Regional Input-output Analysis Research Articles

The importance of the electric sector: a national and regional input-output analysis

This paper analyzes the structural evolution of the electric sector in Brazil between 2010 and 2019 using the Input-Output framework. National results show that the industry has above average production multipliers that follow Brazilian economic performance and is considered a key sector – especially due to its supply –, having linkages with all other activities that exceed the economy’s average. Given its importance, the paper analyzes the regional gains and spillovers from larger investments in the sector, revealing that the Northeast is the region with the most significant impact on production, taxes, employment, and salaries.

부동산 산업의 경제적 파급효과와 충격반응 분석

This study examines the effect of the real estate industry on other industries as input and output resources. We define the real estate industry based on the two- and three-digit industry classification system as the recent real estate industry expands into other interdisciplinary business sectors. We also aggregate the sub-sector of the real estate-related industry into the broad real estate-related industry. We analyze input-out tables to find the spillover effect and value chain to other related industries by utilizing a total of 17 annual industry input-output tables from the Bank of Korea. This study also extends the spillover effect of the real estate industry along with a fluctuation of macroeconomic conditions. We find that the magnitude of the economic effect of the real estate industry on other industries is large when we classify the real estate industry into the two-digit industry classification system except for the analysis of the additive value impact. We also examine the impulse response analysis (IRA) by utilizing vector autoregression analysis. IRA indicates that macroeconomic variables affect the real estate industry and drive the same directional spillover effect on other industries. Our analysis segregates the national input-output analysis into the regional input-output analysis to identify the economic effect of real estate market fluctuation of the Seoul Metropolitan Area on other regions.

The carbon footprint of regional tourism trips: insights from environmentally extended regional input output analysis

Tourism is an important and almost certainly increasing driver of anthropogenic climate change. However, intelligence on the total greenhouse gas emissions related to tourism trips – including travel to and from the destination – is limited, especially at sub-national destination scale. This paper uses an environmentally extended input-output approach to estimate the total greenhouse gas emissions consequent on inbound and domestic tourism trips in Wales, a region of the UK. We use the UN World Tourism Organisation (TSA) concept of visitors and trips to estimate the overall carbon footprint of tourism at around 3.4 megatons in 2019, 8.7% of total territorial emissions. We further compare these results with estimates for 2007 which suggests that there has been a modest reduction of under 2% per annum since 2007, but with significant data issues affecting comparability. Apparently slow progress in decarbonisation, including an increase in intercontinental visits to Wales over the period, suggest tourism here has not yet embarked upon a climate-responsible transformation.

프로스포츠 산업의 지역 경제 파급효과 – 프로야구 분석

Purpose: The purpose of this study is to analyze the regional economic impact of the professional baseball industry by examining the expenditures of professional baseball clubs and spectators.BR Method: To achieve this purpose, a regional input-output analysis was used in this study.BR Results: The results of the analysis showed that the regional production inducement effect of the professional baseball industry was KRW 1059.1 billion, the value-added inducement effect was KRW 491.9 billion, and the employment inducement effect was 10,987 person. The LGT wins had the highest production inducement effect within the region (KRW 131.1 billion). Next, SK Wyverns (KRW 126 billion), Doosan Bears (KRW 123.2 billion), and Samsung Lions (KRW 112.7 billion). The Kia Tigers (1,364 person), SK Wyverns (1,286 person), and Samsung Lions (1,233 person) had significant employment effects.BR Conclusion: In summary, the findings of this study confirm that the Korean professional baseball industry has a positive impact on the local economy.

Rural Development Potential in the Bioeconomy in Developed Countries: The Case of Biogas Production in Denmark

Policy makers have expressed much optimism about the potentials of the bioeconomy in terms of economic growth and job creation in rural areas in developed countries. However, only few studies have attempted to quantify the rural employment effects of bioeconomic projects. This paper uses the biogas production in Denmark as a case within the bioeconomy. It performs a regional input-output analysis to estimate the number of jobs created in rural areas by an increase in the biogas production. The input-output analysis estimates the direct job creation at the biogas plants, the indirect job creation at firms that supply inputs to the plants, and the induced job creation that is generated locally through increased income spending. The results show that an increase in the biogas production by 10% of the available farm manure will give a permanent increase of 342 jobs and an extra annual income of approximately 21 million euros. Consequently, if all available biomass from farm manure were to be used in biogas production, it would result in 3420 jobs. The calculated employment effect is quite sizable but still somewhat modest compared to the significant employment declines in rural Denmark in recent years. Meanwhile, biogas is only one element in the bioeconomy.

