Economic base and input-output multipliers a comparison for Vancouver, B. C.

Abstract

Employment multipliers for the metropolitan economy of Vancouver are derived from both economic base and input-out-put models of the region. The principal shortcomings of the location quotient approach in delineating the economic base of a region are reviewed, and empirical estimates are made of the understatement of exports resulting from this approach in light of survey data. The survey data and the author's judgment are then employed to yield a base employment multiplier of 1.99 for the region. Sectoral input-output employment multipliers are presented and conditions are derived under which an aggregated I-O multiplier is equal to the multiplier associated with the economic base model.