Integration of input-output and programming in land resource supply analysis

Abstract

This paper represents an attempt to outline a method for studying the economic significance of land resources and their use in an interdependent framework. Briefly, a multiregional, spatial-commodity model in the input-output spirit was constructed. Modifications of conventional methods of analysis were: multiple primary resources, substitution between production processes or inputs on the production side and substitution on the demand side between identical commodities. Assuming production functions to be homogeneous of degree one, the choice problem of what, where, how, and how much to produce may be solved by linear programming methods. In general, solutions may be found for many rectangular structural matrices. The direction and magnitude (with an error) of the effects of changes in output, employment, income or demand may be traced fully on land utilization in a consistent and rigorous fashion throughout the whole economy. Also, changes in land use and the concomitant effects on production, employment, income and other economic variables (regional trade, supply of inputs, etc.) may be studied formally within the model. The use of this method in the analysis of economic development problems in not so developed countries with the characteristic situation of inadequate production and an abundant labor supply is discussed briefly.