IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v44y2010i10p1329-1349.html

Uncovering the Factors behind Comparative Regional Economic Performance: A Multi-regional Computable General Equilibrium (CGE) Approach

Author

Listed:
  • James Giesecke
  • John Madden

Abstract

Giesecke J. A. and Madden J. R. Uncovering the factors behind comparative regional economic performance: a multi-regional computable general equilibrium (CGE) approach, Regional Studies. Recently, a new method has emerged for uncovering the factors driving regional growth disparities. The method involves historical analysis with a multi-regional computable general equilibrium (CGE) model. This paper has three main aims. First, to demonstrate the capacity of the CGE historical technique to decompose the causes of regional divergence into clearly specified economic factors. Second, to provide a generic miniature model that can be used as a template for adapting any multi-regional CGE model to give it the capacity for undertaking historical analysis. Third, to demonstrate that this same miniature model can be used to explain the regional results in terms of the major model mechanisms behind them. [image omitted] Giesecke J. A. et Madden J. R. Devoiler les facteurs derriere la performance economique comparative des regions: une facon CGE a plusieurs regions, Regional Studies. Recemment, une nouvelle methode qui cherche a devoiler les facteurs qui conduisent les ecarts de la croissance regionale a vu le jour. Cette methode necessite une analyse chronologique a partir d'un modele d'equilibre general a plusieurs regions sur ordinateur. Cet article a trois objectifs. Primo, on cherche a demontrer la capacite de la technique chronologique CGE a decomposer les causes de l'ecart regional en facteurs economiques precis. Secundo, on cherche a fournir un modele miniature generique que l'on peut employer en tant que gabarit afin d'adapter aucun modele CGE a plusieurs regions pour que l'on puisse augmenter sa capacite a faire une analyse chronologique. Tertio, on cherche a demontrer que ce meme modele miniature sert a expliquer les resultats regionaux en termes des mecanismes majeurs qui le soutiennent. Equilibre general sur ordinateur Croissance regionale Ecart regional Analyse chronologique a plusieurs regions Giesecke J. A. und Madden J. R. Ermittlung der Faktoren hinter der komparativen regionalen Wirtschaftsleistung: Ein multiregionaler CGE-Ansatz, Regional Studies. In jungster Zeit ist eine neue Methode zur Ermittlung der Faktoren entstanden, die beim Regionalwachstum Disparitaten verursachen. Die Methode beinhaltet eine historische Analyse mit einem multiregionalen berechenbaren allgemeinen Gleichgewichtsmodell (CGE-Modell). Mit unserem Beitrag verfolgen wir drei Hauptziele. Erstens mochten wir nachweisen, dass sich die historische CGE-Technik zu einer Dekomposition der Ursachen regionaler Divergenz in klar spezifizierte Wirtschaftsfaktoren eignet. Zweitens wollen wir ein generisches Miniaturmodell entwickeln, das als Vorlage zur Anpassung eines beliebigen multiregionalen CGE-Modells genutzt werden kann, um mit diesem Modell historische Analysen durchfuhren zu konnen. Drittens mochten wir nachweisen, dass sich anhand desselben Miniaturmodells die regionalen Ergebnisse hinsichtlich der grosseren, dahinterliegenden Modellmechanismen erlautern lassen. Berechenbares allgemeines Gleichgewicht Regionales Wachstum Regionale Divergenz Multiregionale historische Analyse Giesecke J. A. y Madden J. R. Descubrir los factores tras el rendimiento de la economia regional comparativa: un enfoque multiregional CGE, Regional Studies. Acaba de surgir un nuevo metodo para descubrir los factores que impulsan las desigualdades de crecimiento regional. Con este metodo se realizan analisis historicos mediante un modelo de equilibrio general computable y multiregional. Este documento tiene tres objetivos principales. Primero, demostrar la capacidad de la tecnica historica de equilibrio general computable (CGE) para descomponer las causas de divergencia regional en factores economicos claramente especificos. Segundo, ofrecer un modelo generico en miniatura que puede servir como plantilla para adaptar cualquier modelo multiregional CGE y otorgarle la capacidad de realizar analisis historicos. Tercero, demostrar que este mismo modelo en miniatura puede servir para explicar los resultados regionales en terminos de los mecanismos principales en el modelo que existen detras. Equilibrio computable general Crecimiento regional Divergencia regional Analisis historico multiregional

