Interregional Input-output Table Research Articles

Spatial and sectoral characteristics of China’s international and interregional virtual water flows – based on multi-regional input–output model

ABSTRACTThis paper provides a systematic analysis of spatial and sectoral characteristics and changes in virtual water flows associated with China’s interregional and international trade based on the China interregional input–output tables of 2002 and 2007. The results show significant improvement in water use efficiency between 2002 and 2007. However, the general spatial patterns and sectoral components of virtual water flows have more or less remained during the period. Almost all Chinese provinces are net exporters of virtual water in international trade. In interregional trade, the dominant direction of virtual water flow is from peripheral provinces to eastern coastal provinces. The agricultural sector plays an important role in shaping this direction and has significant impacts on water uses in exporting provinces, some of which are water scarce. The results of this study clarify some confusions concerning mismatches between regional water endowments and virtual water trade within China and with other countries.

Foreign exports, net interregional spillovers and Chinese regional supply chains

AbstractThis study develops a method to decompose total national indirect value added effects (induced by final demand) into intraregional effects and interregional spillovers. The decomposition is applied to China's 2002 and 2007 interregional input–output tables with foreign‐owned processing exports separated from normal exports. First, we find that interregional spillovers account for one quarter to one half of the total national indirect value added multipliers in 2007, with the largest spillovers occurring for the coastal regions. This finding is important when explaining regional value added generation and thus has real implications for regional policy programmes. Second, we develop a new measure, namely, ‘net interregional value added spillovers’ to position China's individual regions in the global production chains. This measure shows that upstream regions in the Centre, Northwest and Southwest of China are net recipients of interregional value added spillovers generated by foreign exports in coastal regions. Over time, this observation becomes more pronounced.

Interregional transfer of polluting industries: a consumption responsibility perspective

The economy and the environment are like two sides of a coin: it seems as if we cannot get both simultaneously, as the transfer of polluting industries shows such a paradox between the two sides that it promotes economic development while it may cause pollution transfer and diffusion. This paper tries to evaluate some basic issues facing interregional transfer of polluting industries in China: how to define polluting industries adequately, what benefits accrue from the transfer status and whether there are some rules governing this situation. Initially, a pollution intensity index is calculated which considers industrial waste emissions of solids, liquids, and gases to avoid the difficulty in confirming overall masses of each kind of pollution when we try to aggregate different pollution indices, we then measure the transfer of these polluting industries among the eight regions of China with the help of an input–output model and interregional input–output tables to analyse the polluting industrial transfer trends from 1997 to 2007 in China. We find that there are eight industrial sectors that can be defined as polluting industries according to the interregional input–output table with seventeen sectors, including: mining and dressing, food production and tobacco processing, garments and textile, etc. Generally, polluting industries mainly transfer from the eastern coastal areas to the western and northern inland areas that render the northwest and northeast the major polluting industries recipients. We also find that some polluting industries transfer from eastern regions to both northwest and southwest directly, instead of via midland regions in China. Anti-gradient transfer arises in some polluting industries which transfer from the midlands and southwest at a lower industrial gradient to southern coastal areas that operate under a higher industrial gradient.

Exploration of the Intersectoral Relations Based on Input-Output Tables in the Inland River Basin of China

The conflict among natural resources, environment and economic development is one of the major problems to be solved in the current world. Sustainable development is a powerful tool on the way toward seeking for harmonious development. Due to a lack of resources and fragility in ecosystems, the Inland River Basin of China is facing a serious problem that needs to be solved. In this paper, northwest China is chosen as the study area. Based on the interregional input-output table of China for the years 2002 and 2007 and the provincial input-output table of 2007, the I-O table analysis method was adopted to calculate the influence coefficient and response coefficient of the five provinces in northwest China. Through the analysis of the results, the intersectoral relation has been investigated, which could lend some credence for seeking effective ways for sustainable development in western China. The research findings indicate that the tertiary industry and construction sector are capable of greatly driving the national economic development in northwest China and, thus, should be developed preferentially.

