Unexpected Natural Disasters and Regional Economies: CGE Analysis Based on Inter-regional Input–Output Tables in Japan

Public–private partnership (PPP), an innovative mode of infrastructure investment, has been widely applied in China and has become an essential policy tool with which to promote sustainable economic development. In order to comprehensively evaluate the economic consequences, using 31 provinces in China from 2003 to 2018 as samples, first, stochastic frontier analysis was performed to measure the input–output efficiency of infrastructure investment to evaluate the economic sustainability and efficiency of PPP compared to single government-led investment mode. Next, the overall economic growth effect of PPP was verified. Further, from the perspective of sustainable development of regional economies, the double-fixed effect spatial Durbin model was adopted to empirically test the spatial spillover effect of PPP and clarify its industrial heterogeneity. The results show the following. (1) The average input–output efficiency of infrastructure is 0.449, revealing a distribution law of decreasing from east to west and remarkable regional variation. However, a good trend of improvement emerged, reflecting the economic sustainability of infrastructure investment, and PPP has played a positive role in promoting it. (2) PPP has significant and positive economic growth and spatial spillover effects, which can promote regional economic integration, embodying its economic sustainability function. (3) The economic impact of PPP has significant industrial heterogeneity. Transportation PPP can bring greater economic benefits, confirming the vital position of transportation infrastructure in the sustainable development of regional economies. Energy and water PPPs have positive externalities. All of this provides powerful and reliable proof of the realization of sustainable economic development under the regional virtuous circle driven by infrastructure investment through PPP.

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Recuperation of economy after volcanic eruption in Mt. Merapi, Indonesia: a multiregional input-output analysis

10.21203/rs.3.rs-29358/v1 ◽

2020 ◽

Author(s):

Heni Subiyanti ◽

Moinul Islam ◽

Masaru Ichihashi

Keyword(s):

Natural Disasters ◽

Volcanic Eruption ◽

State Level ◽

Economic Effects ◽

Input Output ◽

Output Analysis ◽

Services Sector ◽

Forestry Sector ◽

Level Data ◽

Fiscal Support

Abstract Indonesia is in one of the disaster-prone points, the ring of fire, which frequently suffer from natural disasters. Mt. Merapi volcanic eruption in 2010 was one of the catastrophic natural disasters, which caused the approximate economic damages of 3,628 trillion Indonesian rupiah. To recover the loss of different sectors of the economy, the central and regional governments allocates special budget for recovery and reconstruction. We assess the induced economic effects of Mt. Merapi eruption recovery fiscal support by using a multiregional input-output (MRIO) model. We utilize the state level data of the 2005 Indonesian interregional input-output table (IRIO) and the 2011–2013 volcano eruption restoration. Our results indicate that the effect of 2010 recovery budget for Mt. Merapi eruption contributed to the economy of the hazard-affected Yogyakarta Special Region. In addition, the forestry sector, other services sector, and construction sectors have a significantly benefited from the induced output by fiscal support.

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Simulating Impacts on Regional Economies

Econometric Methods for Analyzing Economic Development - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-4666-4329-1.ch009 ◽

2013 ◽

pp. 132-152 ◽

Cited By ~ 1

Author(s):

Guy R. West ◽

Randall W. Jackson

Keyword(s):

General Equilibrium ◽

Computable General Equilibrium ◽

Full Range ◽

Data Availability ◽

Regional Economies ◽

Input Output ◽

Computable General Equilibrium Models ◽

Sire Model ◽

Cge Models ◽

Regional Impacts

Practitioners and academics apply a range of regional economic models for impacts assessment. These models extend from a simple economic base through to input-output and econometric models and computable general equilibrium models. All such models have strengths and weaknesses. Dimensions of which impact assessment models are often compared include level of industry detail, data availability, and complexity of behaviour modelled. This chapter presents a model for Simulating Impacts on Regional Economies (SIRE) that occupies an intermediate position between Input-Output (IO), arguably the most widely used model for regional impacts assessments, and Computable General Equilibrium (CGE) models. With greater behavioural detail than the typical regional IO model, the SIRE model incorporates many of the features of CGE models without enforcing the strictly linear behavioural relationships of IO. Like most CGE models, the simulation framework presented here borrows a subset of parameters from an existing econometric model for the same region. The SIRE model falls short, however, of the complexity of capturing the full range of behaviours of CGE models.

