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Impact of the Smart City Industry on the Korean National Economy: Input-Output Analysis

Author

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  • Kyunam Kim

    (Department of Intellectual Property, College of Economics & Business Administration, Kyonggi University, 154-42 Gwanggyosan-Ro, Yeongtong-Gu, Suwon-Si 16227, South Korea)

  • Jung-Kyu Jung

    (Korea Institute of Science & Technology Evaluation and Planning (KISTEP), 60 Mabang-Ro, Seocho-Gu, Seoul 06775, South Korea)

  • Jae Young Choi

    (Graduate School of Technology & Innovation Management, Hanyang University, 222 Wangsimni-ro, Seongdong-go, Seoul 04763, South Korea)

Abstract

The characteristics of the smart city industry and its effects on the national economy of Korea are investigated using input-output analysis. The definition and industrial classification of a smart city are established using the Delphi technique for experts in various fields, from information and communication technologies (ICT) to governmental policies for urban matters. The results of the analysis, including the production, value added and employment induction effects, show that the smart city industry has intermediate characteristics between ICT and urban construction industries, indicating that acquisition of the competitive edge of both the ICT and construction industries is the key to the success of the smart city industry. The crucial industries related to the smart city industry are identified based on an analysis of the forward and backward linkage effects, the results of which suggest the importance of the relevant service industries. The economic effects on the national economy induced by the governmental program for smart city demonstration are estimated using input-output analysis results. Overall, the results of this study indicate that facilitation of the smart city industry plays a key role not only in the sustainable city, but also in the growth of the national economy.

Suggested Citation

  • Kyunam Kim & Jung-Kyu Jung & Jae Young Choi, 2016. "Impact of the Smart City Industry on the Korean National Economy: Input-Output Analysis," Sustainability, MDPI, vol. 8(7), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:7:p:649-:d:73587
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    References listed on IDEAS

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    3. Sung-Wook Choi & Yong Jae Shin, 2023. "Role of Smart Farm as a Tool for Sustainable Economic Growth of Korean Agriculture: Using Input–Output Analysis," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    4. Jun, Wang Ki & Lee, Min-Kyu & Choi, Jae Young, 2018. "Impact of the smart port industry on the Korean national economy using input-output analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 480-493.
    5. Guo, Qingbin & Wang, Yong & Dong, Xiaobin, 2022. "Effects of smart city construction on energy saving and CO2 emission reduction: Evidence from China," Applied Energy, Elsevier, vol. 313(C).
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    7. Yong Jae Shin & Yongrok Choi, 2019. "Feasibility of the Fintech Industry as an Innovation Platform for Sustainable Economic Growth in Korea," Sustainability, MDPI, vol. 11(19), pages 1-21, September.
    8. Sung-Su Jo & Hoon Han & Yountaik Leem & Sang-Ho Lee, 2021. "Sustainable Smart Cities and Industrial Ecosystem: Structural and Relational Changes of the Smart City Industries in Korea," Sustainability, MDPI, vol. 13(17), pages 1-17, September.
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    10. Rongjie Lv & Hao Gao, 2023. "Effects of smart city construction on employment: mechanism and evidence from China," Empirical Economics, Springer, vol. 65(5), pages 2393-2425, November.
    11. Jun, Wang Ki & An, Myung Ho & Choi, Jae Young, 2022. "Impact of the connected & autonomous vehicle industry on the Korean national economy using input-output analysis," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
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