THE COMPILATION OF CHINA'S INTERREGIONAL INPUT–OUTPUT MODEL 2002

The increasing economic interaction among various regions in China makes the construction of an interregional input–output table relevant for economic studies. This paper elaborates the model compilation procedure of the China Interregional Input–output model 2002. The key features of the model compilation include: (1) using representative commodities to estimate the interregional commodity flows of the primary industries; (2) adopting functions to estimate the decreasing interregional transportation of manufacturing sectors in relation to distance and (3) selecting appropriate indicators to estimate the interregional commodity flows of non-material sectors. This study is an initial attempt in interregional input–output modelling and might be helpful for economic studies at the levels of micro-regions.

Inter-Island Economic Linkages and Connections in Indonesia

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<b>兵庫県内7地域産業連関表の推計による地域経済圏の経済効果分析</b>

<b>兵庫県内7地域産業連関表の推計による地域経済圏の経済効果分析</b>

Estimation of Interregional Trade Coefficients and Multipliers in the Context of An Interregional Model

1. Introduction In recent years there has been an increased interest in input-output analysis and its multiple applications to regional and interregional analysis. The purpose of this study is to provide a cursory description of the results of estimating trade coefficients and interregional multipliers by means of a statistical implementation of the Chenery--Moses model for Greece. In order to carry out the study in this field, the estimation of interregional trade coefficients by commodities is the fundamental work and is an important part for the compilation of interregional input-output table (Thalassinos 2007). But as most countries in the world, even developed countries, Greece does not have enough statistical data to build such matrix. The author has constructed by own forces an interregional model for the year 2010 of the Greek economy, which fill the gap of official regional statistics. The evaluation of the impacts of an exogenous change on a regional system would require a model that incorporates the industrial interrelations of a region with another region. The impacts were simulated considering three producing regions for the Greek economy, North Greece, Center Greece and Aegean Islands and Crete. The constructed interregional input-output matrix was used considering a set of three regions and ten aggregated sectors. From this matrix interregional-interdependence matrix was computing to show the direct and indirect relationships between producing sectors and regions. Finally, interregional multipliers were computed for each sector and region measured the impact on regions and on the economy as a whole. The above procedure revealed the major producing sector in the nations. In this regard the attempt of the present study to introduce regional input-output tables and regional technical coefficients would be beneficial to interregional model. The rest of the paper is organized as follows: In the second section a short overview of the literature review was provided. In section three we will describe the research methodology of interregional model. Section four is devoted to an empirical illustration. We apply the estimation procedures and data sources in the empirical implementation of the model. A concluding section finalized the paper. 2. Literature Review Isard (1951) was the first writer who developed the interregional input-output model with an analytical interregional trade coefficient matrix. This model requires an extent size of basic data. As a result one of the most powerful model was put forward by Chenery (1953) and then Moses (1955) independently and it is called Chenery-Moses model. The relative advantage of this model due to the fact that the technical input structure of production in each region and interregional trade structure of various products are separately stated. Therefore, the primary data needed to implement such a model, are usually less than the Isard model. Wassily Leontief in collaboration with Alan Strout evaluated a gravity trade model for different commodity shipments. New interregional input-output models have been constructed, Kilkenny and Rose (1995) and Hewings (1995). 3. The Model The Greek economy is divided into three regions: North, Middle and Aegean Islands and Crete. The model contains ten intermediate sectors after aggregation. The solution of the model can be obtained by using two sets of structural constants. The first set describes the structure of production or input requirements in each region. [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] A second category of structural constants is a set of trade coefficients. The trade coefficients may also be presented as a diagonal block matrix. From the above two sets of structural constants a new matrix is obtained named regional input-output coefficient matrix and is given by the matrix A. [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] In the case of Greece with three regions I, II, III the terms [A. …

Medical Tourism Industry in Kangwon Province and Its Economic Impacts on the Region