Environmental inequity hidden in skewed water pollutant – value flows via interregional trade in China

Extensive economic growth brings about tremendous water pollutant discharge, which in turn poses great threats to ecosystem and human health, underscoring the vital importance of coordination between economic development and environment. Meanwhile, with the increasing frequency of commodity flows in China, pollutant leakage and the uneven distribution of economic benefits further enlarge the preexisting economic disparities among regions and trigger regional environmental inequities. Therefore, to understand the status quo of the inequities in China, we calculated the regional environmental inequity index (EI) of thirty provinces in terms of water pollution and value added, and further investigated the flow and important paths across provinces and sectors of water pollution and value added by combining multi–regional input–output analysis and structural path analysis. The results showed that northeastern and part of central and northwestern regions suffered from the most serious environmental inequity, while the eastern and southern coastal provinces benefited the most from interregional trade in 2015. Such inequities were driven by the inconsistent net flows of water pollutants and value added, wherein there was a net transfer of water pollutants from developed regions to less-developed provinces in northeastern and central China; however, value added was generally transferred among developed provinces and from inland less-developed to eastern coastal developed provinces. Thus, economic and environmental benefits were both more common in developed areas. This skewed relationship can be explained by the uneven spatial distribution of key sectors (i.e., agriculture, food and tobacco, construction and hotel and restaurant), that are generally in high water pollution or strongly demand for water polluted intensive products. Thereinto, the primary flowing path is that high water-polluting but low value-added agricultural products produced by inland provinces are processed for foods, ultimately consumed by developed southeastern region. By investigating the environmental inequities that exist and underlying reasons for them in mainland China, our results provide an empirical basis upon which policy makers can promote coordinated and sustainable development among regions in China.

지역산업연관분석을 이용한 지역축제 방문객에 의한 경제적 파급효과 분석: 2017 영주 한국선비문화축제를 중심으로

지역산업연관분석을 이용한 지역축제 방문객에 의한 경제적 파급효과 분석: 2017 영주 한국선비문화축제를 중심으로

Modelling the location choice: evidence from an evolutionary game based on regional input–output analysis

ABSTRACT This paper combines evolutionary game theory and input–output analysis to assess firms’ strategic location choice. To evaluate the model, firms competed in the automotive sector of Mercosur. To decide where to locate, the following exogenous factors were considered: potential market; local productive interdependence; tax incentive; and macroeconomic stability. Firms assigned weights to these factors in their location decision. It was found that competing in a market where there is tax exemption is not always an ideal location decision, contradicting the common-sense assumption by which there is a direct relationship between government incentives and the attractiveness of regions.

Modeling reductions in the environmental footprints embodied in European Union's imports through source shifting

The European Union (EU) is responsible for a disproportionately large share of global environmental footprints, in particular those embodied in trade through its imports. Import embodied footprints (IEFs) vary significantly depending on the country of origin, and therefore can be reduced through source shifting. We explore the impacts of shifting imports to the countries with lowest impact intensities per M€ according to four environmental pressures (carbon emissions, materials, water, and land), using Environmentally Extended Multi Regional Input-Output (EEMRIO) analysis. There are significant limitations of EEMRIO analysis (the price and product mix homogeneity assumptions), which we discuss in the paper. We find that a limited set of 13 products, among which food products and chemicals which are not elsewhere classified (n.e.c.), is responsible for more than half of all impacts embodied in imports for each pressure. Except for a few product groups, optimizing sourcing as to minimize impact for one pressure reduces impact in all others. The pressure exhibiting the highest scope for optimization is water. Carbon and material use optimization yields the largest reduction in other environmental pressures. We discuss increasing the policy relevance of EEMRIO in the case of IEFs by disaggregating n.e.c. product groups, and incorporating dynamic effects.

