Regional Input-output Matrix Research Articles

Evaluation of Non-survey Methods for the Construction of Regional Input–Output Matrices When There is Partial Historical Information

Evaluation of Non-survey Methods for the Construction of Regional Input–Output Matrices When There is Partial Historical Information

The economy of the North-East region of Brazil based on the 2011 regional input-output matrix

This paper seeks to determine the leading sectors of the economy of the North-East region of Brazil based on input-output matrix methodology and the economic structure of 2011. For that purpose, the regional input-output matrix was updated from 2004 to 2011 and, subsequently, the Rasmussen-Hirschman linkage indices, field of influence and pure linkage indices were calculated, along with the type I and II multipliers of production, employment and income. The results confirm the importance of the textile and chemical sectors, along with those related to the oil industry, and show that the production of intermediate goods is one of the characteristics of the North-East region’s economy.

Macroeconomic Accounting of Water Resources: An Input-Output Approach to Linkage Analysis and Impact Indicators Applied to the State of Ceará, Brazil

This work aims to identify the key sectors of the economic structure, considering their water flows, and estimate each sector’s impact. The goal is to highlight systemic characteristics in the regional economy, establish water use priorities, and assess water security. Based on a regional input-output matrix, we use the following methodologies: the Rasmussen and Hirschman indices for the ‘forward and backward linkages’; simple multipliers of production, job, and income; and the elasticity of water consumption to final water demand. Thirty-two economic sectors and household consumption are analysed. From the elasticity of final water demand, we find that both trade and household consumption put more pressure on water consumption. Furthermore, a joint analysis of the applied methodologies shows that: (a) the trade sector is more relevant for the linkage of water flows, (b) the agriculture sector has the highest direct water consumption, and (c) the public administration sector has the highest intermediate water consumption.

The informal sector and Covid‐19 economic impacts: The case of Bahia, Brazil

AbstractThis paper aims to simulate the economic impacts of the withdrawal of informal workers from the labour market due to the social isolation policy implemented during the Covid‐19 pandemic in Bahia state, Brazil, where 66% of workers work in the informal sector. We also consider the government income compensation policy to make up part of their income. The partial hypothetical extraction method was used in a regional input–output matrix, base year 2012 with 42 economic sectors. Our simulations show that the withdrawal of informal workers decreases the productive capacity and leads to strong negative impacts on the economy, mainly in the service sectors. On the other hand, the income compensation policy mitigates the negative impacts by about 50%. Moreover, the public administration is the least impacted sector because it is mostly made up of formal workers.

El sector productivo de Tamaulipas a través del modelo de insumo-producto

Objetivo: se expone la conveniencia de estimar una matriz de insumo-producto regional y sus correspondientes multiplicadores contables para analizar el comportamiento económico sectorial del estado de Tamaulipas. Metodología: la información nacional se regionaliza mediante métodos indirectos basados en coeficientes de localización, y se estiman efectos directos e indirectos sobre la producción ante impactos en la demanda, además de encadenamientos productivos tipo Rasmussen. Resultados: los resultados muestran la hegemonía de la industria manufacturera en la estructura productiva tamaulipeca. Limitaciones: a pesar del nivel de agregación sectorial utilizado referente al año 2013. Conclusiones: así como el desempeño marginal de los multiplicadores de Leontief en el grueso de las actividades productivas de no manufactura.

REGIONAL INPUT-OUTPUT MATRICES AND AN APPLICATION TO ANALYZE A MANUFACTURING EXPORT SHOCK IN MEXICO

Based on the national Input-Output Matrix (IOM) 2012 calculated by INEGI, we estimate with the Flegg approach four regional Input-Output Matrices (RIOMs) using Banco de México’s regionalization (Northern, North-Central, Central and Southern). These RIOMs are employed to evaluate the impact on regional gross output, value added and employment from a 10,000 million dollar shock on Mexican manufacturing exports. The results show that the effects on the absolute values of gross output, value added and employment in the North are clearly larger than those estimated for the other regions. Another finding is that the total effects of the regional shocks tend to concentrate in the manufacturing sector, with the highest concentration observed in the North, and the lowest in the South. It is also shown that the North is, by far, the region experiencing the greatest change in its value added relative to GDP, followed by the North Central, the Central and the South. The results suggest a strong linkage between the manufacturing sector and tertiary activities, particularly commerce and services in the central regions, as well as between manufacturing and oil and gas extraction in the South.