This paper has two purposes. The first is to suggest the new and simple method to derive a regional input-output model from national input-output table published by the Bank of Korea. The interregional input-output table has not been devised in spite of its potential use while the national table has been made every five years with the revised version during each five years. Second, this paper aims to derive Kangwon interregional input-output model from the national model using the regional supply proportional of industry and to analyze the effect of medical tourism industry on the regional economy of Kangwon Province. The paper measures, in particular, the effect of medical tourism industry on the financial self-sufficiency of Kangwon Province using the estimated output elasticity of tax revenue with the autoregressive distributed lag scheme ADL(1,1) in which the dependent variable ad the single explanatory variable are each lagged once.

The Meat Sectors and the Brazilian Macro Regions Economies: An Interregional Input-Output Approach

The Brazilian meat production in 1999 is estimated at 12.8 million tons, and the main productive chains of this sector are: a) the beef chain (6.7 million tons); b) the poultry chain (5.0 million tons); and the pork chain (1.7 million tons). Brazil is the world second largest beef producer (13.6% of the world’s total volume), the third largest poultry producer (12.5% of the world’s total volume), and the eighth largest pork producer (2.0% of the world’s total volume). Brazil is also the world third largest beef exporter (9.2% of the word’s total volume), second largest poultry exporter (12.7% of the world’s total volume), and thirteenth largest pork exporter (1.3% of the world’s total volume). Due to the importance of the meat sector for the Brazilian economy it is important to know how the product transference of the animal-raising and slaughter sectors and the meat processing industries take place among the Brazilian regions and how this can impact the national economy. This paper evaluates both the regional and the national economic significance of meat industry, using a five regions interregional input-output table.

The Role of Brazilian Regions in the Global Value Chain

In the last couple of decades, production processes have been characterized by their fragmentation, which crosses the borders of countries more and more. This coincides with the common viewpoint that products and services are now made in global value chains and that ‘trade in value added’ might be a better approach for the measurement for international trade. The same applies at the regional level, and perhaps even to a larger extent. The present paper analyzes the role of Brazilian states in the global value chain. Since fragmentation of production processes leads to an interdependent structure which has to be accounted for, the input-output methodology seems especially suitable. Therefore, in its empirical application, the paper combines a world input-output table covering 40 countries (and the rest of the world as a 41st country) with an inter-regional input-output table covering each of the Brazilian states, for the year 2008. Our results show that the average country trades approximately twice as much in value added (as a share of country’s value added) than Brazil: the participation of Brazil in the global value chain is somewhat limited. We notice, however, important differences among states, both in terms of trade volume and of relevant industries that account for the generation of value added. The paper also further analyzes the Brazilian value chain and the trade relations of Brazilian states with China and USA, exploring the regional heterogeneities involving such relations.

COMPILATION AND APPLICATIONS OF IDE-JETRO'S INTERNATIONAL INPUT–OUTPUT TABLES

International input–output (IO) tables are among the most useful tools for economic analysis. Since these tables provide detailed information about international production networks, they have recently attracted considerable attention in research on spatial economics, global value chains, and issues relating to trade in value added. The Institute of Developing Economies at the Japan External Trade Organization (IDE-JETRO) has more than 40 years of experience in the construction and analysis of international IO tables. This paper explains the development of IDE-JETRO's multi-regional IO projects including the construction of the Asian International Input–Output table and the Transnational Interregional Input–Output table between China and Japan. To help users understand the features of the tables, this paper also gives examples of their application.

