An Analysis of Internal and External Linkages of Manufacturing and Non-manufacturing Industries: Application to Chinese Metropolitan Economies

Abstract

In this chapter, the methodology developed for multi-regional economic systems analysis by Miyazawa (1966Miyazawa ( , 1971 and extended by Sonis and Hewings (1993), is directed to an examination of the interdependencies between industry groups within one region rather than the interdependencies between regions. The interactions between some a priori defined strategic industry groups can be revealed by drawing on Miyazawa's concepts of internal and external multipliers and Sonis and Hewings ' (1993) extension to the synergetic interactions of regional sub-systems (see also chapter 2 in this volume). In this way, the dependencies and interdependencies between groups of sectors of an economy can be revealed.The primary focus in this chapter is on measures of intersectorallinkages within and between two different economic production groups, manufacturing and nonmanufacturing, and the impact of external components of final demand on output through these linkages. The structural differences derived from internal and .external multiplier analysis in connection with the two strategic industry group decomposition are revealed, and the impacts of other regions' (as well as other countries') influence, through regional trade (import and export), on the particular region's economic structure and development are identified. This accomplished, it is then possible to link the patterns of regional trade and the identified economic structures to reveal 1) the internal and external linkages of a region's economy; 2) the relative contributions of domestic and foreign demand to growth and structural change of manufacturing and non-manufacturing sectors; and 3) the importance of a region's external economic relationships to its overall economic performance. The results of the empirical analysis, using selected Chinese regional input-output tables, illustrate the new method and the insights that contribute to a comparative analysis of regional economic structure.

Intersectoral Linkages and Key Sectors in China, 1987–1997

“…This is the case for earlier studies (Bhalla and Ma, 1990;Heimler, 1991;Sun, 1998) and also for more recently published works, such as that by . The study by Guo et al (1999) is a notable exception to this trend. The contributions by Guo et al (1999) and by are based on a multiplier product matrix (MPM) and its connected economic landscape enabling the visualization of the relevant economic structure.…”

“…The study by Guo et al (1999) is a notable exception to this trend. The contributions by Guo et al (1999) and by are based on a multiplier product matrix (MPM) and its connected economic landscape enabling the visualization of the relevant economic structure. Another common thread between the two studies is that they both use a rather aggregated classification of industries into 18 sectors.…”