Flexibilización del modelo de insumo-producto para determinar interdependencias productivas en la ciudad fronteriza de Reynosa, Tamaulipas, 2013

Con información económica del año 2013, se sugieren estrategias de política económica regional para el municipio fronterizo de Reynosa, Tamaulipas. A partir de los modelos de Leontief y Flegg, Webber y Elliot, se construye una matriz de insumo-producto regional y su correspondiente análisis de multiplicadores. Para complementar el procedimiento, se tipifica la influencia de la actividad industrial y se brinda una visión estructural de los encadenamientos productivos siguiendo a Rasmussen. Los resultados muestran el carácter marginal de los multiplicadores de producción, empleo, remuneración de los asalariados y valor agregado en las actividades productivas no manufactureras.

A mensuração do Produto Interno Bruto do agronegócio de Mato Grosso do Sul

This article seeks to measure the GDP of the state of Mato Grosso do Sul and characterize the agribusiness in the state's economy and their aggregates in the regional economy, for the year 2012. This calculation considered should be the contribution of each link in the economy within the productive chain of the state of agribusiness and its purchasing and sales relationships with other sectors. The input-output model constitutes an important tool to scale, with a higher degree of detail, the production chains and the aggregate of the constituent activities of agribusiness. The methodology and the data used based on various secondary sources where a regional input-output matrix where the value added to the consumer prices compiled and estimated, in addition to the aggregate structure as inputs, agriculture, agribusiness and distribution. It was found agribusiness participates with about 37% of the GDP of the state's economy in 2012, where the sectors with the highest relative share would be the distribution and agricultural households.

Dinámicas productivas y agrupamientos industriales en la región centro de México

El objetivo del artículo es analizar la estructura productiva de la región centro de México, su desempeño económico y los cambios principales en el periodo 2003-2011. A partir de una matriz regional de insumo-producto, estimada para 2003, se identifican los clusters sectoriales mediante el método de componentes principales; de los seis encontrados destacan los de servicios avanzados y al consumidor, concentrados sobre todo en Ciudad de México. Aunque la metodología empleada sólo se basa en la fortaleza de las transacciones intersectoriales de compraventa, este análisis permite revelar las formas de organización económica y empresarial que tienen lugar en la región, para afrontar las presiones competitivas sobre su desarrollo y crecimiento económico.

Water-energy-food nexus of sugarcane ethanol production in the state of Goiás, Brazil: An analysis with regional input-output matrix

Concerns about impacts of biomass growth for biofuel production emphasize the importance of planning energy crops expansion considering land, water, food and biodiversity. Brazil is the second largest ethanol producer worldwide and sugarcane is cultivated in many regions, including the Brazilian Cerrado (a Savannah-type biome). This paper analyses the impacts of first-generation sugarcane expansion in the Paranaíba basin (Goiás State), focusing on how future demand for ethanol could affect local resources availability. The study area is a sugarcane expansion frontier in Brazil, thus, the Cerrado biome should be focus of research considering competition for land and water uses. An economic-ecologic Input-Output (IO) framework was applied to develop a water-energy-food (WEF) nexus analysis. The Goiás’ IO table was expanded to assess water, energy and land uses, GHG emissions and employment levels through six different ethanol supply scenarios.Results show that if sugarcane expansion projected to 2030 considers the Goiás’ extended IO structure for the year 2008, it should cause little impact on land and water availability in the state, due to both the ample availability of suitable pasturelands for sugarcane expansion as well as water in most of the Paranaíba basin. The WEF nexus analysis is a valuable tool on guiding the sustainable management of natural resources considering water, energy, land use and GHG emissions as goals to the same policy. In particular, the hybrid extended IO-WEF nexus framework is useful to design effective biofuel policies, collectively addressing impacts on environmental, social and economic spheres, in a local or broader context.