<b>地域間産業連関表を用いた就業構造の変化とその要因分解 </b>

サブプライムローン問題に端を発した世界的な金融危機の影響を受け，我が国の雇用情勢も急激に悪化した．平成24年度末においても地域によって差異はあるものの，依然厳しい状況が続いている．本論文において，平成7年，12年及び17年地域間産業連関表と整合した地域雇用表を推計した．その際，従業者数に関する一次統計に加え，賃金額に関する一次統計も用いている．また，推計した地域 雇用表を用いて就業構造の変化とその要因分解を行った．その結果，地域ごとに異なる就業構造等が確認された．

Economic Ripple Effects of Bioethanol Production in ASEAN Countries: Application of Inter-regional Input-Output Analysis

Bioethanol has great potential to reduce greenhouse gas emissions, improve energy security, and help revitalize agriculture. Accordingly, an E10 policy that substitutes bioethanol for 10% of all gasoline consumed will be globally popular. The present study aims to analyze the economic effects of bioethanol production for an E10 policy in nine ASEAN countries (except Brunei), with efforts to minimize CO2 emissions. We consider two self-sufficient bioethanol production policies, i.e. self-sufficiency within each country and that within the ASEAN region under the scheme of a production quota. The optimization model, based on Takahashi et al. 20 , and the inter-regional InputOutput Table, as estimated from the GTAP-7 (Global Trade Analysis Project, ver. 7) database, are used for consistent policy evaluation. The results demonstrated initially that the E10 policy under the scheme of a regional production quota elicited about 20% more environmental and economic effects than self-sufficient production within each country. Second, Singapore, Japan, China and the USA increased their production through bioethanol plant construction and annual production, even though this study assumed they did not increase bioethanol production. Approximately half the total induced production emerged in these countries. Third, induced production in agriculture accounted for half the total induced production. Based on these merits, several policy implications relating to the E10 policy with policy coordination are discussed.

산업연관분석을 이용한 수산업의 경제적 파급효과 추이 분석

Today, the Korean fisheries is undergoing significant hardships, both domestically and internationally. While declining amount of catch, ascending international oil prices and others pose a compelling challenge to the fishing sector, the ever strengthening influence of international institutions related to fisheries and international trade organizations also compel to bring about myriad of changes in the realm of fishery products. Against the backdrop, this study attempted to examine the fisheries catch, aquaculture, service, processing fields in terms of its rippling effect and of how the industry has been changed by analyzing the past and present through an input-output analysis. As for research methods, 168 items of the input-output tables in 2000, 2005, 2009, and 2010 were integrated to form and classify 32 sectors (28 basic sectors + catch, aquaculture, fishery service, processed fishery products) so as to generate production inducement coefficient, sensitivity coefficient, and impact coefficient. The analysis results revealed that : though the linkage effect of fishery industry was not very sizable, the impact coefficient of the processed fishery products was high; the consumption and investment coefficient sector among production inducement coefficient was on an upturn trend ; the export coefficient was tended to decline. In the future research, it is necessary to carry out a study based on the integration of detailed classification (404 sector) and a study and analysis of fishery industry by different regions through the inter-regional input-output tables. The fishery industry is one of the crucial industries in Korea. The fishery industry is not only important in its own right but also significant as it exerts influence over other industries. Therefore, it is required that there should be more investment and supports for the development of the fishery industry, and pay efforts to ensure that the investment and development could lead to mutual growth for both the fishery and other various industries.

Regional Effects of Trade Liberalization in Japan: A CGE Analysis Based on an Interregional Input-Output Table

Since the 1990s, computable general equilibrium (CGE) analysis has been widely used as a tool for evaluating the quantitative effects of trade policy, and many CGE studies have concerned trade liberalization in Japan. However, no study has attempted to examine the regional effects of liberalization; that is, how trade liberalization affects individual Japanese regions. Given that trade liberalization is likely to generate dissimilar effects in different regions, and because concern with regional disparities has grown, it is of great importance to analyze the regional effects of trade liberalization. Using a bottom-up regional CGE model, this paper quantitatively evaluates the regional effects of trade liberalization in Japan. We use a static single-country model with 23 sectors and 8 domestic regions and the Interregional Input.Output Table for Japan 2000 as the benchmark data. The main results are as follows. First, trade liberalization increases welfare and GDP in Japan as a whole. This finding is consistent with previous studies in this area. Second, the magnitude of the GDP and welfare effects differs significantly across regions. In particular, high-income regions like Kanto, Chubu and Kinki have large gains while low-income regions like Hokkaido, Tohoku and Kyushu-Okinawa have small (or negative) gains. That is, trade liberalization exacerbates existing regional disparities. These results indicate that if policy makers have an interest in regional disparity, they should implement some form of redistributive policy in conjunction with trade liberalization.

