Authors
Konstatinos Mattas, Stratos Loizou, Vangelis Tzouvelekas, M Tsakiri, Andrea Bonfiglio
Publication date
2006
Journal
Rural Balkans and EU Integration: An Input-Output Approach. Milano
Pages
75-120
Description
First applications of the Leontief Input-Output (IO) model concerned national economies, which sought via the IO model an analytical tool to present an economy in detail and to study the impacts of various development and structural measures of economic policy. Indeed the input-output model can appear particularly useful in the configuration of suitable plans for economic growth as well as in the choice of suitable measures for the structural intervention in an economy's intersectoral relationships. However, on the other hand, the effectiveness of the model is limited considerably if a national model is used for the configuration of development or structural policies at regional level. As Miller and Blair (1985) stressed, this is due to two basic reasons. The economic activity, as is reflected in the national input-output tables, constitutes a medium approximation of intersectoral relationships in the individual regional economies. It is reasonable to assume that the productive activity of the same sectors is differentiated considerably between different regions. Factors, such as the availability of raw material and the geographic position of a region, alter the structure, the productive process and consequently the economic transactions among the sectors of the model. Moreover, apart from the differences in the relationships among sectors of a regional economy that cause differences in terms of productive structure of sectors among regions, important changes also create the supply of their final products.
Total citations
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Scholar articles
K Mattas, S Loizou, V Tzouvelekas, M Tsakiri… - Rural Balkans and EU Integration: An Input-Output …, 2006