The economic impact of tourism in Central Finland: a regional input–output study

PurposeThe purpose of this study is to examine the total economic impact of tourism at the regional level in Central Finland. This paper aims to clarify the extent to which tourism contributes to regional output, employment, income and taxes in tourism-related sectors.Design/methodology/approachThis study is based on a regional input–output analysis. The author calculates the effects of tourism on regional output, demand, wages, employment and national and regional taxes in Central Finland.FindingsThe author’s regional input–output analysis reveals that tourism has a substantial impact on production in Central Finland (including the direct and indirect effects of consumption by tourists in different sectors). Moreover, the effects of tourism expenditures on employment and residents’ incomes in tourism-related sectors in Central Finland are quite significant.Research limitations/implicationsMany limitations of this study stem from the assumptions of the input–output model. Other limitations relate to the analysis of the impacts of tourism on household taxes, savings, consumption and net income. Our study uses average figures, which may overstate the effect of tourist expenditures on taxes because tourism jobs are often low paying.Practical implicationsThe study yields results that can be used to frame regional policy. The results may be useful for policymakers in planning for tourist attractions. Furthermore, local authorities may use the results to guide decisions regarding infrastructure investments or improvements to the operating environment of tourism industries.Originality/valueMany studies analyse the economic impact of events at the regional level using input–output analysis. National-level tourism impact studies using the input–output technique have also been conducted. Studies focussed on the economic impact of tourism at the regional level typically examine the macroeconomic (income, output and employment) effects of tourism. Consequently, these studies have focussed on estimating output, employment and income multipliers (Mazumder et al., 2012). The author’s contribution is a regional input–output analysis of direct and indirect impacts of tourism expenditures on production, demand, wages, income and employment in the whole economy at the regional level (in Central Finland). The author also analyses the impacts of tourism on national and regional taxes. The results of this study could be used by planners and policymakers involved in regional planning and development.

A multi-period perspective on tourism’s economic contribution – a regional input-output analysis for Sweden

PurposePrevious studies on tourism input-output (IO) primarily focus on a single year’s snapshot or utilize outdated IO coefficients. The purpose of this paper is to analyze the multi-period development of regional tourism capacities and its influence on the magnitude of the industry’s regional economic contribution. The paper highlights the importance of applying up-to-date IO coefficients to avoid estimation bias typically found in previous studies on tourism’s economic contribution.Design/methodology/approachFor the period 2008-2014, national IO tables are regionalized to estimate direct and indirect economic effects for output, employment, income and other value-added deffects. A comparison of Leontief inverse matrices is conducted to quantify estimation bias when using outdated models for analyzing tourism’s economic contribution.FindingsOn the one hand, economic linkages strengthened, especially for labour-intensive sectors. On the other hand, sectoral recessions in 2012 and 2014 led to an economy-wide decline of indirect effects, although tourists’ consumption was still increasing. Finally, estimation bias observed after applying an outdated IO model is quantified by approximately US$4.1m output, 986 jobs full-time equivalents, US$24.8m income and US$14.8m other value-added effects.Research limitations/implicationsPrevailing assumptions on IO modelling and regionalization techniques aim for more precise survey-based approaches and computable general equilibrium models to incorporate net changes in economic output. Results should be cross-validated by means of qualitative interviews with industry representatives.Practical implicationsAdditional costs for generating IO tables on an annual base clearly pay off when considering the improved accuracy of estimates on tourism’s economic contribution.Originality/valueThis study shows that tourism IO studies should apply up-to-date IO models when estimating the industry’s economic contribution. It provides evidence that applying outdated models involve the risk of estimation biases, because annual changes of multipliers substantially influence the magnitude of effects.

