Abstract

Interregional economic-base models are typically presented in the abstract as a prelude to more complex interregional input-output models. The interregional economic-base model presented here reverses the process, deriving its data from a larger interregional input-output model of Canada. It is sufficiently compact to be a useful classroom tool.

Highlights

  • Interregional economic-base models are typically presented in the abstract as a prelude to more complex interregional input-output models

  • In the 1970s and especially in the 1980s, computer technology developed so rapidly that simple economic-base models were quickly replaced by input-output models

  • A search of key literature sources reveals no empirical developments of interregional economic-base models, while interregional inputoutput models have become commonplace

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Summary

INTRODUCTION

In the 1970s and especially in the 1980s, computer technology developed so rapidly that simple economic-base models were quickly replaced by input-output models. The economic-base family remains a highly effective approach to understanding models that are more complex. The model reported here is a simple byproduct of assembling a 13-province/territory, 26industry input-output model of Canada in 2004.1 The process involves summing interindustry transactions in each region. We have included the household sector as endogenous to the system The regions in this model are made up of Canada’s 10 provinces and 3 territories. Provinces Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick Quebec Ontario Manitoba, Saskatchewan, Alberta British Columbia Yukon, Nunavut, and Northwest Territories. A national economic-base model would not tell us that the Atlantic Provinces and the Territories have characteristics different from the rest of the regions. We have appended statistics on the 13-province/territory model and will make the complete model available upon request

BUILDING THE MODEL
COMPARISONS OF MULTIPLIER CONCEPTS
Findings
CONCLUSION
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