02129cas a2200241 a 4500 AALejournalIMF019348 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498315821 1018-5941 BD-DhAAL BD-DhAAL Lee, Dongyeol. Transmission of Domestic and External Shocks through Input-Output Network : Evidence from Korean Industries / Dongyeol Lee. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In the last two decades, manufacturing industries in Korea have become more concentrated, and interconnectedness across industries and to foreign countries has risen via vertical relationships and trade linkages. This paper investigates the transmission of economic shocks in such a highly concentrated and interconnected structure, focusing on the role of vertical and trade linkages and using the industry-level international input-output data. The results suggest that, first, the role of vertical and trade linkages in propagating growth shocks from both domestic sources and external sources is important. Second, the growth impact of a few key sources of economic shocks is relatively large. These findings highlight that economic shocks in a few key industries and/or major trading partners that are transmitted through vertical and trade linkages can lead to large swings in the overall economy. This paper contributes to the understanding of the potential interactions between the industrial structure and economic growth and stability. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2019/117 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/117/001.2019.issue-117-en.xml IMF e-Library