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


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


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

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    References listed on IDEAS

    1. 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.
    2. Nikolay Nenovsky & S. Statev, 2006. "Introduction," Post-Print halshs-00260898, HAL.
    3. 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.
    4. 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.
    5. repec:sae:ecolab:v:16:y:2006:i:2:p:1-2 is not listed on IDEAS
    6. 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.
    7. 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.
    8. M. Ruth & K. Donaghy & P. Kirshen, 2006. "Introduction," Chapters,in: Regional Climate Change and Variability, chapter 1 Edward Elgar Publishing.
    9. 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.
    10. 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.
    11. 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.
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    Cited by:

    1. 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.
    2. 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.
    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.


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