Abstract
Using input-output analysis, this study investigates the economic impact of the logistics industry and its four sub-sectors: land freight, water freight, air freight and logistics facilities. The inter-industry linkage model shows that land freight and logistics facilities have large pull effects on the economy. Estimates from the production-inducing model indicate that investments in the logistics industry have considerable effects on both upstream and downstream industries. The employment-inducing model suggests that although employment-inducing effects have fallen over time, total induced employment has risen, particularly for permanent jobs. Lastly, estimates from the supply-shortage model indicate large effects for land freight which highlights the need for greater diversity in transportation modes. The findings and their implications may be useful to formulate effective policies in Korea.