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Revealing the Growth Potentials with Input-Output Model at Sub-national Level

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  • SUNGGOAN CHOI

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Abstract

The regional growth potential, which frequently appears in economic analyses, is notoriously difficult to handle in practice. Estimation of growth potentials for development forecasting and strategic planning remains actual and meaningful, which is especially true for long-term predictions of structural shifts in the economy, both at national and regional level. The Regional Input-Output (RIO) model has been a powerful tool in applications of the industrial interdependence, impact analysis and policy strategies. Also the RIO model can be attempted to identify leading industries through linkage effects. The backward and forward linkages for the sectors in a single economy provide a mechanism for identifying key or leading sectors in the economy. In this study, we try to identify the leading industries by the RIO model along with non-survey techniques to explore growth potentials. The estimated multipliers which represent the backward linkage are compared with the survey based benchmarks through the rank correlation coefficients.

Suggested Citation

  • Sunggoan Choi, 2013. "Revealing the Growth Potentials with Input-Output Model at Sub-national Level," ERSA conference papers ersa13p73, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa13p73
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    References listed on IDEAS

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    1. Andrea Bonfiglio, 2009. "On The Parameterization Of Techniques For Representing Regional Economic Structures," Economic Systems Research, Taylor & Francis Journals, vol. 21(2), pages 115-127.
    2. Nijkamp, P. & Zwetsloot, F. & Wal, S. van der, 2008. "Regional gazelles and lions as creative creatures : a meta-multicriteria analysis of innovation and growth potentials of European regions," Serie Research Memoranda 0018, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    3. R. C. Jensen, 1980. "The Concept of Accuracy in Regional Input-Output Models," International Regional Science Review, , vol. 5(2), pages 139-154, August.
    4. 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.
    5. Erik Dietzenbacher & Ronald E. Miller, 2009. "Ras-Ing The Transactions Or The Coefficients: It Makes No Difference," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 555-566.
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