This study examines the participation of the Chungcheong region in the global value chain (GVC), which has a large intermediate trade scale and an economic scale similar to that of Greece and Portugal. To measure the GVC participation of the Chungcheo...
This study examines the participation of the Chungcheong region in the global value chain (GVC), which has a large intermediate trade scale and an economic scale similar to that of Greece and Portugal. To measure the GVC participation of the Chungcheong region, the regional input-output tables of the Bank of Korea and the multi-regional input-output table (MRIO) of the Asian Development Bank (ADB) were integrated and connected in 2010, 2013, and 2015. First, the Chungcheong region was integrated from Daejeon, Sejong, Chungnam, and Chungbuk regions into a regional input-output table composed of two regions: Chungcheong and other regions outside of Chungcheong. The ADB's MRIO was integrated into an international input-output table consisting of Korea and other countries, and the Korean portion of the international input-output table was integrated using the regional input-output table composed of two regions previously prepared. The GVC participation of the Chungcheong region measured using the MRIO was found to be much higher than that of regions outside of Chungcheong and even higher than that of Greece and Portugal with similar economic scales. When examining the forward and backward participation of the GVC, the Chungcheong region showed a steady rate of around 45% for each during the target period. Furthermore, when divided into simple and complex participation, the forward simple participation rate of the Chungcheong region was higher than its complex participation rate, which was similar to that of regions outside of Chungcheong. However, the backward complex participation rate of the Chungcheong region was higher than its simple participation rate, which was different from other regions outside of Chungcheong. When examining by industry, the GVC participation of the manufacturing industry in the Chungcheong region was higher than that of the service industry, especially in the chemical, electrical and electronic equipment and precision instruments, and transport equipment industries. However, the transport equipment industry showed a different pattern from other industries, with a higher forward complex participation rate than its forward simple participation rate.