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Assessing industry linkages using regional input--output tables

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Author Info
Peter Midmore
Max Munday
Annette Roberts

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Abstract

Midmore P., Munday M. and Roberts A. (2006) Assessing industry linkages using regional Input--Output tables, Regional Studies 40, 329--343. The regional policy literature has shown renewed interest in the promotion of industries with the potential to embed themselves into regional economies. Unfortunately, analysis of sectors within strategy-led documents often fails to tie the identification of key industries to any specific methodology. The paper demonstrates the use of several alternative methods of evaluating inter-industry linkages using Input--Output tables. In particular, and following the work of Dietzenbacher (1992), it uses financial information from Welsh Input--Output tables for 1995 to derive a measure giving specific insights into regional industry interdependency, and the presence of relatively self-contained groups of activity. This is the first time that this more complex measure has been applied to a regional transactions table in the UK, with the method shown to be of direct relevance to a smaller open economy. The results reveal differences in the rankings of key sectors compared with more conventional approaches. Conclusions discuss the importance of assessing industry interdependencies for the regional strategic planning process, and the problems associated with using Input--Output frameworks for such assessment. Midmore P., Munday M. and Roberts A. (2006) Assessing industry linkages using regional Input--Output tables, Regional Studies 40, 329--343. The regional policy literature has shown renewed interest in the promotion of industries with the potential to embed themselves into regional economies. Unfortunately, analysis of sectors within strategy-led documents often fails to tie the identification of key industries to any specific methodology. The paper demonstrates the use of several alternative methods of evaluating inter-industry linkages using Input--Output tables. In particular, and following the work of Dietzenbacher (1992), it uses financial information from Welsh Input--Output tables for 1995 to derive a measure giving specific insights into regional industry interdependency, and the presence of relatively self-contained groups of activity. This is the first time that this more complex measure has been applied to a regional transactions table in the UK, with the method shown to be of direct relevance to a smaller open economy. The results reveal differences in the rankings of key sectors compared with more conventional approaches. Conclusions discuss the importance of assessing industry interdependencies for the regional strategic planning process, and the problems associated with using Input--Output frameworks for such assessment. Echanges interindustriels, Analyse des secteurs clés, Tableaux d'échanges interindustriels, Vecteurs d'Eigen, Pays de Galles Midmore P., Munday M. and Roberts A. (2006) Assessing industry linkages using regional Input--Output tables, Regional Studies 40, 329--343. The regional policy literature has shown renewed interest in the promotion of industries with the potential to embed themselves into regional economies. Unfortunately, analysis of sectors within strategy-led documents often fails to tie the identification of key industries to any specific methodology. The paper demonstrates the use of several alternative methods of evaluating inter-industry linkages using Input--Output tables. In particular, and following the work of Dietzenbacher (1992), it uses financial information from Welsh Input--Output tables for 1995 to derive a measure giving specific insights into regional industry interdependency, and the presence of relatively self-contained groups of activity. This is the first time that this more complex measure has been applied to a regional transactions table in the UK, with the method shown to be of direct relevance to a smaller open economy. The results reveal differences in the rankings of key sectors compared with more conventional approaches. Conclusions discuss the importance of assessing industry interdependencies for the regional strategic planning process, and the problems associated with using Input--Output frameworks for such assessment. Industrieverknüpfungen, Analyse von Hauptsektoren, Aufwand-Ertragstabellen, Eigenvektoren, Wales Midmore P., Munday M. and Roberts A. (2006) Assessing industry linkages using regional Input--Output tables, Regional Studies 40, 329--343. The regional policy literature has shown renewed interest in the promotion of industries with the potential to embed themselves into regional economies. Unfortunately, analysis of sectors within strategy-led documents often fails to tie the identification of key industries to any specific methodology. The paper demonstrates the use of several alternative methods of evaluating inter-industry linkages using Input--Output tables. In particular, and following the work of Dietzenbacher (1992), it uses financial information from Welsh Input--Output tables for 1995 to derive a measure giving specific insights into regional industry interdependency, and the presence of relatively self-contained groups of activity. This is the first time that this more complex measure has been applied to a regional transactions table in the UK, with the method shown to be of direct relevance to a smaller open economy. The results reveal differences in the rankings of key sectors compared with more conventional approaches. Conclusions discuss the importance of assessing industry interdependencies for the regional strategic planning process, and the problems associated with using Input--Output frameworks for such assessment. Vínculos industriales, Análisis de sectores clave, Tablas Input--Output, Eigenvectores, Gales

