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Abstract
This paper presents the consistent and systematic basis of Inter-industry analysis for estimating the economic impact of the horse industry in Korea, which first incorporates a new approach of applying both demand-driven model and exogenous specification model to discover further realistic implications. We improve the estimation stability by resolving over-classification problems in horse-racing sector and redetermine the intermediate input structure of the horse industry following the current industry classification standard of the Bank of Korea which can be a good guide to various future researches. As a result, current market volume, production-inducing effect, value-added inducing effect, labor-inducing effect and employment-inducing effect are explored such as 2,284.5 billion won, 3,202.5 billion won, 2,174.6 billion won, 27,109 persons and 20,080 persons respectively. The horse-riding sector and horse-related sector in the horse industry have higher economic ripple effects that imply more invigoration of both sectors needs to be promoted by the policy judgement for the horse industry to settle down effectively in Korean economy.