IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v40y2006i3p329-343.html
   My bibliography  Save this article

Assessing industry linkages using regional input-output tables

Author

Listed:
  • Peter Midmore
  • Max Munday
  • Annette Roberts

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 cles, Tableaux d'echanges 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. Industrieverknupfungen, 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. Vinculos industriales, Analisis de sectores clave, Tablas Input-Output, Eigenvectores, Gales

Suggested Citation

  • Peter Midmore & Max Munday & Annette Roberts, 2006. "Assessing industry linkages using regional input-output tables," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 329-343.
  • Handle: RePEc:taf:regstd:v:40:y:2006:i:3:p:329-343
    DOI: 10.1080/00343400600631673
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400600631673
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00343400600631673?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. McAleese, Dermot & McDonald, Donogh, 1978. "Employment Growth and the Development of Linkages in Foreign-Owned and Domestic Manufacturing Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(4), pages 321-339, November.
    2. Sonis, Michael & Guilhoto, Joaquim José Martins & Hewings, Geoffrey J.D. & Martins, Eduardo B., 1995. "Linkages, key sectors and structural change: some new perspectives," MPRA Paper 54754, University Library of Munich, Germany.
    3. Peter Gripaios & Max Munday, 2000. "Uneven Development in UK Financial Services: The Case of the South West and Wales," The Service Industries Journal, Taylor & Francis Journals, vol. 20(1), pages 153-180, January.
    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 & Francis Journals, vol. 9(3), pages 335-351.
    5. Edward Feser & Edward Bergman, 2000. "National Industry Cluster Templates: A Framework for Applied Regional Cluster Analysis," Regional Studies, Taylor & Francis Journals, vol. 34(1), pages 1-19.
    6. Cella, Guido, 1984. "The Input-Output Measurement of Interindustry Linkages," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 46(1), pages 73-84, February.
    7. Erik Dietzenbacher, 2002. "Interregional Multipliers: Looking Backward, Looking Forward," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 125-136.
    8. John Parr & Geoffrey Hewings & Jungyul Sohn & Suahasil Nazara, 2002. "Agglomeration and Trade: Some Additional Perspectives," Regional Studies, Taylor & Francis Journals, vol. 36(6), pages 675-684.
    9. Ivan Turok, 1997. "Linkages in the Scottish Electronics Industry: Further Evidence," Regional Studies, Taylor & Francis Journals, vol. 31(7), pages 705-711.
    10. Ian R. Gordon & Philip McCann, 2000. "Industrial Clusters: Complexes, Agglomeration and/or Social Networks?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 513-532, March.
    11. Rodney A. Erickson, 1974. "The Regional Impact of Growth Firms: The Case of Boeing, 1963-1968," Land Economics, University of Wisconsin Press, vol. 50(2), pages 127-136.
    12. Lever, William F, 1974. "Regional Multipliers and Demand Leakages at Establishment Level," Scottish Journal of Political Economy, Scottish Economic Society, vol. 21(2), pages 111-122, June.
    13. Eduardo Haddad & Michael Sonis & Geoffrey J. D. Hewings, 1996. "A typology of propagation of changes on the structure of a multiregional economic system: the case of the European Union, 1975-1985," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 30(4), pages 391-408.
    14. Leroy P. Jones, 1976. "The Measurement of Hirschmanian Linkages," The Quarterly Journal of Economics, Oxford University Press, vol. 90(2), pages 323-333.
    15. Steven Brand & Stephen Hill & Max Munday, 2000. "Assessing the Impacts of Foreign Manufacturing on Regional Economies: The Cases of Wales, Scotland and the West Midlands," Regional Studies, Taylor & Francis Journals, vol. 34(4), pages 343-355.
    16. Brian Roberts & Robert J. Stimson, 1998. "original: Multi-sectoral qualitative analysis: a tool for assessing the competitiveness of regions and formulating strategies for economic development," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 32(4), pages 469-494.
    17. 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.
    18. Philip Mccann, 1997. "How Deeply Embedded is Silicon Glen? A Cautionary Note," Regional Studies, Taylor & Francis Journals, vol. 31(7), pages 695-703.