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Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 40 (2006)
Issue (Month): 3 (May)
Pages: 329-343
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Handle: RePEc:taf:regstd:v:40:y:2006:i:3:p:329-343

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Related research
Keywords: Industry linkages; Key sector analysis; Input--Output tables; Eigenvectors; Wales;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Philip McCann, 1997. "How Deeply Embedded is Silicon Glen? A Cautionary Note," Regional Studies, Taylor and Francis Journals, vol. 31(7), pages 695-703, October. [Downloadable!] (restricted)
  2. Gillian Bristow, 1999. "Financial and Business Services and Uneven Economic Development: Some Welsh Evidence," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 90(2), pages 156-167, 05. [Downloadable!] (restricted)
  3. Erik Dietzenbacher, 2002. "Interregional Multipliers: Looking Backward, Looking Forward," Regional Studies, Taylor and Francis Journals, vol. 36(2), pages 125-136, April. [Downloadable!] (restricted)
  4. Nigel Driffield & Max Munday & Annette Roberts, 2002. "Foreign Direct Investment, Transactions Linkages, and the Performance of the Domestic Sector," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 9(3), pages 335-351, November. [Downloadable!] (restricted)
  5. Ivan Turok, 1993. "Inward Investment and Local Linkages: How Deeply Embedded is "Silicon Glen”?," Regional Studies, Taylor and Francis Journals, vol. 27(5), pages 401-417, January. [Downloadable!] (restricted)
  6. Ivan Turok, 1997. "Linkages in the Scottish Electronics Industry: Further Evidence," Regional Studies, Taylor and Francis Journals, vol. 31(7), pages 705-711, October. [Downloadable!] (restricted)
  7. Max Munday & Annette Roberts, 2001. "Assessing the Regional Transactions of Foreign Manufacturers in Wales: Issues and Determinants," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 92(2), pages 202-216, 05. [Downloadable!] (restricted)
  8. Edward J. Feser, Edward M. Bergman, 2000. "National Industry Cluster Templates: A Framework for Applied Regional Cluster Analysis," Regional Studies, Taylor and Francis Journals, vol. 34(1), pages 1-19, February. [Downloadable!] (restricted)
  9. Hewings, Geoffrey J. D. & Fonseca, Manuel & Guilhoto, Joaquim & Sonis, Michael, 1989. "Key sectors and structural change in the Brazilian economy: A comparison of alternative approaches and their policy implications," Journal of Policy Modeling, Elsevier, vol. 11(1), pages 67-90. [Downloadable!] (restricted)
  10. Crone, Mike & Roper, Stephen, 1999. "Knowledge Transfers from Multi-national Plants in Northern Ireland," ERSA conference papers ersa99pa053, European Regional Science Association. [Downloadable!]
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Malcolm Beynon & Max Munday, 2008. "Stochastic key sector analysis: an application to a regional input–output framework," The Annals of Regional Science, Springer, vol. 42(4), pages 863-877, December. [Downloadable!] (restricted)
  2. Mirko Titze & Matthias Brachert & Alexander Kubis, 2008. "The Identification of Regional Industrial Clusters Using Qualitative Input-Output Analysis," IWH Discussion Papers 13-08, Halle Institute for Economic Research. [Downloadable!]
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