This document discusses intraregional and interregional relations and input-output analysis. It covers input-output tables, agro-clusters in the Netherlands and how they are defined using value added from agriculture and agribusiness sectors. Interregional input-output models are discussed along with how they can be used to calculate regional multipliers. Methods for deriving regional input-output tables from national tables using location quotients are also presented. The document concludes by providing an application example of analyzing tourism in Slovenia.

1. Space and Economics Chapter 8: Intraregional and interregional relations NTRREGIONAL AND INTERREGIONAL RELATIONS Author Wim Heijman (Wageningen, the Netherlands) August 28, 2009

2. 8. Intraregional and interregional relations 8.1 Input output table 8.2 Agro-clusters 8.3 Interregional input output analysis 8.4 Indirect effects 8.5 deriving regional input output tables from national input output tables 8.6 Application: Tourism in Slovenia

3. 8.1 Input output table - Intra-sector deliverances - Inter-sector deliverances - Final demand = Final regional demand + Exports - Total output = Turnover - Value added = Total Output ­ Total Input

4. 8.2 Agro-clusters

5. 8.2 Agro-clusters Value added Frisian agro-cluster: Value added agriculture + Value added agribusiness: Value added Frisian agriculture: € 621 mln Agri-inputs Remaining Sectors (RS) in Friesland: 574 + 318 + 175 = € 1067 mln Share agri-inputs in total inputs of RS: (1067/6649) x 100% = 16.05% 16.05% of Value added RS equals: 0.1605 x 7598 = € 1219.48 mln Value added agro-cluster: 621 + 1219.48 = € 1840.48 mln Share in total value added: (1840.48/8219) x 100% = 22.4%.

6. 8.2 Agro-clusters

7. 8.2 Agro-clusters Figure 8.2: Relationship between value added Agriculture and value added agribusiness for Dutch provinces in 1992.

8. 8.2 Agro-clusters LQ = Sectoral share region / Sectoral share country Figure 8.3: Location quotients for agriculture, agribusiness and agro-cluster for 12 Dutch provinces in 1992

9. 8.3 Interregional input output analysis Figure 8.4: Regions Drenthe, Greater Amsterdam, Greater Rijnmond (Rotterdam), and Achterhoek in the Netherlands. http://www.cbs.nl/NR/rdonlyres/F40C0A58-7E1E-4BD5-93B3-F050153117B3/0/2006cr.pdf

10. 8.3 Interregional input output analysis

11. 8.3 Interregional model input output analysis

12. 8.3 Interregional input output analysis

13. 8.3 Interregional input output analysis Leontief Equation!

14. 8.3 Interregional input output analysis Wassily Leontief (1905-1999).

15. 8.3 Interregional input output analysis Multiplier (M): Effect / Impulse In the case of Drenthe:

16. 8.3 Interregional input output analysis

17. 8.3 Interregional input output analysis Figure 8.5: Regional multipliers for the twelve Dutch provinces.

18. 8.4 Indirect effects

19. 8.4 Indirect effects

20. 8.5 Deriving regional input output tables from national input output tables

21. 8.5 Deriving regional input output tables from national input output tables

22. 8.5 Deriving regional input output tables from national input output tables

23. 8.5 Deriving regional input output tables from national input output tables

24. 8.5 Deriving regional input output tables from national input output tables LQ>1: The sector is clearly localized in the region; the regional input output coefficient is supposed to be equal to the national input output coefficient. LQ< 1: The sector is not localised in the region; the regional technical coefficient is computed by multiplying the national technical coefficient by the appropriate Location Quotient. So:

25. 8.5 Deriving regional input output tables from national input output tables

26. 8.5 Deriving regional input output tables from national input output tables

27. 8.6 Tourism in Slovenia

28. 8.6 Tourism in Slovenia

29. 8.6 Tourism in Slovenia

30. 8.6 Tourism in Slovenia