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Are There Key Sectors? An Appraisal Using Applied General Equilibrium

Author

Listed:
  • M. Alejandro Cardenete

    (Universidad Loyola Andalucía)

  • M. Carmen Lima

    (Universidad Pablo de Olavide)

  • Ferran Sancho

    (Universidad Autónoma de Barcelona)

Abstract

An extension of the hypothetical extraction method to a general equilibrium setting is considered. This has the advantage of re-interpreting output changes as efficiency gains or losses, which may be of use in identifying “key” sectors in an interconnected economy. The categorization may be relevant for the evaluation of intersectoral synergies and for improving policy planning and orienting economic strategy. We argue that the standard measures based on gross outputs may not capture all of the relevant impacts and this is so because of some self-imposed modeling and accounting limitations. An economy-wide Computable General Equilibrium (CGE) approach provides a modeling platform that overcomes these limitations since it offers (i) a more comprehensive measure of linkages and (ii) an alternative way of accounting for linkages’ relevance that is in closer accordance with the standard statistical magnitudes used in national or regional accounts.

Suggested Citation

  • M. Alejandro Cardenete & M. Carmen Lima & Ferran Sancho, 2013. "Are There Key Sectors? An Appraisal Using Applied General Equilibrium," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 111-129, Winter.
    • Handle: RePEc:rre:publsh:v:43:y:2013:i:23:p:111-129
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    References listed on IDEAS

    as
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    Cited by:

    1. Juan Carlos Leyva Lopez & Diego Alonso Gastelum Chavira & Margarita Urias Ruiz, 2016. "A comparative approach of economic sectors in Sinaloa, Mexico, based on multicriteria decision aiding," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 13(1), pages 97-124, Enero-Jun.
    2. Miguel, Francisco Javier de & Llop Llop, Maria & Manresa, Antonio, 1954-, 2011. "Simulating the Impact of Sectorial Productivity Gains on Two Regional Economies: Key Sectors from a Supply Side Perspective," Working Papers 2072/169681, Universitat Rovira i Virgili, Department of Economics.
    3. Francisco Miguel & Maria Llop & Antonio Manresa, 2014. "Sectoral productivity gains in two regional economies: key sectors from a supply-side perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 731-744, November.
    4. Juan Carlos Leyva Lopez & Diego Alonso Gastelum Chavira & Margarita Urias Ruiz, 2016. "A comparative approach of economic sectors in Sinaloa, Mexico, based on multicriteria decision aiding," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 13(1), pages 97-124, Enero-Jun.

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    More about this item

    Keywords

    key sectors; hypothetical extraction; applied general equilibrium; economic impulse; sectoral efficiency;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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