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Measuring Industry Importance: An Australian Application

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  • Groenewold, N
  • Hagger, A J
  • Madden, J R

Abstract

The focus of this paper is an empirical examination of the importance of an industry in terms of its contribution to regional employment. It uses a closed input-output model. Four alternative measures of importance are presented and explored in the framework of a 58-industry input-output model of the Australian State of Tasmania. The four measures are compared to each other, to direct employment and to a multiplier-based rule-of-thumb. Our preferred measure is one which takes into account both direct effects and the strength of backward linkages. The rule-of-thumb is found to be highly correlated to this measure.

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Bibliographic Info

Article provided by Springer in its journal Annals of Regional Science.

Volume (Year): 27 (1993)
Issue (Month): 2 ()
Pages: 175-82

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Handle: RePEc:spr:anresc:v:27:y:1993:i:2:p:175-82

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Cited by:
  1. Honghao Ren & Henk Folmer & Arno Vlist, 2014. "What role does the real estate–construction sector play in China’s regional economy?," The Annals of Regional Science, Springer, vol. 52(3), pages 839-857, May.
  2. Peter B. Dixon & Maureen T. Rimmer, 2004. "Measuring Contributions To The Australian Economy: The Benefits Of A Fast-Growing Motor Vehicle And Parts Industry," Economic Papers, The Economic Society of Australia, vol. 23(1), pages 73-87, 03.
  3. Abbas Valadkhani, 2003. "How Many Jobs Were Lost With the Collapse of Ansett?," School of Economics and Finance Discussion Papers and Working Papers Series 137, School of Economics and Finance, Queensland University of Technology.
  4. Lenzen, Manfred, 2003. "Environmentally important paths, linkages and key sectors in the Australian economy," Structural Change and Economic Dynamics, Elsevier, vol. 14(1), pages 1-34, March.
  5. João Carlos Lopes, 2011. "High Employment Generating Industries in Portugal. An Input-Output Approach," Working Papers Department of Economics 2011/24, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.

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