An exploratory and comparative analysis between bottom-up and top-down approaches for a spatialized construction of a regional Input-Output matrix

The purpose of this paper is to explore and apply a methodology for the construction of a regional spatial input-output matrix, using a bottom-up approach, compared to the top-down of the Sonora 2008 regional matrix. We use the methodology proposed by Flegg for the estimation of regional matrixes, spatializing it with limited information. In addition, we compare the two regional matrixes constructed by identifying the type of productive sectors, their economic links and multiplier effects, highlighting the application of the statistical method of principal components. It should be clarified that the spatialized analysis of input -output matrixes has not been addressed in the literature hence the importance of its analysis. The results show either at spatial and sectoral levels, that the sectors and economic structure that come from the regional matrix constructed from bottom-up approach are theoretically and statistically coherence, contrary to what happens with the regional matrix constructed from top-down approach, which allow us to conclude the importance of considering economic space as a fundamental element in the construction of regional input-output matrices.

A methodological proposal for the construction of a regional input-output matrix using a bottom-up approach and its statistical assessment

The main purpose of this essay is to develop and implement a methodology for the construction of a regional input-output matrix using a bottom-up approach and compare it to the one made using a top-down approach, using as a case study the state of Sonora in México. We assume that the regional matrix, constructed with using a top-down approach, is inadequate for the comprehension of regional economic behavior and its structural economic and spatial attributes, and therefore it becomes necessary to rely on a bottom-up approach for the construction of regional input-output matrices.Our main concern is to develop a bottom-up methodology for the construction of regional input-output matrices and to show differences and similarities with the top-down approach, through a statistical assessment based on the statistical association between census data of both regional and national economic structures. Therefore, the main outcomes of this research are: 1) a review of the main methodological features of the debate for the construction of a regional input-output matrix; 2) a methodological proposal for the construction of a regional input-output matrix, using a bottom-top approach, and 3) an statistical assessment of the main differences and similarities between the construction of regional input-output matrices using both approaches, using as a case study the state of Sonora, Mexico.

How to Measure the Local Economic Impact of Universities? Methodological Overview

Today, the realization that certain economic units, such as universities or other large tertiary educational institutions have an impact on the economy of their region has gained prominence. There is a growing demand for precise studies on the economic impact of such entities, and the issue has attracted considerable attention in the scientific community. The examination of their economic impact is especially interesting when we compare regions with different levels of development, characterized by a successful international university. The different methods used in the literature render comparisons difficult; therefore, our focus is to recommend a method for investigating universities in different countries. In the absence of regional input-output matrices, a multiplier based approach is suggested for the first and second mission (education and research), while the application of a set of indicators is recommended for the third mission (knowledge transfer-related). There are several substantial problems in assessing the economic impact of universities. First, the definition of impact; second, measuring and estimating first-round expenditures and avoiding double-counting; third, estimating the model parameters (e.g. multipliers); fourth, the quantification of third mission activities. In this paper, we clarify theoretical definitions, resolve some contradictions, and consequently, recommend a feasible method considering the circumstances in Hungary.

