The motivation for this thesis is as follows. Agricultural production is closely related with agricultural input materials, agricultural processing and agricultural distribution industry and the industry associated with the agricultural production sector and the input-distribution is called agribusiness..
Agriculture is important since it creates high added value not only in the agricultural production sector but also in the agribusiness that involves upstream related industry (agricultural commodities) and downstream related industry (agricultural processing). Therefore, it is important to estimate the added value in the agribusiness as well as in the agricultural production sector when making agriculture related policy.
Since agriculture depends particularly on the conditions of production such as climate, there are limits in making policy using national data. Thus, it needs to estimate the added value created by the local agribusiness. However, such study has not been conducted yet.
While the added value in the agricultural production sector can be found in the gross regional domestic product and the input-output tables, the agriculture related added value in the agribusiness should be estimated based on the input-output tables since it cannot be directly found anywhere. The input-output tables is a comprehensive statistical table collecting all the transactions that occur between goods and services industries in a year and it can be used as useful data for studying the agribusiness.
This study aims to suggest methods to estimate the agriculture related added value created in the agricultural production sector and the up/downstream agribusiness of Chungcheongnam-do by using the transaction table at producer's price, the domestic transaction table, the wholesale-retail profit table and the freight charge table in the input-output tables, and further aims to estimate regional and industrial agriculture related added values created in the agricultural production sector and the agribusiness of Chungcheongnam-do by using the input-output tables of the year 2005.
In methods of the research, the agriculture related added value created by the upstream related industry can be estimated by applying the ratio of agricultural input among the entire production output to the added value of relevant industry in the transaction table at producer's price. However, since such agricultural input includes imports therein, the added value created by the domestic agriculture should be estimated by the ratio of the domestic product input into the agriculture among the entire production output.
The agriculture related added value created by the downstream related industry can be estimated by applying the ratio of the agricultural input among intermediate input to the added value of relevant business in the transaction table at producer's price. However, the added value created by the domestic agriculture should be estimated by the ratio of the domestic product input into the agriculture among intermediate input.
This study found that the proportion of the added value among the agricultural, forestry and fishery products is high in agricultural and livestock products and low in forestry and fishery products, which is shown to be particularly associated with the upstream related industry.
This thesis suggests the consideration of overall and holistic policy regarding public welfare facilities in healthcare, commission sale market places for fishery products, fishery processing factories, processing factories for medicines, cosmetics, feedstuff, and tobacco leaves and the innovative distribution system with regard to wholesale/retail that Chungnam lacks in. It is also proposed to make comprehensive and cohesive policy to enhance growth and competitiveness of agricultural, forestry and fishery industry.