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Multipliers in an Island Economy: The Case of the Azores


  • Eduardo A. Haddad


  • Vasco Silva, Alexandre A. Porsse, Tomaz Dentinho


In this paper we present the interisland input-output system for the Azores. It includes the economy of the nine islands of the archipelago, considering 25 different economic activities. The paper also analyses the impacts of the main drivers of the islands economy incorporating both spillover and feedback effects in the evaluation of the multipliers: i) dairy and beef exports; ii) external public support; and iii) tourism, both from the rest of the country and from abroad. It is shown that: i) the economic structure of the islands is quite different from each other; ii) the specific economic base of the islands are also different and, as expected, the biggest islands not only capture an important part of the impact of external pushes done in smaller islands but also they constitute important drivers of smaller islands.

Suggested Citation

  • Eduardo A. Haddad & Vasco Silva, Alexandre A. Porsse, Tomaz Dentinho, 2012. "Multipliers in an Island Economy: The Case of the Azores," Working Papers, Department of Economics 2012_24, University of São Paulo (FEA-USP).
  • Handle: RePEc:spa:wpaper:2012wpecon24

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    References listed on IDEAS

    1. Randall Jackson & Alan Murray, 2004. "Alternative Input-Output Matrix Updating Formulations," Economic Systems Research, Taylor & Francis Journals, vol. 16(2), pages 135-148.
    2. Peter B. Dixon & Maureen T. Rimmer, 2004. "Disaggregation of results from a detailed general equilibrium model of the US to the State level," Centre of Policy Studies/IMPACT Centre Working Papers g-145, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Clopper Almon, 2000. "Product-to-Product Tables via Product-Technology with No Negative Flows," Economic Systems Research, Taylor & Francis Journals, vol. 12(1), pages 27-43.
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    Cited by:

    1. Eduardo A. Haddad & Natalia Q. Cotarelli, Thiago C. Simonato, Vinicius A. Vale & Jaqueline C. Visentin, 2018. "The Grand Tour: Keynes and Goodwin go to Greece," Working Papers, Department of Economics 2018_01, University of São Paulo (FEA-USP).

    More about this item


    Input-Output; Islands; Regional Development; Azores;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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