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The Leontief Model in Research into the Economic Importance of Small Seaports: A Case Study

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  • Piotr Nowaczyk

Abstract

Purpose: The article defines the economic importance of the seaport of Kołobrzeg, a local port located in the western part of the Polish Baltic coast. The study has distinguished three effects, direct, indirect, and induced, which constitute a full spectrum of the seaport's impact. The effects were discussed in terms of the output, the gross wages, and the employment figure. The subject matter discussed in the article is an introduction to a more extensive study, which is to be conducted on a representative group of local seaports. Design/Methodology/Approach: The port's significance in Kołobrzeg was determined using the Leontief model. The scope of the economic impact of the port was related to the Koszaliński subregion, a territorial unit at the NUTS 3 level. Regionalization of the national input-output table was performed using the Flegg Location Quotient (FLQ). The study was based on available statistical data, information obtained from the Main Statistical Office (GUS), and survey results. Findings: The importance of the port of Kołobrzeg is determined by the multiplier value, which is lower than in previous studies due to the reference area being narrowed down, and by the use of the FLQ formula reducing the self-supplying ability of the Koszalin subregion. The induced and direct effects had the most significant impact on the economy of the subregion, with the indirect effect being of a minor significance. Practical Implications: The study provides the decision-makers with information on the scope of impact and the economic significance of the Kołobrzeg port. They allow for a concentration of investment funds in the areas with the most significant impact on the local economy. Originality/Value: In foreign literature, the are no studies on the importance of a seaport following the format: local port – regionalization of the national table using the FLQ – reference area below the NUTS 2 level. In the case of Polish seaports, no author has comprehensively determined their economic importance.

Suggested Citation

  • Piotr Nowaczyk, 2021. "The Leontief Model in Research into the Economic Importance of Small Seaports: A Case Study," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 419-438.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:special3:p:419-438
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    More about this item

    Keywords

    Seaport; local and regional development; Leontief model; input-output flows; location quotients.;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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