The Economic Effect Analysis of the Oil Industry in Korea

In this analysis, forward linkage index and backward linkage index were derived from the Input-Output Statistics from 1970 to 2015 to analyze the economic effect of the oil industry. The target sectors were crude oil, natural gas, basic petrochemical products, petroleum products, naphtha, fuel oil, other petroleum products, basic organic chemicals, basic organic chemical products, intermediate organic chemical products, and other basic organic chemical products. According to the analysis results, the backward linkage index were greater than the forward linage index. The backward linkage index of petrochemical product industries has changed due to technological innovation and improvement in production processes. These results show that the performance and role of the oil industry in the improvement system have changed.