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Assessing industry linkages using regional input-output tables

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  • Peter Midmore
  • Max Munday
  • Annette Roberts

Abstract

Midmore P., Munday M. and Roberts A. (2006) Assessing industry linkages using regional Input-Output tables, Regional Studies 40, 329-343. The regional policy literature has shown renewed interest in the promotion of industries with the potential to embed themselves into regional economies. Unfortunately, analysis of sectors within strategy-led documents often fails to tie the identification of key industries to any specific methodology. The paper demonstrates the use of several alternative methods of evaluating inter-industry linkages using Input-Output tables. In particular, and following the work of Dietzenbacher (1992), it uses financial information from Welsh Input-Output tables for 1995 to derive a measure giving specific insights into regional industry interdependency, and the presence of relatively self-contained groups of activity. This is the first time that this more complex measure has been applied to a regional transactions table in the UK, with the method shown to be of direct relevance to a smaller open economy. The results reveal differences in the rankings of key sectors compared with more conventional approaches. Conclusions discuss the importance of assessing industry interdependencies for the regional strategic planning process, and the problems associated with using Input-Output frameworks for such assessment. Midmore P., Munday M. and Roberts A. (2006) Assessing industry linkages using regional Input-Output tables, Regional Studies 40, 329-343. The regional policy literature has shown renewed interest in the promotion of industries with the potential to embed themselves into regional economies. Unfortunately, analysis of sectors within strategy-led documents often fails to tie the identification of key industries to any specific methodology. The paper demonstrates the use of several alternative methods of evaluating inter-industry linkages using Input-Output tables. In particular, and following the work of Dietzenbacher (1992), it uses financial information from Welsh Input-Output tables for 1995 to derive a measure giving specific insights into regional industry interdependency, and the presence of relatively self-contained groups of activity. This is the first time that this more complex measure has been applied to a regional transactions table in the UK, with the method shown to be of direct relevance to a smaller open economy. The results reveal differences in the rankings of key sectors compared with more conventional approaches. Conclusions discuss the importance of assessing industry interdependencies for the regional strategic planning process, and the problems associated with using Input-Output frameworks for such assessment. Echanges interindustriels, Analyse des secteurs cles, Tableaux d'echanges interindustriels, Vecteurs d'Eigen, Pays de Galles Midmore P., Munday M. and Roberts A. (2006) Assessing industry linkages using regional Input-Output tables, Regional Studies 40, 329-343. The regional policy literature has shown renewed interest in the promotion of industries with the potential to embed themselves into regional economies. Unfortunately, analysis of sectors within strategy-led documents often fails to tie the identification of key industries to any specific methodology. The paper demonstrates the use of several alternative methods of evaluating inter-industry linkages using Input-Output tables. In particular, and following the work of Dietzenbacher (1992), it uses financial information from Welsh Input-Output tables for 1995 to derive a measure giving specific insights into regional industry interdependency, and the presence of relatively self-contained groups of activity. This is the first time that this more complex measure has been applied to a regional transactions table in the UK, with the method shown to be of direct relevance to a smaller open economy. The results reveal differences in the rankings of key sectors compared with more conventional approaches. Conclusions discuss the importance of assessing industry interdependencies for the regional strategic planning process, and the problems associated with using Input-Output frameworks for such assessment. Industrieverknupfungen, Analyse von Hauptsektoren, Aufwand-Ertragstabellen, Eigenvektoren, Wales Midmore P., Munday M. and Roberts A. (2006) Assessing industry linkages using regional Input-Output tables, Regional Studies 40, 329-343. The regional policy literature has shown renewed interest in the promotion of industries with the potential to embed themselves into regional economies. Unfortunately, analysis of sectors within strategy-led documents often fails to tie the identification of key industries to any specific methodology. The paper demonstrates the use of several alternative methods of evaluating inter-industry linkages using Input-Output tables. In particular, and following the work of Dietzenbacher (1992), it uses financial information from Welsh Input-Output tables for 1995 to derive a measure giving specific insights into regional industry interdependency, and the presence of relatively self-contained groups of activity. This is the first time that this more complex measure has been applied to a regional transactions table in the UK, with the method shown to be of direct relevance to a smaller open economy. The results reveal differences in the rankings of key sectors compared with more conventional approaches. Conclusions discuss the importance of assessing industry interdependencies for the regional strategic planning process, and the problems associated with using Input-Output frameworks for such assessment. Vinculos industriales, Analisis de sectores clave, Tablas Input-Output, Eigenvectores, Gales

