Key sector analysis for a subnational region with leakages
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Key sector analysis for a subnational region with leakages

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  • Journal Title:
    The Annals of Regional Science
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  • Description:
    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.
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  • Source:
    The Annals of Regional Science, 65(3), 619-644
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