This comparative study between Korea and Japan explores the structure and the
production propagation effects of the food and beverage(FB) industry on the
economy in the input-output(I-O) model.
The followings are major findings of the paper. First, the input structure
shows the total value-added coefficients of the FB industry in both countries
have increased during the period of 1990∼95.
Second, compared to other manufacturing sectors, the FB industry the weak
backward and forward linkage effects on the whole economy.
Third, the internal and intersectoral propagation multipliers imply that the
FB industry of Korea is of lower dependency on the service activities contained
in the production process than that of Japan.
For more detailed analysis of the FB industry, we propose a further study by
disaggregating the industry into medium or small-sized sectors in the I-O
model.