Suggested Citation

  • Peter Midmore & Max Munday & Annette Roberts, 2006. "Assessing industry linkages using regional input-output tables," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 329-343.
    • Handle: RePEc:taf:regstd:v:40:y:2006:i:3:p:329-343
    DOI: 10.1080/00343400600631673
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    1. Paul Bishop & Peter Gripaios, 2007. "Explaining Spatial Patterns of Industrial Diversity: An Analysis of Sub-regions in Great Britain," Urban Studies, Urban Studies Journal Limited, vol. 44(9), pages 1739-1757, August.
    2. Sowjanya Dhulipala & Gopal R. Patil, 2021. "Identification of freight generating industry complexes: A descriptive spatial analysis," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2680-2712, December.
    3. Sini Laari & Tomi Solakivi & Anu Bask & Juuso Töyli & Lauri Ojala, 2021. "Unravelling Mickey Mouse: The Effect of Supply Chain Position and Organisational Slack on the Uneven Balance of Sustainability Dimensions," Sustainability, MDPI, vol. 13(24), pages 1-16, December.
    4. Jane Bryan & Calvin Jones & Max Munday, 2005. "Investigating the Potential of Key Sectors Using Multisectoral Qualitative Analysis: A Welsh Case Study," Environment and Planning C, , vol. 23(5), pages 633-656, October.
    5. Sunggoan Choi, 2013. "Revealing the Growth Potentials with Input-Output Model at Sub-national Level," ERSA conference papers ersa13p73, European Regional Science Association.
    6. Titze, Mirko & Brachert, Matthias & Kubis, Alexander, 2008. "The Identification of Regional Industrial Clusters Using Qualitative Input-Output Analysis," IWH Discussion Papers 13/2008, Halle Institute for Economic Research (IWH).
    7. Yubin Huangfu & Haibo Yu & Zuoji Dong & Yingman Wang, 2024. "Research on the Risk Spillover among the Real Economy, Real Estate Market, and Financial System: Evidence from China," Land, MDPI, vol. 13(6), pages 1-26, June.
    8. Andrew Crawley & Max Munday, 2017. "Priority sectors in city regions? Some issues from a study of the Cardiff Capital Region," Local Economy, London South Bank University, vol. 32(6), pages 576-589, September.
    9. Malcolm Beynon & Calvin Jones & Max Munday, 2009. "The Embeddedness of Tourism-related Activity: A Regional Analysis of Sectoral Linkages," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2123-2141, September.
    10. Giannis Karagiannis & Vangelis Tzouvelekas, 2010. "Sectoral linkages and industrial efficiency: a dilemma or a requisition in identifying development priorities?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 207-233, August.
    11. Steven Deller & Philip Watson, 2016. "Did Regional Economic Diversity Influence The Effects Of The Great Recession?," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1824-1838, October.
    12. Morrissey, Karyn & O’Donoghue, Cathal, 2013. "The role of the marine sector in the Irish national economy: An input–output analysis," Marine Policy, Elsevier, vol. 37(C), pages 230-238.
    13. Libo Li & Wenbing Wu & Mingyu Zhang & Lu Lin, 2021. "Linkage Analysis between Finance and Environmental Protection Sectors in China: An Approach to Evaluating Green Finance," IJERPH, MDPI, vol. 18(5), pages 1-16, March.
    14. Flavio Lenz-Cesar & Almas Heshmati, 2010. "Agent-based Simulation of Cooperative Innovation," TEMEP Discussion Papers 201052, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2010.
    15. Heshmati, Almas & Lenz-Cesar, Flávio, 2013. "Determinants and Policy Simulation of Firms Cooperation in Innovation," IZA Discussion Papers 7487, Institute of Labor Economics (IZA).
    16. Liis LILL, 2008. "Assessing Economic Complexity in some OECD countries with Input-Output Based Measures," EcoMod2008 23800082, EcoMod.
    17. João C. Lopes & João Dias & João F. Amaral, 2012. "Assessing economic complexity as interindustry connectedness in nine OECD countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(6), pages 811-827, January.
    18. Henrique Morrone, 2018. "Which Sectors To Stimulate First In Brazil? Estimating The Sectoral Power To Pull The Economy Out Of The Recession," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 95, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    19. Kitsos, Anastasios & Grabner, Simone Maria & Incera, Andre Carrascal, 2022. "The role of embeddedness in regional economic resistance," SocArXiv b759j, Center for Open Science.
    20. Morrissey, Karyn & O'Donoghue, Cathal, 2011. "The Marine Economy and Regional Development," Working Papers 148923, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    21. Elvio Mattioli e Giuseppe Ricciardo Lamonica, 2012. "Degree of integration and activation power of tourism in the European countries� economies: an input-output analysis," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 66(2), pages 57-72.
    22. Mirko Titze & Matthias Brachert & Alexander Kubis, 2011. "The Identification of Regional Industrial Clusters Using Qualitative Input-Output Analysis (QIOA)," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 89-102.
    23. Bhoj Raj Khanal & Christopher Gan & Susanne Becken, 2014. "Tourism Inter-Industry Linkages in the Lao PDR Economy: An Input—Output Analysis," Tourism Economics, , vol. 20(1), pages 171-194, February.
    24. Chiara Battistoni & Carolina Giraldo Nohra & Silvia Barbero, 2019. "A Systemic Design Method to Approach Future Complex Scenarios and Research Towards Sustainability: A Holistic Diagnosis Tool," Sustainability, MDPI, vol. 11(16), pages 1-30, August.
    25. Morrissey, Karyn & O'Donoghue, Cathal, 2012. "The Potential for an Irish Maritime Transportation Cluster: An Input-Output Analysis," Working Papers 148836, National University of Ireland, Galway, Socio-Economic Marine Research Unit.

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