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Extended input–output model for urbanization: an empirical test using Chinese data

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  • Nobuhiro Okamoto

    (Daito Bunka University)

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 of the input–output literature. Previous researchers have made significant contributions in developing the economic–demographic modeling from the unemployment perspective, in the context of shrinking regional economies. This study aims to develop an extended input–output model for urbanization, based on the Batey–Madden model by incorporating the “urbanization process”. This process is associated with one of the facets of demographic change and has received little attention in the literature. The effectiveness of the model is theoretically explored and empirically tested using Chinese data, which show rapid progress of urbanization in China. The study proposes a new “urbanization multiplier”, which implies intense population concentration in cities based on an employment multiplier in urban areas and labor allocation possibilities between urban and rural areas. The result from a preliminary application shows that the economic structure can determine the urbanization multiplier, indicating that the extent of employment opportunities promotes urbanization and the size of the population attracts more workers from rural areas. The model provides a fresh aspect of urbanization in the existing literature.

Suggested Citation

  • Nobuhiro Okamoto, 2021. "Extended input–output model for urbanization: an empirical test using Chinese data," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-24, December.
    • Handle: RePEc:spr:jecstr:v:10:y:2021:i:1:d:10.1186_s40008-021-00233-9
    DOI: 10.1186/s40008-021-00233-9
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    References listed on IDEAS

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    1. Peter Batey & Moss Madden, 1999. "The employment impact of demographic change: A regional analysis," Papers in Regional Science, Springer;Regional Science Association International, vol. 78(1), pages 69-87.
    2. Ala-Mantila, Sanna & Heinonen, Jukka & Junnila, Seppo, 2014. "Relationship between urbanization, direct and indirect greenhouse gas emissions, and expenditures: A multivariate analysis," Ecological Economics, Elsevier, vol. 104(C), pages 129-139.
    3. Shuntaro Shishido & Makoto Nobukuni & Kazumi Kawamura & Takahiro Akita & Shunichi Furukawa, 2000. "An International Comparison of Leontief Input-Output Coefficients and its Application to Structural Growth Patterns," Economic Systems Research, Taylor & Francis Journals, vol. 12(1), pages 45-64.
    4. M. Madden & P. W. J. Batey, 1980. "Achieving Consistency In Demographic‐Economic Forecasting," Papers in Regional Science, Wiley Blackwell, vol. 44(1), pages 91-106, January.
    5. M Hynes & R W Jackson, 1988. "Demographics in Demographic—Economic Models: A Note on the Basic Activity—Commodity Framework," Environment and Planning A, , vol. 20(11), pages 1531-1536, November.
    6. Nobuhiro Okamoto, 2017. "What Matters in the Urbanisation of China?," The Northeast Asian Economic Review, ERINA - Economic Research Institute for Northeast Asia, vol. 5(2), pages 1-13, October.
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    Cited by:

    1. A. O. Baranov & A. V. Goreev, 2022. "Analysis of the Multiplier Effects Produced by Investment in a Dynamic Input–Output Model," Studies on Russian Economic Development, Springer, vol. 33(6), pages 687-696, December.

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