Suggested Citation

  • James Giesecke & John Madden, 2010. "Uncovering the Factors behind Comparative Regional Economic Performance: A Multi-regional Computable General Equilibrium (CGE) Approach," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1329-1349.
    • Handle: RePEc:taf:regstd:v:44:y:2010:i:10:p:1329-1349
    DOI: 10.1080/00343400802070886
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400802070886
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343400802070886?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Suahasil Nazara & Geoffrey J.D. Hewings, 2004. "Spatial Structure and Taxonomy of Decomposition in Shift‐Share Analysis," Growth and Change, Wiley Blackwell, vol. 35(4), pages 476-490, September.
    2. Harrigan, Frank & McGregor, Peter G. & Dourmashkin, Neil & Perman, Roger & Swales, Kim & Yin, Ya Ping, 1991. "AMOS : A macro-micro model of Scotland," Economic Modelling, Elsevier, vol. 8(4), pages 424-479, October.
    3. Uwe Blien & Katja Wolf, 2002. "Regional development of employment in eastern Germany: an analysis with an econometric analogue to shift-share techniques," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 391-414.
    4. W. Jill Harrison & J. Mark Horridge & K.R. Pearson, 2000. "Decomposing Simulation Results with Respect to Exogenous Shocks," Computational Economics, Springer;Society for Computational Economics, vol. 15(3), pages 227-249, June.
    5. Adams, Philip D. & Dixon, Peter B. & McDonald, Daina & Meagher, G. A. & Parmenter, Brian R., 1994. "Forecasts for the Australian economy using the MONASH model," International Journal of Forecasting, Elsevier, vol. 10(4), pages 557-571, December.
    6. Edgar S. Dunn, 1960. "A Statistical And Analytical Technique For Regional Analysis," Papers in Regional Science, Wiley Blackwell, vol. 6(1), pages 97-112, January.
    7. Mustafa Dinc & Kingsley Haynes, 2005. "Productivity, International Trade and Reference Area Interactions in Shift‐Share Analysis: Some Operational Notes," Growth and Change, Wiley Blackwell, vol. 36(3), pages 374-394, June.
    8. Maria Abreu & Henri L. F. de Groot & Raymond J. G. M. Florax, 2005. "A Meta‐Analysis of β‐Convergence: the Legendary 2%," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 389-420, July.
    9. James Giesecke, 2002. "Explaining regional economic performance: An historical application of a dynamic multi-regional CGE model," Review of Economic Design, Springer;Society for Economic Design, vol. 81(2), pages 247-278, April.
    10. Geoffrey J. D. Hewings & Michael Sonis & Moss Madden & Yoshio Kimura (ed.), 1999. "Understanding and Interpreting Economic Structure," Advances in Spatial Science, Springer, number 978-3-662-03947-2.
    11. Paul C. Cheshire & Edward J. Malecki, 2004. "Growth, development, and innovation: A look backward and forward," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 249-267, Springer.
    12. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 94-113, June.
    13. Eduardo Haddad & Geoffrey Hewings, 1999. "The short-run regional effects of new investments and technological upgrade in the Brazilian automobile industry: An interregional computable general equilibrium analysis," Oxford Development Studies, Taylor & Francis Journals, vol. 27(3), pages 359-383.
    14. Russel Cooper & Kieran Donaghy & Geoffrey Hewings (ed.), 2007. "Globalization and Regional Economic Modeling," Advances in Spatial Science, Springer, number 978-3-540-72444-5.
    15. Daina McDonald & Peter B. Dixon, 1988. "The Australian Economy: 1987–88 and 1988–89," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 21(2), pages 3-26, June.
    16. Peter, Matthew W. & Horridge, Mark & Meagher, G. A. & Naqvi, Fazana & Parmenter, B. R., "undated". "The Theoretical Structure of MONASH-MRF," Center of Policy Studies (COPS) Impact Project Papers 266356, Monash University Center of Policy Studies.
    17. Dixon, Peter B. & Parmenter, B. R. & Powell, Alan A., 1984. "The role of miniatures in computable general equilibrium modelling : Experience from ORANI," Economic Modelling, Elsevier, vol. 1(4), pages 421-428, October.
    18. Johan Lundberg, 2006. "Using spatial econometrics to analyse local growth in Sweden," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 303-316.
    19. James A. Giesecke & John R. Madden, 2007. "Regional Adjustment to Globalization: A CGE Analytical Framework," Advances in Spatial Science, in: Russel Cooper & Kieran Donaghy & Geoffrey Hewings (ed.), Globalization and Regional Economic Modeling, chapter 11, pages 229-261, Springer.
    20. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    21. Masayuki Doi, 2006. "Introduction to Computable General Equilibrium Approaches in Urban and Regional Policy Studies," World Scientific Book Chapters, in: Masayuki Doi (ed.), Computable General Equilibrium Approaches In Urban And Regional Policy Studies, chapter 1, pages 3-7, World Scientific Publishing Co. Pte. Ltd..
    22. Peter G. McGregor & J. Kim Swales & Ya Ping Yin, 1999. "Spillover and Feedback Effects in General Equilibrium Interregional Models of the National Economy: A Requiem for Interregional Input-Output?," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & Moss Madden & Yoshio Kimura (ed.), Understanding and Interpreting Economic Structure, chapter 9, pages 167-190, Springer.
    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. James A. Giesecke & John R. Madden, 2013. "Evidence-based regional economic policy analysis: the role of CGE modelling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 285-301.
    2. David Nguyen, 2019. "Regional Economic Disparities and Development in the UK," National Institute of Economic and Social Research (NIESR) Policy Papers 10, National Institute of Economic and Social Research.
    3. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 379-475, Elsevier.
    4. Georgeta Lixandru (Bardasu), 2015. "The Evolution of the Performances at Regional Level," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(4), pages 135-139, October.

