Impact of the connected & autonomous vehicle industry on the Korean national economy using input-output analysis

Abstract

This study estimates Korea's connected and autonomous vehicle (CAV) industry's economic impact using a multiple-stage input-output (I-O) analysis. To overcome the rough and arbitrary industry matching process of traditional I-O analysis, we designed a modified I-O analysis that can estimate the Korean CAV industry's economic impact with a sophisticated and reasonable range of values by introducing a new, elaborate mapping stage. We estimated the economic impacts of the CAV industry in various ways through the evolution of CAV technology (autonomous vehicle and automated vehicle). The results show that full adoption and commercialization of CAV will transform the current automotive industry, which tends to be a final demand manufacturing industry, into an intermediate-demand manufacturing industry. These results empirically support previous studies demonstrating that CAV can be combined with mobility as a service (MaaS).