    19. Gillian Bristow & Peter Gripaios & Max Munday, 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, May.
    20. W B Beyers, 1976. "Empirical Identification of Key Sectors: Some Further Evidence," Environment and Planning A, , vol. 8(2), pages 231-236, April.
    21. Diamond, J, 1976. "Key Sectors in Some Underdeveloped Countries: A Comment," Kyklos, Wiley Blackwell, vol. 29(4), pages 762-764.
    22. Dietzenbacher, Erik, 1992. "The measurement of interindustry linkages : Key sectors in the Netherlands," Economic Modelling, Elsevier, vol. 9(4), pages 419-437, October.
    23. McDermott, Philip, 1979. "Multinational Manufacturing Firms and Regional Development: External Control in the Scottish Electronics Industry," Scottish Journal of Political Economy, Scottish Economic Society, vol. 26(3), pages 287-306, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liis LILL, 2008. "Assessing Economic Complexity in some OECD countries with Input-Output Based Measures," EcoMod2008 23800082, EcoMod.
    2. João C. Lopes & João Dias & João F. Amaral, 2012. "Assessing economic complexity as interindustry connectedness in nine OECD countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(6), pages 811-827, January.
    3. Giannis Karagiannis & Vangelis Tzouvelekas, 2010. "Sectoral linkages and industrial efficiency: a dilemma or a requisition in identifying development priorities?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 207-233, August.
    4. Henrique Morrone, 2018. "Which Sectors To Stimulate First In Brazil? Estimating The Sectoral Power To Pull The Economy Out Of The Recession," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 95, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Sunggoan Choi, 2013. "Revealing the Growth Potentials with Input-Output Model at Sub-national Level," ERSA conference papers ersa13p73, European Regional Science Association.
    6. Titze, Mirko & Brachert, Matthias & Kubis, Alexander, 2008. "The Identification of Regional Industrial Clusters Using Qualitative Input-Output Analysis," IWH Discussion Papers 13/2008, Halle Institute for Economic Research (IWH).
    7. Andrew Crawley & Max Munday, 2017. "Priority sectors in city regions? Some issues from a study of the Cardiff Capital Region," Local Economy, London South Bank University, vol. 32(6), pages 576-589, September.
    8. Morrissey, Karyn & O'Donoghue, Cathal, 2011. "The Marine Economy and Regional Development," Working Papers 148923, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    9. Elvio Mattioli e Giuseppe Ricciardo Lamonica, 2012. "Degree of integration and activation power of tourism in the European countries’ economies: an input-output analysis," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 66(2), pages 57-72.
    10. Mirko Titze & Matthias Brachert & Alexander Kubis, 2011. "The Identification of Regional Industrial Clusters Using Qualitative Input-Output Analysis (QIOA)," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 89-102.
    11. Bhoj Raj Khanal & Christopher Gan & Susanne Becken, 2014. "Tourism Inter-Industry Linkages in the Lao PDR Economy: An Input—Output Analysis," Tourism Economics, , vol. 20(1), pages 171-194, February.
    12. Chiara Battistoni & Carolina Giraldo Nohra & Silvia Barbero, 2019. "A Systemic Design Method to Approach Future Complex Scenarios and Research Towards Sustainability: A Holistic Diagnosis Tool," Sustainability, MDPI, Open Access Journal, vol. 11(16), pages 1-30, August.
    13. Steven Deller & Philip Watson, 2016. "Did Regional Economic Diversity Influence The Effects Of The Great Recession?," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1824-1838, October.
    14. Morrissey, Karyn & O’Donoghue, Cathal, 2013. "The role of the marine sector in the Irish national economy: An input–output analysis," Marine Policy, Elsevier, vol. 37(C), pages 230-238.
    15. Flavio Lenz-Cesar & Almas Heshmati, 2010. "Agent-based Simulation of Cooperative Innovation," TEMEP Discussion Papers 201052, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2010.
    16. Morrissey, Karyn & O'Donoghue, Cathal, 2012. "The Potential for an Irish Maritime Transportation Cluster: An Input-Output Analysis," Working Papers 148836, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    17. Heshmati, Almas & Lenz-Cesar, Flávio, 2013. "Determinants and Policy Simulation of Firms Cooperation in Innovation," IZA Discussion Papers 7487, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ning Chang & Michael L. Lahr, 2016. "Changes in China’s production-source CO 2 emissions: insights from structural decomposition analysis and linkage analysis," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 224-242, June.
