Sub-Provincial Regional Income Multipliers in the Ontario Economy: An Input-Output Approach

Abstract

Sub-provincial regional income multipliers in the Ontario economy: an inputoutput approach. This paper considers the feasibility of reducing regional income disparities by selective expansion of particular industrial groups. An inputoutput model is developed, and data for forty-eight industries and ten economic regions of Ontario are employed as a case study to deduce regional income multipliers. The empirical results of the study indicate that regional income differentials can be reduced relative to the 'central core' if industries for expansion are carefully chosen. But, in general, growth in any outlying region relative to the 'central core' is difficult to achieve. The model and the derivations of regional total and wage income multipliers represent a potentially fruitful approach to the analysis of regional economic policy.