The economic impact study of maritime policy issues: application to the German case," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(1), pages 33-54, January.
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    10. Neuwahl, Frederik & Löschel, Andreas & Mongelli, Ignazio & Delgado, Luis, 2008. "Employment impacts of EU biofuels policy: Combining bottom-up technology information and sectoral market simulations in an input-output framework," Ecological Economics, Elsevier, vol. 68(1-2), pages 447-460, December.
    11. Han, Sang-Yong & Yoo, Seung-Hoon & Kwak, Seung-Jun, 2004. "The role of the four electric power sectors in the Korean national economy: an input-output analysis," Energy Policy, Elsevier, vol. 32(13), pages 1531-1543, September.
    12. Su, Bin & Ang, B.W. & Low, Melissa, 2013. "Input–output analysis of CO2 emissions embodied in trade and the driving forces: Processing and normal exports," Ecological Economics, Elsevier, vol. 88(C), pages 119-125.
    13. Tsung-Chen Lee & Paul T-W. Lee & Tao Chen, 2012. "Economic Impact Analysis Of Port Development On The South African Economy," South African Journal of Economics, Economic Society of South Africa, vol. 80(2), pages 228-245, June.
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    Cited by:

    1. repec:eee:transa:v:118:y:2018:i:c:p:480-493 is not listed on IDEAS
    2. repec:eee:trapol:v:66:y:2018:i:c:p:9-16 is not listed on IDEAS
    3. repec:taf:transr:v:38:y:2018:i:5:p:654-677 is not listed on IDEAS
    4. Baghersad, Milad & Zobel, Christopher W., 2015. "Economic impact of production bottlenecks caused by disasters impacting interdependent industry sectors," International Journal of Production Economics, Elsevier, vol. 168(C), pages 71-80.
    5. repec:gam:jsusta:v:10:y:2018:i:12:p:4657-:d:188619 is not listed on IDEAS
    6. repec:eee:trapol:v:78:y:2019:i:c:p:1-7 is not listed on IDEAS
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    8. Seo, Young-Joon & Park, Jin Suk, 2016. "The estimation of minimum efficient scale of the port industry," Transport Policy, Elsevier, vol. 49(C), pages 168-175.
    9. ORALHAN Burcu & ALTAY TOPCU Betül & SÜMERLİ SARIGÜL Sevgi, 2016. "Determination Of Key Sectors In Turkish Economy By Using Input-Output Analysis," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 68(1), pages 178-192, June.


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