Abstract
According to the current concerns about social welfare and environmental protection, integrated in a model assimilated to intrabusiness relations, our research started from the analysis of the initial model SAM, which will be transformed in order to develop the SAMI model under six research objectives. The need of improving SAM matrix started to connect it directly to the regional economic systems and continued to a new approach on Input-Output Analysis. Nowadays, SAM describes the intraregional connections between regional economic actors using the role of different income categories. Moreover, SAM can quantify different regional multipliers. All deficiencies previously identified in connection to SAM model have been reviewed and resolved within the proposed SAMI model by the authors of this paper. The purpose of this research is the launch of an absolutely new mathematical model (SAMI) and its practical testing at regional level. This model is able to systematize the links between the local and regional businesses, under the matrix (SAMI) flow, for all kinds of companies and to assist the regional decision, as well. Czamanski was not able to escape from the input-output prison’s approach. This is why he continued to use the linear interdependencies between the industries, economic sectors and economic actors. The income is able only to approximate the individuals and other economic actors’ welfare. If the increase in the average and aggregate income is doubled by an unfair distribution of income in two countries which have the same average income, the effects on welfare vary a lot. A relatively similar effect comes from the government policy differences in income distribution and redistribution.
Highlights
Regional accounting was developed and put into connection to the regional development at the beginning of the ‘70s [1]
The basic problem is that the model has to operate with a multitude of information coming from different sources, including data from prior years. This introduces the concept of flexible ‘cross entropy’ in the definition of Social Accounting Matrices (SAM), which allows the introduction of the errors in variables and inequality constraints [5]. Starting from these considerations, the authors of this paper have proposed to reposition the social accounting matrix in relation to the new market demands, using the objective evaluation of the previous critical proposals on this instrument and developing a new concept by incorporating a very visible component: intrabusiness transactions, which reflect globally the amplitude of the international economy
The present analysis proposes a study on the applicability of the regional social accounting matrix on intra-business relations for the top 52 companies in the urban growth area in Galati, Romania
Summary
Regional accounting (regional accounts) was developed and put into connection to the regional development at the beginning of the ‘70s [1]. The model was well correlated to the input-output analysis and brought special matrix SAM (social accounting matrix), as it was defined by P. Starting with this classic model, many pressures on the accounting system’s entropy have been identified, even that it was initially built in order to satisfy the needs of internal information users [3,4]. SAM evaluates inter-regional transfers at the household level by increasing the value of the skilled labour. SAMI, through its regional component, quantifies the impact of investments on households. Aspects regarding labor migration and social protection of European citizens through CBM community monitoring mechanisms are introduced in the SAMI matrix. Integrates innovative concepts on social responsibility and community monitoring to assess the impact of households in social accounting. The outputs of the SAM matrix are limited to the development of human capital in the traditional context of national markets engaged in international competitions.
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