    2. Junning Cai & Pingsun Leung, 2004. "Linkage Measures: a Revisit and a Suggested Alternative," Economic Systems Research, Taylor & Francis Journals, vol. 16(1), pages 63-83.
    3. Steven Brand & Stephen Hill & Max Munday, 2000. "Assessing the Impacts of Foreign Manufacturing on Regional Economies: The Cases of Wales, Scotland and the West Midlands," Regional Studies, Taylor & Francis Journals, vol. 34(4), pages 343-355.
    4. I�aki Aldasoro & Ignazio Angeloni, 2015. "Input-output-based measures of systemic importance," Quantitative Finance, Taylor & Francis Journals, vol. 15(4), pages 589-606, April.
    5. Manuel Alejandro Cardenete & Pierre Boulanger & María del Carmen Delgado & Emanuele Ferrari & Robert M'barek, 2012. "An approach to describe the agri-food and other bio-based sectors in the European Union: Focus on Spain," JRC Working Papers JRC72097, Joint Research Centre (Seville site).
    6. Yue-Jun Zhang & Xiao-Juan Bian & Weiping Tan, 2018. "The linkages of sectoral carbon dioxide emission caused by household consumption in China: evidence from the hypothetical extraction method," Empirical Economics, Springer, vol. 54(4), pages 1743-1775, June.
    7. Julio Sanchez-Choliz & Rosa Duarte, 2003. "Production Chains and Linkage Indicators," Economic Systems Research, Taylor & Francis Journals, vol. 15(4), pages 481-494.
    8. Holz, Carsten A., 2011. "The unbalanced growth hypothesis and the role of the state: The case of China's state-owned enterprises," Journal of Development Economics, Elsevier, vol. 96(2), pages 220-238, November.
    9. Liis LILL, 2008. "Assessing Economic Complexity in some OECD countries with Input-Output Based Measures," EcoMod2008 23800082, EcoMod.
    10. Guilhoto, Joaquim José Martins & Sonis, Michael & Hewings, Geoffrey J.D. & Martins, Eduardo B., 1994. "Índices de ligações e setores chave na economia brasileira: 1959-1980 [Linkages and key-sectors in the Brazilian economy: 1959-180]," MPRA Paper 54759, University Library of Munich, Germany.
    11. Zhenshan Yang & Michael Dunford, 2017. "Cluster evolution and urban industrial dynamics in the transition from a planned to a socialist market economy: the case of Beijing," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(1), pages 50-71, January.
    12. Sonis, Michael & Guilhoto, Joaquim José Martins & Hewings, Geoffrey J.D., 1995. "The Asian economy: trade structure interpreted by feedback loop analysis," MPRA Paper 54756, University Library of Munich, Germany.
    13. Giannis Karagiannis & Vangelis Tzouvelekas, 2010. "Sectoral linkages and industrial efficiency: a dilemma or a requisition in identifying development priorities?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 207-233, August.
    14. Erik Dietzenbacher, 2002. "Interregional Multipliers: Looking Backward, Looking Forward," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 125-136.
    15. Scott Kelly & Peter Tyler & Douglas Crawford-Brown, 2016. "Exploring Vulnerability and Interdependency of UK Infrastructure Using Key-Linkages Analysis," Networks and Spatial Economics, Springer, vol. 16(3), pages 865-892, September.
    16. Ivanova, Galina, 2014. "The mining industry in Queensland, Australia: Some regional development issues," Resources Policy, Elsevier, vol. 39(C), pages 101-114.
    17. 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.
    18. Alejandro CARDENETE & Patricia FUENTES SAGUAR & Clemente POLO, 2008. "Energy System and CO2 emissions: a SAM Analysis," EcoMod2008 23800022, EcoMod.
    19. Ryoko Morioka & Keisuke Nansai & Koji Tsuda, 2018. "Role of linkage structures in supply chain for managing greenhouse gas emissions," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-21, December.
    20. Sonis, Michael & Guilhoto, Joaquim José Martins & Hewings, Geoffrey J.D. & Martins, Eduardo B., 1995. "Linkages, key sectors and structural change: some new perspectives," MPRA Paper 54754, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:40:y:2006:i:3:p:329-343. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.tandfonline.com/CRES20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.