On the Construction of Regional IO Tables

Abstract

Regional policy makers need regional economical data in order to define and backup their economical policy decisions. Regional input-output (IO) tables have proved to be useful in the policy making process, since the economic effects of policy decisions can be analysed in these models for the region as a whole. Unfortunately, the construction of regional IO tables on the basis of survey methods and other primary data collection methods is very costly and often incomplete. In this paper, we will discuss two techniques which can be applied to derive regional IO tables from national IO tables. In both methods, sectoral production specialization at the regional level is accounted for and affects the interindustrial structure of the region. The IO tables are constructed for 29 industrial sectors and 12 regions in the Netherlands. Policy makers, however, are not interested in the construction of regional IO tables themselves, but more in the economic indicators derived from them. Therefore, we present simple output- and employment-multipliers and employment-transformators derived from the IO tables and discuss some of the differences between them. A description of the economic performance of the Dutch regions is made by looking at the development of the economic indicators over a period of 12 years (1980-1992).Economics ;