This chapter explores trade in goods, services and people and the role this plays in regenerating economies. The argument is based on the belief that there is a real need to combine both macro and micro perspectives. This approach explores the networks of interactions between diverse agencies within regions and the necessity of placing a regional economy in a broader context by considering external linkages. The discussion in this chapter has highlighted two main challenges facing regional economies – trade in goods and services and trade in people. These challenges have become ever more complex but what academia can do is contribute to enhanced understanding of how an economy works, how it is changing, how future demands for its goods and services will evolve, the needs in terms of investment in human capital, in housing, in infrastructure and in the capacity to adapt to change.
Geoffrey J.D. Hewings
Geoffrey J.D. Hewings and Jan Oosterhaven
Lee J. Alston and Geoffrey J.D. Hewings
Michael Sonis, Geoffrey J.D. Hewings and Dong Guo
Edited by Frank Giarratani, Geoffrey J.D. Hewings and Philip McCann
Jan Oosterhaven, Karen R. Polenske and Geoffrey J.D. Hewings
This chapter presents the Type I, II and III demand-driven regional and interregional input–output (IO) models and their microeconomic foundations. It discusses why realistic multipliers probably lay somewhere halfway between the Type I and Type II multipliers and how they can be used in impact analyses. It continues with the presentation of the dual IO price model and how it can be used for cost-push wage/price inflation analysis. The theoretical part of the chapter ends with the micro foundation of the entirely implausible supply-driven IO model in which cars may drive without gas and factories may work without labour. Its dual price model is argued to be less implausible and suited for demand-pull price/wage inflation analysis. The second part of the chapter presents an overview of the development of IO data construction methods and commercial IO-based models used for regional and interregional impact analysis, especially in the USA.