IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v23y2012i1p92-107.html
   My bibliography  Save this article

Identification of regional fundamental economic structure (FES) of Chilean economy: A field of influence approach

Author

Listed:
  • Thakur, Sudhir K.
  • Alvayay, Jaime R.

Abstract

This study contributes to the understanding of the regional structure of the Chilean economy utilizing the fundamental economic structure (FES) approach. The regional FES construct implies that selected characteristics of an economy will vary predictably with economic size, as measured by regional: domestic product, population, total value added, and total sector output. The overarching problem addressed in this research is if identifiable patterns of relations among regional macro aggregates and economic transactions can be revealed via regional input-output tables. Jensen, West and Hewings discuss the tiered, partitioned, and temporal approaches to the identification of FES using regional input–output table and spatial economic data. This research addresses the following four research questions: (1) Does a regional FES exist for the Chilean economy? (2) What proportions of the cells are predictable? (3) Can stability patterns in the intermediate transaction table be identified for Chilean regional economy? (4) Which economic transactions are most important across regional economies in Chile? Four regression models: linear-linear, linear-logarithmic, linear-inverse, and linear-logarithmic of inverse are run to identify the largest proportion of predictable FES cells for the Chilean regional economy. The regional input–output tables (1996) for the 13 regions compiled by the National Institute of Statistics of Chile provide data for the analysis. A FES analysis shows 75% cells are predictable, 34% are stable, and 25% are important for Chilean regional economies. Further, 7% of the total fundamental economic activities are predictable, stable and important simultaneously. These strong FES based economic activities consist of chemicals, rubber, petroleum, and plastics as well as public services among several other fundamental industries.