A consumption-based, regional input-output analysis of greenhouse gas emissions and the carbon regional index

A consumption-based, regional input-output analysis of greenhouse gas emissions and the carbon regional index

A consumption-based, regional input-output analysis of greenhouse gas emissions and the carbon regional index

This paper presents a consumption-based method accounting for greenhouse gas emissions at regional level based on a multi-region input-output model. The method is based on regional consumption and includes imports and exports of emissions, factual emission developments, green investments as well as low carbon development policies. We comparatively analyse three regional case studies in Denmark and show how regional initiatives implemented to reduce emissions are translated into easy to access input-output parameter changes and how the method transparently assesses the impact of various long-term regional climate plans on emissions. For the comparative analysis we further develop a carbon regional index (CRI), which delineates five key dimensions that define past, current and planned regional and embedded emissions. The method can form a basis for regional climate policies, promote the export of solutions from one region to another and enable policy-makers to observe good practices and test them at regional level before potential implementation on a larger scale.

MACROECONOMIC IMPACT OF EXPENDITURES ON HIGHER EDUCATION: REGIONAL INPUT-OUTPUT ANALYSIS

This paper deals with the regional input-output analysis and its application to evaluation of the macro-economic impact of expenditures on higher education. Regional input-output tables represent newly developed tool which can be used for the assessment of the regional economic impact of the particular industry and its institutions. The regional input-output tables were experimentally constructed by the Department of Economic Statistics at the University of Economics for all 14 Czech regions. Employing them, we can demonstrate the impact of expenditures on higher education on the macro-economic indicators and employment. This paper deals with 1 billion Czech crowns expenditures on higher education sent by the Ministry to the hypothetical higher education institution. Finally, the impact of higher education expenditures is compared with the impact of expenditures to another industries (ICT, R&D and tourism).

지방자치단체 스포츠이벤트 개최의 지역경제파급효과에 관한 연구

The purpose of this study is to analyze the effects of regional economic impact of sports events held by local governments. A total of 430 participants (participating teams: 73, visitors: 357) from `2016 Hwa-Rang National Youth Football Tournament’ held in Gyeongju city were used for actual analysis. Analysis of regional economic effect was performed through the estimates of direct expenditure by participants and the regional input-output analysis. The results of this study were as follows. First, on average, 7,725 participants stayed in the football tournament for 10.22 days, spending 7,910 billion won. 74,238 visitors stayed an average of 4.53 days, spending total of 26.8 billion won on average during the visit. Secondly, the effect of regional economy on Gyeongju was 38.1 billion won in production inducement amount, 19.1 billion won in value added amount and 812 in employment inducement. As a result, the hosting of local sporting events greatly contributes to the regional economy and thus a variety of programs should be provided to encourage the consumption of participants in the future.

Impacts of urban transformation on water footprint and sustainable energy in Shanghai, China

Abstract For the past three decades, the notion of sustainable cities has become central in planning and managing urban areas in the world and the large-scale city formation has been formed in big cities. As a result of economic growth and urban transformation, Shanghai, a major Chinese international metropolis, faces ongoing issues with resource waste and low energy utilization. Therefore, this paper aims to consider the availability of water for energy production from a consumption-based perspective and estimate the water footprint of the energy supply using a regional input-output analysis approach for Shanghai. As a result, we conclude that the water footprint of the energy supply of Shanghai is about 1.28 billion m 3 in 2007, with 46.1% of water used for electricity and heat supply. The total water withdrawal by the energy sector is about 2.35 billion m 3 and additional water withdrawal needed is about 35% of the total water withdrawals by the energy sector in Shanghai. Furthermore, an energy self-sufficiency scenario was developed, and the scenario analysis reveals that 55% more water would be required to ensure a self-sufficient energy sector. To guarantee future regional energy security, it is important to manage water resources effectively by allocating water resources among sectors.

