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Key sector analysis for a subnational region with leakages

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  • Chang K. Seung

    (NOAA, National Marine Fisheries Service)

Abstract

Key sector analyses have a long and rich history. However, almost all the previous analyses were conducted only within an input–output (IO) framework for a national economy. The present study (1) performs the analysis for a subnational (or regional) economy suffering severe leakages of industries’ revenues due to a large amount of imports and a large fraction of factor income earned by non-residents, and (2) extends the previous IO-based analyses to an analysis within a social accounting matrix (SAM) model and, further, to a multi-regional SAM (MRSAM) model. Comparing the results from the three alternative models shows that the key sectors identified with the alternative models are considerably different. This finding points to the necessity of using SAM-based models for an accurate key sector analysis and offers valuable implications for regional policymakers whose main interest is identifying the industries that they target for the economic development of their regions.

Suggested Citation

  • Chang K. Seung, 2020. "Key sector analysis for a subnational region with leakages," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 619-644, December.
    • Handle: RePEc:spr:anresc:v:65:y:2020:i:3:d:10.1007_s00168-020-00997-1
    DOI: 10.1007/s00168-020-00997-1
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    References listed on IDEAS

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    1. M. Alejandro Cardenete & Ferran Sancho, 2006. "Missing links in key sector analysis," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 319-325.
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    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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