Propagation of Sector-Specific Shocks within Spain and Other Countries

Abstract

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Regional Economic Impact of COVID-19: The Role of Sectoral Structure and Trade Linkages

“…Indeed, regional supply chains represent a powerful channel of propagation of the crisis, through international trade as well as interconnections within each country, as can be shown by means of so called output multipliers computed using again the RIO tables from Thissen et al (2019). Output multipliers inform about the aggregate increase in gross output (measured in euros) per euro of additional output in a specific region (see, e.g., Izquierdo, Moral-Benito, and Prades, 2019). These multipliers can be distinguished into downstream propagation (i.e.…”

“…Multipliers are computed using the Leontief matrix B = (I −A) −1 , where A is the matrix of input requirements (seeIzquierdo et al, 2019). We treat the EU (plus the RoW component) as one large economy and generate B as a 268 × 268 matrix, where each element refers to a region in the EU and the RoW residual.…”

Los efectos económicos del COVID-19: la heterogeneidad sectorial y regional

“…Estas correlaciones indican que allí donde mayor fue el impacto sectorial, mayor fue el impacto idiosincrático, lo que es consistente con la hipótesis de que los sectores más afectados por la crisis en las regiones más dependientes de ellos han podido tener un efecto arrastre sobre el resto de sectores productivos. Aunque sectores como la restauración o el alojamiento no son los que más efectos arrastre generan por unidad de valor añadido (véase Izquierdo et al, 2019), dicha característica ha podido verse más que compensada por su mayor caída.…”