Mapping the international flows of GHG emissions within a more feasible consumption-based framework

During the last two decades, the scientific literature has focused on the allocation of emissions embodied in international trade by implementing accounting procedures based on consumer-oriented perspective. While the Multi Regional Input-Output analysis has been accepted by the scientific community as an alternative to the IPCC accounting, some concerns arise from the feasibility and the actual implementation of this methodology. In this paper, we apply a simplified framework recently introduced by Caro et al. (2014a), called NCI (National Carbon Intensity) method, and estimate the total CO2 emissions due to consumption in 175 countries during the period 2008–2012, with a focus on the Mediterranean area. We estimate CO2 emissions embodied in trade, assigning emission responsibility on the basis of each country's demand. Globally in 2012, 8129 Mt CO2 emissions were related to goods produced in one country and consumed outside its boundaries. A relevant example is the export from China to consumers located in the USA, Japan, and Germany. A focus on the Mediterranean area, that resulted as a net importer of CO2 embodied in traded goods, identifies the export of emissions from Italy and Spain to France and from Libya and Algeria to Italy as the dominant flows. The NCI method provides a realistic picture of emissions due to consumption that differs from high resolution Multi Regional Input-Output database by less than 10%. The method can be largely adopted as a more feasible preliminary step towards consumption-based emission accounting and responsibility assignment.

Catchment metabolism: Integrating natural capital in the asset management portfolio of the water sector

The policy of the water sector demands integrated and resilient asset management. The majority of current research focuses on urban or community asset systems. To provide a fully integrated approach, one needs to delineate the focus of asset management at a catchment scale, to include the natural capital. The research described in this paper introduces such an approach, with the Environmental Regional Input-Output (E-RIO) analysis at its core.The novelty of the work is the conceptualisation of a catchment as a complex asset system, comprising of multiple subsystems. This expands the application of Industrial Ecology and functional modelling techniques in Integrated Catchment Management and Water Accounting. The Catchment Metabolism modelling schema created in this paper serves asset, water resources and catchment management purposes. The schema forms the grounds for structured collaboration among experts for integrated water resources planning and decision-making. In this paper the process of creating the modelling schema along with the techniques used are presented. A ‘live’ industrial example from the UK water sector (Poole Harbour Catchment) is used to demonstrate its application.

Economic impact of cruise industry using regional input–output analysis: a case study of Incheon

Asian countries are witnessing a newly emerging cruise industry. This study presents a methodology for estimating various aspects of the cruise industry’s economic impact using regional input–output (I-O) analysis. The methodology is applied to a study of the Port of Incheon (POI) that highlights the effects on both the regional and national economies as well as the interaction between the two regarding production induction, employment, and value added. The effects are analyzed under both the current situation and a scenario that includes development of shopping centers and amenities in Incheon in the future. The overall economic impact of the cruise sector on Incheon is relatively small compared to the impact on well-established cruise markets. This is because POI functions as a port of call for cruise lines, instead of a base port or home port, and earns cruise-related revenue mostly from the expenditures of passengers and crews. Moreover, cruise ship visits to POI mostly benefit the Seoul economy in terms of added value and job creation. The development scenario provides much greater economic benefits to Incheon and therefore justifies future development by POI and the city government.

An Analysis of Economic Impacts of Gochang biosphere by tourism : In case of Hajun mud village

The objective of this study is to analyze how much economic impact is changed before and after the designation as biosphere reserve area by tourism. The subject region of this study is Hajun mud village which is the famous place to experience eco-tourism located in Gochang-gun. This region has been designated as a UNESCO biosphere reserve in 2013. In order to estimate the regional economic effects, we employ a regional input-output model which is derived by a RAS method. Using regional input-output model analysis, this study estimates direct and indirect effects of tourist`s expenditure on experience of Hajun mud village in Gochang-gun across associated industries between 2011 and 2013. Also, we tried to calculate a net increase in number of visitors in 2013 with considering the trend of tourist in this region and estimate a net regional economic effect after the designation as a biosphere reserve area by tourism. The empirical result could be summarized as follows : (1) the change of production inducement effect shows that regional outputs is approximately increased by 386 million won between 2011 and 2013, (2) regional value-added is increased by 223 million won during the same period, (3) regional employment is approximately increased by 20 according to the labor inducement effects of expanding tourist`s expenditure in biosphere reserve area. (4) social service industry has highly been benefited by increase in experience tourist after Gochang-gun was designated as the biosphere reserve area. (5) estimated net increase in number of visitors after the designation as biosphere reserve area is about 37,364 which is 93.4% of the absolute increase in number of visitors amounting 40,011 between 2011 and 2013.