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Income Interdependence in the UK Multi-Regional Economy: A Meso-Level Analysis

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  • André Carrascal-Incera
  • Geoffrey J. D. Hewings

Abstract

Consumer expenditures in the United Kingdom account for over 50% of Gross Domestic Product on the expenditure side, yet their impact on economic activity is often overshadowed by attention to technological change, value chain analysis and especially international trade. In this paper, a recently developed interregional model of the UK economy, SEIM ( S ocio- E conomic I mpact M odel) will be used to provide some parallel perspectives to the role of interregional trade in goods and services by focusing on the interregional structure and impact of income and expenditures by households. Drawing on the original contributions of Miyazawa (1976) to highlight the contribution and structure of income interdependence complemented by interpretations offered by average propagation length, field of influence, and feedback loop analyses. The findings reveal the nature and strength of asymmetries in the structure of income formation and their impacts across the multiregional system. While there is only modest variation in aggregate income propagation by region, the accumulation of income is dominated by regions in the London area and secondarily by other metropolitan areas providing a source of explanation for the sustained income inequalities that have characterized the UK economy for almost a century.

Suggested Citation

  • André Carrascal-Incera & Geoffrey J. D. Hewings, 2024. "Income Interdependence in the UK Multi-Regional Economy: A Meso-Level Analysis," International Regional Science Review, , vol. 47(5-6), pages 591-621, November.
  • Handle: RePEc:sae:inrsre:v:47:y:2024:i:5-6:p:591-621
    DOI: 10.1177/01600176221125700
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    References listed on IDEAS

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    1. Sonis, Michael & Hewings, Geoffrey J.D., 1993. "Hierarchies of Regional Sub-Structures and Their Multipliers within Input-output Systems Miyazawa Revisited," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 34(1), pages 33-44, June.
    2. Lucía Bolea & Rosa Duarte & Geoffrey J. D. Hewings & Sofía Jiménez & Julio Sánchez‐Chóliz, 2022. "The role of regions in global value chains: an analysis for the European Union," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 771-794, August.
    3. Kijin Kim & Geoffrey J. D. Hewings, 2019. "Bayesian estimation of labor demand by age: theoretical consistency and an application to an input–output model," Economic Systems Research, Taylor & Francis Journals, vol. 31(1), pages 44-69, January.
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