IDEAS home Printed from https://ideas.repec.org/a/rjr/romjef/vy2010i2p176-187.html
   My bibliography  Save this article

Using the Leontief Matrix to Estimate the Impact of Investments upon the Global Output

Author

Listed:
  • Dobrescu, Emilian

    (National Institute for Economic Research, Center for Macroeconomic Modeling, Member of the Romanian Academy, Bucharest)

  • Gaftea, Viorel

    (EDATA SRL, Bucharest)

  • Scutaru, Cornelia

Abstract

The study presents in the first chapter the applied methodology and the data used for the empirical research. The economic activities were grouped into 10 sectors by aggregating the extended input-output tables for Romania (with 105 branches). The chosen reference year is 2007 - the last year for which such statistical recordings were available. The second chapter examines some of the Romanian economy’s structural features revealed by the matrices A and (I-A)-1, insisting on the driving effects of interdependencies (direct and indirect) generated by cross-sector productive flows. The third chapter focuses on the impact of gross fixed capital formation (GFCF) upon the output. On the one hand, the implications of changes in volume are estimated (for example, data on 2007 are recalculated for a variation of +/-5% in the GFCF). On the other hand, the influence of the sectoral structure of the indicator in question is quantified with the help of three different macroeconomic simulations. Further possible developments of the current investigation are discussed at the end of the paper.

Suggested Citation

  • Dobrescu, Emilian & Gaftea, Viorel & Scutaru, Cornelia, 2010. "Using the Leontief Matrix to Estimate the Impact of Investments upon the Global Output," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 176-187, July.
    • Handle: RePEc:rjr:romjef:v::y:2010:i:2:p:176-187
    as

    Download full text from publisher

    File URL: http://www.ipe.ro/rjef/rjef2_10/rjef2_10_11.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Breusch, T S, 1978. "Testing for Autocorrelation in Dynamic Linear Models," Australian Economic Papers, Wiley Blackwell, vol. 17(31), pages 334-355, December.
    2. Harris, David, 1997. "Principal Components Analysis of Cointegrated Time Series," Econometric Theory, Cambridge University Press, vol. 13(4), pages 529-557, February.
    3. Massimiliano Marcellino & Carlo A. Favero & Francesca Neglia, 2005. "Principal components at work: the empirical analysis of monetary policy with large data sets," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(5), pages 603-620.
    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. Emilian Dobrescu, 2013. "Restatement of the I-O Coefficient Stability Problem," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-67, December.
    2. Gaftea, Viorel, 2013. "The Input-Output Modeling Approach to the National Economy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 211-222, June.
    3. Mihail Busu & Madalina Vanesa Vargas & Sorin Anagnoste, 2023. "Navigating the Intricate Relationship between Investments and Global Output: A Leontief Matrix Case Study of Romania," JRFM, MDPI, vol. 16(12), pages 1-21, December.
    4. ELALAOUI, Aicha & EZZAHIDI, Elhadj & TOUNSI, Said & NIHOO, Abdelazziz, 2011. "Key sectors in the Moroccan economy: an application of input-output analysis," MPRA Paper 56822, University Library of Munich, Germany, revised 2012.
    5. Dobrescu, Emilian, 2013. "Modelling the Sectoral Structure of the Final Output," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 59-89, October.
    6. Tounsi, Said & Ezzahid, El hadj & Alaoui, Aicha El & Nihou, Abdelaziz, 2013. "Key sectors in the Moroccan economy: An application of input-output analysis," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-19.
    7. Emilian Dobrescu & Viorel Gaftea, 2012. "On the Accuracy of RAS Method in an Emergent Economy," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(32), pages 502-521, June.
    8. Scutaru, Cornelia & Fomin, Petre & Stanica, Cristian, 2010. "Prospects for the Evolution of the Economic Sectors’ Behavior," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(5), pages 120-142.

