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Proposition for an additional input output multiplier metric to access the value contribution of regional cluster industries

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  • Oluwafisayo Alabi
  • Karen Turner
  • Julia Race
  • Antonios Katris

Abstract

This paper proposes a new multiplier metric to understand the value contribution of industries. We build on the conventional input output employment and income multiplier methods familiar to policy makers and academic research communities to propose a ‘wage premium’ multiplier that facilitates focus on the quality of employment embedded in supply chains. Here, we use the illustrative case of a key Scottish manufacturing chemicals industry. Crucially, our innovative and benchmarking approach demonstrates the potential vulnerabilities on the value contribution of key industries by identifying the interaction of higher average wages in some supply chain industries and numbers of jobs in others in delivering wage premium outcomes. Este artículo propone una nueva métrica multiplicadora para comprender la contribución del valor de las industrias. Se partió de métodos convencionales input‐output de multiplicación de ingresos y empleo, conocidos por los responsables políticos y las comunidades de investigación académica, para proponer un multiplicador de ‘prima salarial’ que facilite la atención a la calidad del empleo integrado en las cadenas de suministro. Para ello, se utilizó el caso ilustrativo de una importante industria química escocesa. De manera crucial, el enfoque innovador y de evaluación comparativa de este estudio demuestra las posibles vulnerabilidades en la contribución de valor de las industrias clave, mediante la identificación de la interacción de los salarios promedio más altos en algunas industrias de la cadena de suministro y el número de puestos de trabajo en otras para obtener resultados de primas salariales. 本稿では、産業の価値貢献を理解するための新しい乗数測度を提案する。我々は、政策立案者や学術研究コミュニティには馴染みの、雇用と所得に関する従来の産業連関乗数法に基づいて、サプライチェーンに根付いている雇用の質に焦点を当てることを可能にする「賃金プレミアム」乗数を提案する。本稿では、スコットランドの主要な化学工業の事例を用いて説明する。重要なことに、我々の提案する革新的なベンチマーキングのアプローチにより、賃金プレミアムの成果を出す上での、一部のサプライチェーン産業における高い平均賃金と他のサプライチェーンにおける雇用数の相互作用が特定され、主要産業の価値貢献における潜在的な脆弱性が実証される。

Suggested Citation

  • Oluwafisayo Alabi & Karen Turner & Julia Race & Antonios Katris, 2022. "Proposition for an additional input output multiplier metric to access the value contribution of regional cluster industries," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 795-809, August.
  • Handle: RePEc:bla:presci:v:101:y:2022:i:4:p:795-809
    DOI: 10.1111/pirs.12688
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    References listed on IDEAS

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    1. Turner, Karen & Alabi, Oluwafisayo & Smith, Martin & Irvine, John & Dodds, Paul E., 2018. "Framing policy on low emissions vehicles in terms of economic gains: Might the most straightforward gain be delivered by supply chain activity to support refuelling?," Energy Policy, Elsevier, vol. 119(C), pages 528-534.
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    3. Turner, Karen & Race, Julia & Alabi, Oluwafisayo & Katris, Antonios & Swales, J. Kim, 2021. "Policy options for funding carbon capture in regional industrial clusters: What are the impacts and trade-offs involved in compensating industry competitiveness loss?," Ecological Economics, Elsevier, vol. 184(C).
    4. Karen Turner & Michelle Gilmartin & Peter G. McGregor & J. Kim Swales, 2012. "An integrated IO and CGE approach to analysing changes in environmental trade balances," Papers in Regional Science, Wiley Blackwell, vol. 91(1), pages 161-180, March.
    5. Brendan Burchell & Kirsten Sehnbruch & Agnieszka Piasna & Nurjk Agloni, 2014. "The quality of employment and decent work: definitions, methodologies, and ongoing debates," Cambridge Journal of Economics, Oxford University Press, vol. 38(2), pages 459-477.
    6. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    7. Tobias Emonts-Holley & Andrew Ross & Kim Swales, 2021. "Estimating induced effects in IO impact analysis: variation in the methods for calculating the Type II Leontief multipliers," Economic Systems Research, Taylor & Francis Journals, vol. 33(4), pages 429-445, October.
    8. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
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