Abstract
In this study, a village input–output table (VIOT) is built from household survey data from a rural village in a developing country to capture the interdependency between households through their transactions in 2016. This VIOT is a simple, but useful tool for understanding the economic transactions among villagers. The main findings of this work are that lower- and middle-income households mainly depend on commodities supplied by non-poor counterparts, especially by four higher-income households, who are not only producers, but also traders of commodities in the village and play key roles in the village economy, and that the IO interdependency among non-poor households is stronger than that among poor households. Additionally, this paper describes a first trial application of the VIOT method to develop economic policies with goals such as poverty reduction and trade expansion in the village.
Highlights
The strong human relations through trade, the exchange of goods and services between households in disadvantaged areas lead to an increasing role of economic interactions and potentially wider economic development and growth
The main purpose of this study is to make a village input–output table (VIOT) from household survey data to examine the interdependency among households through transactions in an isolated and disadvantaged village in a developing country
The main results of VIOT analysis by multipliers are as follows: 5.1 Total output multiplier For any one household or a sector, a high level of intermediate inputs, e.g., those purchased from other households in the village, suggests strong linkages within economy and creates significant indirect effects in the output of supplying sectors
Summary
The strong human relations through trade, the exchange of goods and services between households in disadvantaged areas lead to an increasing role of economic interactions and potentially wider economic development and growth. Hongsakhone et al Economic Structures (2021) 10:1 a micro-econometric methodology This VIOT is an appropriate approach and is applicable for disadvantaged areas where it is often difficult to obtain socioeconomic data, such as developing countries, to fully analyze the reciprocity of rural households through their economic transactions. Households with very frequent trade transactions with others will gain greater incomes to reduce poverty, and households exhibiting less trade or no trade transactions with others will have low incomes, leading to poverty This VIOT method can provide basic information about this issue and can be used to form economic policies for goals, such as poverty reduction by providing information on households playing a key role in the village. In such areas where the same household or person has characteristics of both a producer and a consumer, the VIOT model is an advantageous tool for analysis
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