A regional version of a US economic input-output life-cycle assessment model

Life cycle assessment models typically use product-specific, plant-level or national aggregate data. However, many decisions by regional policy makers would be better informed by local or regional aggregate data. This research is intended to construct and apply a regional US economic input-output analysis-based life cycle assessment (REIO-LCA) model based upon publicly available datasets. The model uses Gross State Product (GSP) estimates to calculate regional economic multipliers and then link them to regional electricity and fuel use, and air emission factors. Target audiences are governmental decision makers, industry experts and researchers concerned with the regional economic and environmental effects of public and private decisions. A regional version of the existing US EIO-LCA model was developed using regional economic multipliers and state environmental data. The national model is based on the US 491 by 491 economic input-output model, and uses sectoral energy consumption and emission factors to approximate the environmental effects of production and services. The proportion of the regional value added (Gross State Product) to the national value added for each sector was used to develop economic multipliers to allocate the output of industries to individual states and multi-state regions. Inter-sectoral transaction matrices were constructed for eight regions. Regional environmental emission and resource use factors were formed based upon publicly available data of the US Environmental Protection Agency (EPA) and Department of Energy. The Toxics Release Inventory include facility location parameters, enabling the estimation of sectoral toxic emissions for the regions. The national electricity and fuel use, air pollutants (CO, NOx, PM10, SO2 and VOC) and greenhouse gas emissions used by the EIO-LCA model were proportioned based upon state totals for each sector. A regional economic input-output model was created for US regions, and sectoral energy use and environmental emission factors were estimated for Pennsylvania, the Far West (Alaska, California, Hawaii, Nevada, Oregon and Washington) and the Mideast (Delaware, District of Columbia, Maryland, New Jersey, New York and Pennsylvania) economic areas. The use of the framework for regional IO-LCA model is demonstrated through two case studies. As a validation exercise, the regional outputs of petroleum refineries were calculated using the regional input-output matrices and the outcomes were compared to the Energy Information Administration’s (EIA) Petroleum State Profile data. The model results show that approximately 70% of the total national sectoral production takes place in three regions, i.e., South West, South East and Far West, which corresponds with the EIA statistics. The REIO-LCA model constructed for the Far West is used to conduct a second case study estimating the annual toxic air emissions of power plants in the region in 2003. The results are evaluated by comparison to data provided by the US EPA. The estimated pollutions do not differ significantly from those presented in the Toxics Release Inventory reports. The usefulness of IO LCA models can be improved through the incorporation of local economic and environmental characteristics. Wiht the lack of US regional sectoral data, the allocation of national industrial production to regions can provide a framework to create smaller scale IO models. The results of case studies support the assumption that the GSP multipliers may be used to allocate the sectoral production to the regions, and show that the framework IO LCA model provides a reasonable approximation of supply chain economic activities and environmental effects caused by production and services. The quality of data, e.g., age and level of aggregation, and the assumed linearity between sectoral outputs and environmental emissions represent the main sources of uncertainty in the model. The results show that the GSP estimates are appropriate to construct a framework for a regional economic input-output and environmental assessment model. However, further research is recommended to construct more specific state-level input-output matrices incorporating interstate commodity flows, and state environmental factors in order to mitigate the parameter uncertainties. Further, the model might be improved by updating it regularly, as more recent data become available.

Transformações na estrutura produtiva da economia paranaense nos anos 80 e 90

Este artigo apresenta a evolução da estrutura produtiva da economia paranaense nas décadas de 1980 e 1990. Para tanto, estimou-se uma série de 5 matrizes de insumo-produto para os anos de 1980, 1985, 1990, 1995 e 1999, divididas em 32 setores, a partir das quais foram calculados o campo de influência, os índices de ligação de Hirschman-Rasmussen e puros e os multiplicadores setoriais. Esses indicadores permitiram identificar, além dos setores-chave, a evolução das relações econômicas e interindustriais no período. Os resultados mostraram tendência de diversificação da estrutura produtiva estadual e de maior abertura comercial, refletida nos menores índices de ligações internas e nos multiplicadores de produção.

Effectiveness of farm policies on social and economic development in rural areas

A methodology for estimating the impact of agricultural support payments on both farm output and the wider economy at regional level is outlined and applied to one Scottish region. Using a Johansen-type model of the agriculture sector, the impact of support changes on agricultural output is forecast. A regional input-output matrix is derived and used to calculate income and employment multipliers for the main agricultural enterprises. Using these multipliers, forecasts of regional income and employment losses due to a partial reduction in agricultural support are made. Within the region, the spatial distribution of benefits is projected using a Gravity Model and mapped using a Geographic Information System.

Data Use and the Simulation of Regional Input-Output Matrices

There is a growing body of evidence which suggests that, used in conjunction with a suitable estimation method, the incorporation of good quality exogenous data can enhance the accuracy of simulated or updated regional input—output matrices. However, there has been little attempt to measure explicitly the accuracy of simulation results in relation to the data used in their estimation. Within the context of programming estimation procedure, comparable measures of the ‘quantity’ of exogenous data and the accuracy of simulation are developed in this paper. Subsequently, this framework is demonstrated using Scottish and Washington input—output tables.