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Simulating Impacts on Regional Economies

Hospitality, Travel, and Tourism ◽

10.4018/978-1-4666-6543-9.ch060 ◽

2014 ◽

pp. 1064-1083

Author(s):

Guy R. West ◽

Randall W. Jackson

Keyword(s):

General Equilibrium ◽

Computable General Equilibrium ◽

Full Range ◽

Data Availability ◽

Regional Economies ◽

Input Output ◽

Computable General Equilibrium Models ◽

Sire Model ◽

Cge Models ◽

Regional Impacts

Practitioners and academics apply a range of regional economic models for impacts assessment. These models extend from a simple economic base through to input-output and econometric models and computable general equilibrium models. All such models have strengths and weaknesses. Dimensions of which impact assessment models are often compared include level of industry detail, data availability, and complexity of behaviour modelled. This chapter presents a model for Simulating Impacts on Regional Economies (SIRE) that occupies an intermediate position between Input-Output (IO), arguably the most widely used model for regional impacts assessments, and Computable General Equilibrium (CGE) models. With greater behavioural detail than the typical regional IO model, the SIRE model incorporates many of the features of CGE models without enforcing the strictly linear behavioural relationships of IO. Like most CGE models, the simulation framework presented here borrows a subset of parameters from an existing econometric model for the same region. The SIRE model falls short, however, of the complexity of capturing the full range of behaviours of CGE models.

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Developing Regional Input-Output Models from the U.N. Format Adopted by the U.S. in the New 1972 Input-Output Model

Journal of Agricultural and Applied Economics ◽

10.1017/s0081305200015399 ◽

1980 ◽

Vol 12 (1) ◽

pp. 143-149 ◽

Cited By ~ 5

Author(s):

Dennis DiPietre ◽

Rodney L. Walker ◽

David R. Martella

Keyword(s):

Regional Growth ◽

National Level ◽

National Policy ◽

Decision Makers ◽

Specific Information ◽

Regional Economies ◽

Input Output ◽

The People ◽

Local Decision ◽

Local Decision Makers

Since the mid-1940s, interest in the interrelationships of subnational economies has been growing. Part of this interest flows from a realization of the need to manage regional growth and mitigate the effects of economically unstable components of regional economies on the welfare of the people within the region. Aggregated macroeconomic models applied at the national level commonly provide insufficient information about their components, the regional economies. This lack has led to the development of state and regional macro models which can provide specific information relevant to state or local decision makers. Such information includes the availability of regional resources necessary to support and expand regional production and the impacts of changes in demand on the welfare of local inhabitants. These models are also useful in estimating the impacts of national policy on regional economies. The development of regional input-output models is an example of the trend toward fuller understanding of regional economies. State or regional input-output models can be constructed either by survey or by estimation from the national input-output model. Time and money constraints have increased the popularity of the latter approach among regional economists.

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Extended Input–Output Model for Urbanization An Empirical Test Using Chinese Data

10.21203/rs.3.rs-16444/v1 ◽

2020 ◽

Author(s):

Nobuhiro Okamoto

Keyword(s):

Rural Areas ◽

Urban Areas ◽

Empirical Test ◽

Regional Economies ◽

Input Output ◽

Demographic Modeling ◽

Employment Multiplier ◽

Population Concentration ◽

Wide Range ◽

Urban And Rural Areas

Abstract Although the input–output model has been widely used for both pure economic analysis and environmental issues, demographic analysis has been relegated to the periphery in the input–output literature. Since the 1980s, Batey and his various co-researchers have made a significant contribution to the progress of economic–demographic modeling from the perspective of unemployment in the context of shrinking regional economies. This study focuses on another demographic aspect of the urbanization process by developing an extended input–output model for urbanization, using the so-called Batey–Madden model, which focuses on incorporating labor accounts with the input–output model. The study proposes a new “urbanization multiplier,” which implies strong population concentration in cities based on an employment multiplier in urban areas and labor allocation possibilities between urban and rural areas. According to a preliminary application to Chinese urbanization, economic structure can be said to determine the urbanization multiplier, indicating the extent of employment opportunities created in urban areas, and the size of the population attracted from rural areas. Furthermore, the study considers a wide range of possible applications of the input–output table in terms of urbanization.

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