Skip to main content
placeholder image

Regional economic modelling through an embedded econometric-interindustry framework

Journal Article


Abstract


  • After the incorporation of an inter-industry analysis into an econometric framework was pioneered 40 years ago, there has been a growing number of studies in the literature focused on applying such an integrated framework at the subnational level. Models in the literature apply different strategies and structures to merge input–output (IO) and econometric models. The objective of the merged framework is to capitalize on the merits of both IO and time-series models. This paper presents an attempt to apply an intersectoral demand variable (ISDV) technique to embed IO analysis into a time-series model to investigate the economy of Illawarra in New South Wales, Australia. The result is a dynamic intersectoral model that provides high accuracy in forecasting sectoral employment.

Publication Date


  • 2018

Citation


  • Masouman, A. & Harvie, C. (2018). Regional economic modelling through an embedded econometric-interindustry framework. Regional Studies, 52 (9), 1237-1249.

Scopus Eid


  • 2-s2.0-85028877468

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1278

Number Of Pages


  • 12

Start Page


  • 1237

End Page


  • 1249

Volume


  • 52

Issue


  • 9

Place Of Publication


  • United Kingdom

Abstract


  • After the incorporation of an inter-industry analysis into an econometric framework was pioneered 40 years ago, there has been a growing number of studies in the literature focused on applying such an integrated framework at the subnational level. Models in the literature apply different strategies and structures to merge input–output (IO) and econometric models. The objective of the merged framework is to capitalize on the merits of both IO and time-series models. This paper presents an attempt to apply an intersectoral demand variable (ISDV) technique to embed IO analysis into a time-series model to investigate the economy of Illawarra in New South Wales, Australia. The result is a dynamic intersectoral model that provides high accuracy in forecasting sectoral employment.

Publication Date


  • 2018

Citation


  • Masouman, A. & Harvie, C. (2018). Regional economic modelling through an embedded econometric-interindustry framework. Regional Studies, 52 (9), 1237-1249.

Scopus Eid


  • 2-s2.0-85028877468

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1278

Number Of Pages


  • 12

Start Page


  • 1237

End Page


  • 1249

Volume


  • 52

Issue


  • 9

Place Of Publication


  • United Kingdom