Inter-Regional Ripple Effects of Investment and Export in Vietnam :

Vietnam is deepening economic relations with East Asian countries because of economic growth after adoption of the economic reform policy called Doimoi. Economic analysis of Vietnam needs to consider such economic linkages, but there are few empirical studies on Vietnamese inter-regional relations. This paper aims to analyze the industrial and economic inter-linkages between Vietnam and other East Asian countries. We estimated an expanded version of the Asian Inter-regional Input-Output (E-AIRIO) table and measured induced production caused by investment and export in view of repercussion effects that raise Vietnamese production through inter-regional trade by reflexive ways in other countries.The simulation results demonstrate that, first, the influence of Vietnamese investment and export is not large when compared with China, but is not negligible. Second, the repercussion effects of investment and export in Vietnam were respectively 10% and 20% of the total induced production. Third, Thailand also received similar effects from East Asian countries, but Thai repercussion effects via only Vietnam were less than 1% of the induced production. Fourth, among other East Asian countries, Japan experienced the greatest amount of ripple effects from Vietnam.From the above results, we conclude that the economic development policy should consider repercussion effects, and policy coordination among East Asian countries is important for steady growth. To build such policy coordination, inter-regional I/O tables like E-AIRIO can provide useful information.JEL Classification: Q27, Q42, R15

Roles of Regional Differences and Linkages on Chinese Regional Policy Effect in CGE Analysis

Abstract This article first studied the nature of multiregional CGE models and reviewed relevant studies in such models. The article also constructed a static eight-region CGE model using an interregional input-output table for China. The model reflected the sizes of economies and differences in industrial structures across regions. More importantly, based on related empirical research, the model characterized the main economic relations across regions, such as interregional commodity flows, labor flows, and capital flows. Finally, some simulations were carried out to reveal the important effect that comes from the regional differences and linkages. The results shows the specifications of the regional differences and key linkages have significant influences on policy analysis.

Modeling the Regional Economic Loss of Natural Disasters: The Search for Economic Hotspots

This paper examines the economic impacts of natural disasters using the originally estimated finer geographical scale production datasets and the redefined interregional input–output table. For more effective estimates of direct losses of the disasters, the precise geographical information of industrial distribution is required, because most economic data are published according to political boundaries that may be too aggregated to be the practical information for disaster preventions and retrofit policies. The direct losses are captured by the output data at the district level (500-meter square) by sector and the population density. The map of economic hotspots is obtained after estimating the economic importance of each district. The numerical examples clearly show that the advantages of finer geographical scale datasets and the total economic losses are not proportional to the distributions of population and industrial activities. In other words, the disaster prevention and retrofit policies have to consider the higher-order effects to reduce the total economic loss.

Transações inter-regionais e intersetoriais entre as macro-regiões brasileiras em 1985 e 1995

The aim of this article is to study the evolution of the productive structure of the five Brazilian macro regions in the years 1985 and 1995 by means an interregional input-output tables estimated from the national tables published by IBGE. The results show the key-sectors in the five studied regions, that the Southeast region is very independent from the other Brazilian regions and that the South and Northeast regions alternated in the second position in terms of the dynamics of their productive structures, followed by the Central-West and North regions. It was possible to detect relative dynamics in the productive structure of the Northeast region, as well as the existence of greater integration between that and North region in 1995, which may be indicating the existence of a possible development pole between those regions. Finally, greater independence was verified among the Brazilians regions, being relatively plausible to point at the growth of the integration of the national productive structure with the exterior in 1995 compared to 1985.