    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. Festic, Mejra & Repina, Sebastijan & Volcjak, Robert, 2010. "Estimating Coal Price Dynamics with the Principal Components Method," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 188-212, July.
    2. Zia-Ur- Rahman, 2019. "Influence of Excessive Expenditure of the Government in Perspective of Interest Rate and Money Circulation Which in Turn Affects the Growing Process in Pakistan," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 6(2), pages 120-129.
    3. repec:wyi:journl:002087 is not listed on IDEAS
    4. Eckhard Hein & Christian Schoder, 2011. "Interest rates, distribution and capital accumulation -- A post-Kaleckian perspective on the US and Germany," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(6), pages 693-723, November.
    5. Marc Lavoie & Gabriel Rodriguez & Mario Seccareccia, 2004. "Similitudes and Discrepancies in Post-Keynesian and Marxist Theories of Investment: A Theoretical and Empirical Investigation," International Review of Applied Economics, Taylor & Francis Journals, vol. 18(2), pages 127-149.
    6. Colin C. Williams & Ioana Alexandra Horodnic, 2017. "Tackling Bogus Self-Employment: Some Lessons From Romania," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(02), pages 1-20, June.
    7. W. S. Navin Perera, 2018. "An Analysis of the Behaviour of Prime Lending Rates in Sri Lanka," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(2), pages 121-138.
    8. Branstetter, Lee & Chatterjee, Chirantan & Higgins, Matthew J., 2022. "Generic competition and the incentives for early-stage pharmaceutical innovation," Research Policy, Elsevier, vol. 51(10).
    9. Matthias Hartmann & Helmut Herwartz & Yabibal M. Walle, 2012. "Where enterprise leads, finance follows. In-sample and out-of-sample evidence on the causal relation between finance and growth," Economics Bulletin, AccessEcon, vol. 32(1), pages 871-882.
    10. Checo, Ariadne & Mejía, Mariam & Ramírez, Francisco A., 2017. "El rol de los regímenes de precipitaciones sobre la dinámica de precios y actividad del sector agropecuario de la República Dominicana durante el período 2000-2016 [The role of rainfall regimes on ," MPRA Paper 80301, University Library of Munich, Germany.
    11. repec:hum:wpaper:sfb649dp2007-042 is not listed on IDEAS
    12. Guowei Cui & Vasilis Sarafidis & Takashi Yamagata, 2020. "IV Estimation of Spatial Dynamic Panels with Interactive Effects: Large Sample Theory and an Application on Bank Attitude," Monash Econometrics and Business Statistics Working Papers 11/20, Monash University, Department of Econometrics and Business Statistics.
    13. Kwabena Asomanin Anaman, Samuel Ampomah, Joseph Manzvera, 2024. "Determinants of the Share of the Economy Contributed by the Forestry Industry in Ghana from 1975 to 2023," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 5(4), September.
    14. McGuirk, Anya M. & Spanos, Aris, 2004. "Revisiting Error Autocorrelation Correction: Common Factor Restrictions And Granger Causality," 2004 Annual meeting, August 1-4, Denver, CO 20176, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Schneider, Andreas, 2019. "Deterrence Theory in Paraguay: Exploring Fraud and Violation of Trust Cases," MPRA Paper 102204, University Library of Munich, Germany.
    16. MAÏ ASSAN CHEDI, Maman, 2022. "Does Defence Expenditure Affect Education and Health expenditures in Saharan Africa?," African Journal of Economic Review, African Journal of Economic Review, vol. 10(4), September.
    17. de Meulemeester, Jean-Luc & Rochat, Denis, 1995. "A causality analysis of the link between higher education and economic development," Economics of Education Review, Elsevier, vol. 14(4), pages 351-361, December.
    18. Raja Ben Hajria & Salah Khardani & Hamdi Raïssi, 2017. "Testing the lag length of vector autoregressive models: A power comparison between portmanteau and Lagrange multiplier tests," Working Papers 2017-03, Escuela de Negocios y Economía, Pontificia Universidad Católica de Valparaíso.
    19. Dragos Stefan Oprea & Elena Valentina Tilica, 2014. "Day-of-the-Week Effect in Post-Communist East European Stock Markets," 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. 4(3), pages 119-129, July.
    20. Mirzaei Abbasabadi, Hamed & Soleimani, Mohammad, 2021. "Examining the effects of digital technology expansion on Unemployment: A cross-sectional investigation," Technology in Society, Elsevier, vol. 64(C).
    21. Art Durnev & Amrita Nain, "undated". "The Unanticipated Effects of Insider Trading Regulation," American Law & Economics Association Annual Meetings 1023, American Law & Economics Association.
    22. Ahmed Ali & Granberg Mark & Troster Victor & Uddin Gazi Salah, 2022. "Asymmetric dynamics between uncertainty and unemployment flows in the United States," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 26(1), pages 155-172, February.

    More about this item

    Keywords

    input-output analysis; multipliers; macroeconomic simulations;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

    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:rjr:romjef:v::y:2010:i:2:p:176-187. 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: Corina Saman (email available below). General contact details of provider: https://edirc.repec.org/data/ipacaro.html .

    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.