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Region: Economics and Sociology

2023 year, number 1

INPUT-OUTPUT ANALYSIS OF REGIONAL ECONOMY WITH THE MIYAZAWA MODEL

Z.B.-D. Dondokov, D.B. Dugarzhapova, E.Yu. Piskunov
Buryat Science Center, Siberian Branch of the Russian Academy of Sciences, Ulan-Ude, Russia
Keywords: Miyazawa model, region, input-output table, household consumption, differentiation of population by income, multipliers, Republic of Buryatia

Abstract

The article deals with the relationship between value-added and household consumption indicators under the input-output model. It studies the problems of developing and using regional intersectoral models with an extended set of endogenous parameters. The practical applications of disaggregated regional models based on the Social Accounting Matrix method are shown to be limited. The Miyazawa model serves as a tool to analyze intersectoral interactions in the region’s economy, linking the indicators of formation and use of income by various groups of households. The additional features of the considered model are revealed in comparison with the classical input-output model. We describe the production and consumption effects of multiplication from the consumer activity of households. The article also analyzes intersectoral relations in the regional economy based on data for the Republic of Buryatia for 14 types of economic activity. We present the wage and specific expenditure coefficient matrices for final household consumption in the context of 5 income groups by sectors of the economy in the republic. A comparative analysis of the region’s gross output multipliers by Leontiev and Miyazawa models has been carried out. It is determined that the consumer activity of households has a maximum impact on the “education” and “health and social services” economic activities. The minimum influence is inherent in “construction” and “wholesale and retail trade”. In conclusion, we prove that applying the Miyazawa model at the regional level provides greater adequacy compared to the calculations at the national scale due to less dependence on the final use of profits.