Abstract
The focus of this paper is an empirical examination of the importance of an industry in terms of its contribution to regional employment. It uses a closed input-output model. Four alternative measures of importance are presented and explored in the framework of a 58-industry input-output model of the Australian State of Tasmania. The four measures are compared to each other, to direct employment and to a multiplier-based rule-of-thumb. Our preferred measure is one which takes into account both direct effects and the strength of backward linkages. The rule-of-thumb is found to be highly correlated to this measure.
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References
Edwards GC, Wallace MJ, Griffiths LF, Miller CS, Cockerill RJ (1981) A 1977–1978 based input-output model of the Tasmanian economy. Centre for Regional Economic Analysis, University of Tasmania
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We are grateful to an anonymous referee for useful comments. A longer version of this paper including a detailed discussion of the computation procedures is available from the authors on request.
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Groenewold, N., Hagger, A.J. & Madden, J.R. Measuring industry importance: an Australian application. Ann Reg Sci 27, 175–182 (1993). https://doi.org/10.1007/BF01581945
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DOI: https://doi.org/10.1007/BF01581945