Regional Input-Output Analysis

Input-output analysis is a method by which the flow of production can be traced among the various sectors of the economy, through to final demand or export. The most fundamental problem of input-output analysis is to calculate the necessary output levels of each industry required to achieve a final output. What is the effect upon the local economy from the introduction of a new firm? What are the economic linkages between regions and how is equilibrium between regions achieved? What if the supply of an input in one region becomes restricted through some bottleneck? Input-output analysis can be used to address these issues. This book will prove to be a valuable resource to students and practitioners of the planning sciences, including urban and regional economics, regional science, engineering, public administration, business management science, city and regional planning, as well as scientists in economic geography. SCIENTIFIC GEOGRAPHY SERIES, Grant Ian Thrall, editor.https://researchrepository.wvu.edu/rri-web-book/1009/thumbnail.jp

Spatial convergence in China: 1952 - 99

The purpose of this paper is to examine the convergence process in China by taking into account the spatial interaction between factors. The paper shows that there has been a dramatic increase in the spatial dependence of China’s per capita GDP in the last 20 years. The consequence of space plays an important role, which is reflected in the influence of a neighbour’s condition on the mobility of a province’s income distribution from one category to another. The dynamics of the process showed evidence that China’s distribution has gone from one of convergence to stratification, and from stratification to polarization. – China ; income distribution ; spatial effects ; spatial econometric

Water Price and Water Sectoral Reallocation in Andalusia. A Computable General Equilibrium Approach

The objective of this paper is to analyze the effects that an increase in the price of water delivered to the agriculture sector to promote the conservation of this resource would have on the efficiency of the consumption and the possible reallocation of water to the remaining productive sectors. The analysis is motivated by the fact that agriculture consumes a disproportionately large amount of water at very low prices – subsidized. The methodology that is used to explore the implications on the economy is a computable general equilibrium model (CGE), previously designed for an analysis of the direct taxes of the Andalusian economy (Cardenete and Sancho, 2003), but now enhanced and extended to include emissions of pollutants and the introduction of environmental taxes (André, Cardenete and Velázquez, 2005). This model has been further modified to introduce the variations in the water price that the authors will try to analyze by means of a tariff applied on the production structure. The main conclusion drawn indicates that, although the tax policy applied does not correspond to a significant water saving in the above-mentioned sector, a reallocation of this resource is achieved which seems to generate a more efficient and more rational behavior from a production point of view

Structural Interdependence among Colombian Departments

This paper advances on the analysis of the structural interdependence among Colombian departments. The results show that Bogotá has a large influence in the other regional economies through its purchasing power. Additionally, it can be observed a centerperiphery pattern in the spatial concentration of the effects of the hypothetical extraction of any territory. From a policy point of view, the main findings reaffirm the role played by Bogotá in the polarization process observed in the regional economies in Colombia in the last years. Any policy action oriented to reduce these regional disparities should take into account that, given the structural interdependence among Colombian departments, new investment in the lagged regions would flow through Bogotá and the major regional economies.Input-output; extraction method; Colombia Classification JEL: R12; R15.

Public Capital and Regional Economic Growth: a SVAR Approach for the Spanish Regions

Recently, a significant share of the empirical analysis on the impact of public capital on regional growth has used multivariate time-series frameworks based on vector autoregressive (VAR) models. Nevertheless, not as much attention has been dedicated to the analysis of the long-run determinants of regional growth processes using multi-region panel data and applying panel integration and co-integration techniques. This paper estimates the dynamic domestic effects of public infrastructure using a structural vector autoregressive (S-VAR) methodology for the Spanish regions. From a methodological point of view, the paper contains several features that can be viewed as a contribution to the existing empirical literature. First, the important issues of the stationarity of the data and the existence and estimation of cointegrating relationships in the long-run are addressed in the context of the analysis of panel data. Secondly, the long-run cointegrating production function is embedded within structural vector error correction (S-VEC) shortrun models to produce consistent estimates of impulse responses, contrary to many researchers who have estimated unrestricted VAR models in levels or VAR models in first differences. The estimates reveal new results with respect to the previous empirical evidence

Trade and interdependence in the economic growth process: a multiplier analysis for Latin America

This paper illustrates alternative methodological approaches to the issue of trade and interdependence in the economic growth process with a focus on the countries of Latin America, drawing inspiration from earlier contributions by Machlup, Goodwin and Miyazawa. The world economy is divided into two main blocks ofcountries (Latin America and a selection of developed economies) with the rest of the world forming an aggregated third block. A time series of trade matrices for the period 1978-1991 has been constructed to explore the degree to which changes in one country spillover to the rest ofthe world and the degree to which the changes are symmetric or asymmetric. The approaches reveal that important insights into trade structure can be obtained, insights that will prove of value in the rapidly changing trade regimes of the current and next decades

The locational implications of management and production fragmentation

O objetivo central deste trabalho é mostrar a importância que a organização interna das firmas pode ter na decisão de localização das empresas e, consequentemente, no processo de fragmentação espacial da produção. Na simulação proposta, na medida em que os custos de comunicação diminuem ou as estruturas gerenciais se tornam mais flexíveis, as fábricas tendem a se localizar nas cidades médias, enquanto as administrações centrais das firmas se aglomeram nas áreas metropolitanas. A introdução da organização interna das firmas no modelo, um aspecto não levado em conta pela abordagem proposta por Jones e Kierzkowski, permite formalizar evidências empíricas apontadas pela literatura recente.The main purpose of the work is to provide a theoretical link between the location decision and the internal organization of firms. In the simulation presented, (1) communication costs within the firm and (2) managerial structures affect both the production fragmentation process and the economic specialization of cities. More specifically, as either communication costs diminish or managerial structures become more flexible, manufacturing plants tend to move from the big city to medium cities, whereas headquarters and business services tend to agglomerate in the metropolitan area. The introduction of the internal organization of firms into the model, an aspect that is not modeled by Jones-Kierzkowski\u27s approach, allows this article to formalize some empirical evidences pointed out by the literature

Economic structural change over time: Brazil and the United States compared

Usando as matrizes de insumo-produto para as economias do Brasil e dos Estados Unidos, este estudo comparativo tem como objetivo analisar como a estrutura produtiva de dois grandes países, com níveis diferentes de desenvolvimento, mudou através do tempo (1958-77 para os Estados Unidos e 1959-80 para o Brasil). A mudança na estrutura produtiva e decomposta em três componentes iniciais (demanda final, tecnologia, e sua interação sinergética), após o que estes componentes são divididos em mudanças que são iniciadas dentro e fora do setor. A partir destas analises e possível identificar os padrões de mudanças estruturais nas duas economias. Os resultados indicam um grande grau de semelhança nos padrões do processo de crescimento de ambos os países, com diferenças mais significantes entre setores do que entre países. A análise capaz de capturar diferenças importantes na origem das mudanças da demanda, isto e mudanças internas versus mudanças externas ao setor.Using input-output tables for the economies of Brazil and the United States, this comparative study focuses on changes in the economic structure of two large countries with different levels of development over time (1958-77 for the United States and 1959-80 for Brazil). The change in the economic structure is decomposed into three initial components (final demand, technology, and their synergistic interaction) and thereafter these components are further divided into change initiated within the sector and outside the sector. From this analysis it is possible to identify patterns of structural change in the two economies. The results indicate a rather remarkable degree of commonality in the patterns of growth processes in both countries, with more significant differences between sectors than between countries. The analysis confirmed earlier findings about the role of demand changes but was able to capture important differences in internal-to-sector versus external-to-sector sources of demand change