The Co-Evolution of Korea’s Last Mile Distribution Sector over Three Decades: An Analysis of Input–Output Models and Networks

Ours study focuses on the Last mile Distribution (LD) sector, which has been significantly affected by digital transformation, to examine changes in the Distribution and Logistics (DL) industry from the perspective of the national industrial system. We employed the Input–Output (IO) framework and delineated the LD and other DL industries by reconfiguring the generic IO data, which do not specify these sectors. We also constructed industrial relational networks based on the IO analysis outcomes to examine their structural properties further. Our analysis found that the forward linkages of the LD sector have been more significant than its backward linkages, and that the forward linkages tend to strengthen with digital transformation. However, the backward linkages were not strengthened by digital transformation. Network analysis also confirmed the structural hole characteristics of the LD sector and its role as a powerful authority upon which major industries depend. In particular, the latter provides structural support for the strong forward linkage effect of the LD sector. Our findings provide insights into effective policies to digitalize the DL industries. For example, if the LD sector were deregulated in an innovative manner to support the co-evolution of other industries, the national supply chain would be further enhanced.