Suggested Citation

  • Thakur, Sudhir K. & Alvayay, Jaime R., 2012. "Identification of regional fundamental economic structure (FES) of Chilean economy: A field of influence approach," Structural Change and Economic Dynamics, Elsevier, vol. 23(1), pages 92-107.
    • Handle: RePEc:eee:streco:v:23:y:2012:i:1:p:92-107
    DOI: 10.1016/j.strueco.2011.10.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X11000701
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2011.10.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hewings, Geoffry J. D. & Jensen, Rodney C. & West, Guy R. & Sonis, Michael & Jackson, Randall W., 1989. "The spatial organization of production: An input-output perspective," Socio-Economic Planning Sciences, Elsevier, vol. 23(1-2), pages 67-86.
    2. Eduardo A. Haddad & Jaime Bonet & Geoffrey J. D. Hewings, 2023. "Introduction and Overview," Advances in Spatial Science, in: Eduardo A. Haddad & Jaime Bonet & Geoffrey J. D. Hewings (ed.), The Colombian Economy and Its Regional Structural Challenges, chapter 0, pages 1-16, Springer.
    3. Sudhir K. THAKUR, 2011. "Fundamental Economic Structure And Structural Change In Regional Economies: A Methodological Approach," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 33, pages 9-38.
    4. Syrquin, Moshe, 1988. "Patterns of structural change," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 7, pages 203-273, Elsevier.
    5. Nijkamp, Peter & Rietveld, Piet & Snickars, Folke, 1987. "Regional and multiregional economic models: A survey," Handbook of Regional and Urban Economics, in: P. Nijkamp (ed.), Handbook of Regional and Urban Economics, edition 1, volume 1, chapter 7, pages 257-294, Elsevier.
    6. Raimundo Soto & Arístides Torche, 2004. "Spatial Inequality, Migration and Economic Growth in Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(124), pages 401-424.
    7. Hewings, Geoffrey J D & Jensen, Rodney C, 1988. "Emerging Challenges in Regional Input-Output Analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 22(0), pages 43-53, February.
    8. Anon, 2002. "The Economy of Influence," Environment and Planning A, , vol. 34(8), pages 1331-1332, August.
    9. Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), 2002. "Trade, Networks and Hierarchies," Advances in Spatial Science, Springer, number 978-3-662-04786-6, Fall.
    10. Thakur, Sudhir K., 2008. "Identification of temporal fundamental economic structure (FES) of India: An input-output and cross-entropy analysis," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 132-151, June.
    11. Zahler, Roberto, 1980. "Repercusiones monetarias y reales de la apertura financiera al exterior: el caso chileno: 1975-1978," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    12. Raimundo Soto & Aristides Torche, 2004. "Spatial Inequality in Chile," Econometric Society 2004 Latin American Meetings 241, Econometric Society.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fengyun Liu & Deqiang Liu & Reza Malekian & Zhixiong Li & Deqing Wang, 2017. "A measurement model for real estate bubble size based on the panel data analysis: An empirical case study," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-26, March.
    2. Pilar Campoy Muñoz & Manuel Alejandro Cardenete Flores & María del Carmen Delgado López, 2014. "Analysis of Structural Changes in Andalusian Economy Using Social Accounting Matrices," WIFO Working Papers 486, WIFO.
    3. Campoy-Muñoz, Pilar & Cardenete, Manuel Alejandro & Delgado, M. Carmen, 2015. "Strategic sectors and employment during the crisis: The case of Andalusia || Sectores estratégicos y empleo durante la crisis: el caso de Andalucía," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 20(1), pages 25-52, December.
    4. Jorge Manuel Lopez & Manuel Alejandro Cardenete, 2015. "Andalusian Economic Structure over Social Accounting Matrices from FES analysis perspective," ERSA conference papers ersa15p523, European Regional Science Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sudhir K. Thakur, 2008. "Identification of Regional Fundamental Economic Structure (FES) of India: An Input-Output and Field of Influence Approach," WIDER Working Paper Series RP2008-59, World Institute for Development Economic Research (UNU-WIDER).
    2. Thakur, Sudhir K., 2008. "Identification of temporal fundamental economic structure (FES) of India: An input-output and cross-entropy analysis," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 132-151, June.
    3. Jorge Manuel Lopez & Manuel Alejandro Cardenete, 2015. "Andalusian Economic Structure over Social Accounting Matrices from FES analysis perspective," ERSA conference papers ersa15p523, European Regional Science Association.
    4. Gallego Francisco, 2013. "When Does Inter-School Competition Matter? Evidence from the Chilean “Voucher” System," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 525-562, August.
    5. Faguet, Jean-Paul & Shami, Mahvish, 2008. "Fiscal policy and spatial inequality in Latin America and beyond," LSE Research Online Documents on Economics 27162, London School of Economics and Political Science, LSE Library.
    6. Cárdenas-Retamal, Roberto & Dresdner-Cid, Jorge & Ceballos-Concha, Adams, 2021. "Impact assessment of salmon farming on income distribution in remote coastal areas: The Chilean case," Food Policy, Elsevier, vol. 101(C).
    7. Elena Vakulenko, 2016. "Does migration lead to regional convergence in Russia?," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 9(1), pages 1-25.
    8. Modrego, Félix & Berdegué, Julio A., 2015. "A Large-Scale Mapping of Territorial Development Dynamics in Latin America," World Development, Elsevier, vol. 73(C), pages 11-31.
    9. Florencia Borrescio-Higa & Nieves Valdés, 2022. "The Psychosocial Burden of Families with Childhood Blood Cancer," IJERPH, MDPI, vol. 19(1), pages 1-14, January.
    10. García Muñiz, Ana Salomé, 2013. "Input–output research in structural equivalence: Extracting paths and similarities," Economic Modelling, Elsevier, vol. 31(C), pages 796-803.
    11. Vargas, Enver, 2012. "El impacto del gasto público sobre el proceso de migración interna: Evidencia empírica para el periodo 2002-2007," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 23, pages 67-81.
    12. Luz María Ferrada & Pilar Zarzosa, 2010. "Diferencias Regionales en la Participación Laboral Femenina en Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 47(136), pages 249-272.
    13. Murat G. Kırdar & D. Şirin Saracoğlu, 2008. "Migration and regional convergence: An empirical investigation for Turkey," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 545-566, November.
    14. Valdés, Alberto & Foster, William, 2010. "Reflections on the Role of Agriculture in Pro-Poor Growth," World Development, Elsevier, vol. 38(10), pages 1362-1374, October.
    15. Marcelo Bergolo & Fedora Carbajal, 2010. "Exploring the Urban-Rural Labor Income Gap in Uruguay: A Quantile Regression Decomposition," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 25(2), pages 133-168, Diciembre.
    16. Juan Gabriel Brida & Silvia London & Mara Rojas, 2013. "Desempeno económico regional: un análisis dinámico para el caso chileno en el período 1960-2009," Revista de Economía del Rosario, Universidad del Rosario, November.
    17. Félix Modrego & Dusan Paredes & Gianni Romaní, 2017. "Individual and place-based drivers of self-employment in Chile," Small Business Economics, Springer, vol. 49(2), pages 469-492, August.
    18. Tomás Rau & Loreto Reyes & Sergio S. Urzúa, 2013. "The Long-term Effects of Early Lead Exposure: Evidence from a case of Environmental Negligence," NBER Working Papers 18915, National Bureau of Economic Research, Inc.
    19. Modrego, F. & Ramírez, E. & Tartakowsky, A., 2008. "La heterogeneidad espacial del desarrollo económico en Chile," Working papers 009, Rimisp Latin American Center for Rural Development.
    20. Tomás Rau & Sergio Urzúa & Loreto Reyes, 2015. "Early Exposure to Hazardous Waste and Academic Achievement: Evidence from a Case of Environmental Negligence," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(4), pages 527-563.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:23:y:2012:i:1:p:92-107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.