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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.

Suggested Citation

  • Groenewold, N & Hagger, A J & Madden, J R, 1993. "Measuring Industry Importance: An Australian Application," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 27(2), pages 175-182.
  • Handle: RePEc:spr:anresc:v:27:y:1993:i:2:p:175-82
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    References listed on IDEAS

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    1. W Buhr & M Köppel, 1986. "Regional investment functions of material infrastructure: theoretical issues and selected empirical case studies," Environment and Planning A, Pion Ltd, London, vol. 18(4), pages 491-509, April.
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Alejandro CARDENETE & Patricia FUENTES SAGUAR & Clemente POLO, "undated". "Energy System and CO2 emissions: a SAM Analysis," EcoMod2008 23800022, EcoMod.
    5. 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, March.
    6. 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;Western Regional Science Association, pages 839-857.
    7. João Carlos Lopes, 2011. "High Employment Generating Industries in Portugal. An Input-Output Approach," Working Papers Department of Economics 2011/24, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    8. Ian P.Cassar, 2017. "Assessing structural change in the Maltese economy via the application of a hypothetical extraction analysis," CBM Working Papers WP/01/2017, Central Bank of Malta.

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