Applying input-output model to investigate the inter-industrial linkage of transportation industry in Taiwan

Abstract

This paper aims to investigate the role and influence of the transportation sector on the national economy of Taiwan by using input-output analysis. Data from the period 1991-2006 is used to analyze the inter-industrial linkage effects in 33 sectors. The results show that the transportation industry in Taiwan has more strength in absorbing the products of related industries rather than being used as an input by other industries; it has a relatively strong capacity for pulling in other industries. Road transportation also has comparatively more strength in supporting other industries domestically. Taking the transportation industry as exogenous, this study further explores its economic effects on other sectors, including productioninducing, supply-shortage, and price effects.