    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. James A Giesecke & John R Madden, 2006. "Uncovering the Factors behind Comparative Regional Economic Performance: A Dynamic CGE Approach," Centre of Policy Studies/IMPACT Centre Working Papers g-165, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 379-475, Elsevier.
    3. James A. Giesecke & John R. Madden, 2013. "Evidence-based regional economic policy analysis: the role of CGE modelling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 285-301.
    4. James Giesecke, 2008. "A Top-down Framework for Regional Historical Analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(1), pages 45-87.
    5. Gilmartin, Michelle & Swales, Kim J. & Turner, Karen, 2008. "A comparison of results from MRIO and interregional computable general equilibrium (CGE) analyses of the impacts of a positive demand shock on the ‘CO2 trade balance’ between Scotland and the rest of the UK," SIRE Discussion Papers 2008-24, Scottish Institute for Research in Economics (SIRE).
    6. Soo Ha & J. Swales, 2012. "The export-base model with a supply-side stimulus to the export sector," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(2), pages 323-353, October.
    7. Michelle Gilmartin & Peter McGregor & Kim Swales & Karen Turner, 2009. "The added value from adopting a CGE approach to analyse changes in environmental trade balances," Working Papers 0903, University of Strathclyde Business School, Department of Economics.
    8. Karen Turner & Michelle Gilmartin & Peter G. McGregor & J. Kim Swales, 2012. "An integrated IO and CGE approach to analysing changes in environmental trade balances," Papers in Regional Science, Wiley Blackwell, vol. 91(1), pages 161-180, March.
    9. Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2014. "Classic and Spatial Shift-Share Analysis of State-Level Employment Change in Brazil," Advances in Spatial Science, in: Karima Kourtit & Peter Nijkamp & Robert Stimson (ed.), Applied Regional Growth and Innovation Models, edition 127, chapter 0, pages 139-172, Springer.
    10. Guilhoto, Joaquim José Martins & Hasegawa, Marcos & Lopes, Ricardo Luis, 2002. "A estrutura teórica do modelo inter-regional para a economia brasileira - MIBRA [The theoretical structure of inter regional model for the Brazilian economy - MIBRA]," MPRA Paper 54019, University Library of Munich, Germany.
    11. Jean‐François Ruault & Yves Schaeffer, 2020. "Scalable shift‐share analysis: Novel framework and application to France," Papers in Regional Science, Wiley Blackwell, vol. 99(6), pages 1667-1690, December.
    12. Kingsley E. Haynes & Jitendra Parajuli, 2014. "Shift-share analysis: decomposition of spatially integrated systems," Chapters, in: Robert Stimson (ed.), Handbook of Research Methods and Applications in Spatially Integrated Social Science, chapter 16, pages 315-344, Edward Elgar Publishing.
    13. James Giesecke & Peter B. Dixon & Maureen T. Rimmer, 2008. "Regional macroeconomic outcomes under alternative arrangements for the financing of public infrastructure," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 3-31, March.
    14. Miguel A. Márquez & Julián Ramajo & Geoffrey J. D. Hewings, 2009. "Incorporating Sectoral Structure into Shift–Share Analysis," Growth and Change, Wiley Blackwell, vol. 40(4), pages 594-618, December.
    15. Chico, José Ruiz & Sánchez, Antonio Rafael Peña & García, Mercedes Jiménez, 2021. "Análisis de competitividad de las exportaciones españolas con destino a la Unión Europea: especial énfasis en el sector agroalimentario," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 59(4), January.
    16. Gong, Ziqian & Cai, Yongyang, 2022. "Development under Spatial Equilibrium for the Great Lakes Region," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322115, Agricultural and Applied Economics Association.
    17. Roberto Patuelli & Aura Reggiani & Peter Nijkamp & Uwe Blien, 2006. "New Neural Network Methods for Forecasting Regional Employment: an Analysis of German Labour Markets," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(1), pages 7-30.
    18. Shaoming Cheng, 2011. "Business cycle, industrial composition, or regional advantage? A decomposition analysis of new firm formation in the United States," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 147-167, August.
    19. Glyn Wittwer & Mark Horridge, 2010. "Bringing Regional Detail to a CGE Model using Census Data," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(2), pages 229-255.
    20. Dixon, Peter B. & Rimmer, Maureen T., 2013. "Validation in Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1271-1330, Elsevier.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:44:y:2010:i:10:p:1329-1349. See general information about how to correct material in RePEc.

    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. RePEc uses bibliographic data supplied by the respective publishers.