4.6 Evaluating Regional Economics Using the Economic Base Multiplier and Shift-Share Analysis Economic impact studies most of the time evaluate the regional economy changes in a selected major variable. Some examples of these variables are employment, income, or output and this is after an initial exogenous change. The thing that that economic developers are the most concerned about is how to estimate the total impact on one of the variables after a change. There is a ripple effect that is created after there is an increase or decrease in the demand for a region’s goods and services, which will effect on the economic activities past the initial external factors of the inflow of spending. 4.6.1 The economic Base Multiplier Each economy can …show more content…
it shapes on a theoretically uncomplicated economic framework, 2. it does not involve much training, time, or money to be put into action using a spreadsheet software, 3. it aids in making more informed decisions about following a new economic development projects, 4. it highlights economic interdependencies, and 5. the readiness of essential data makes it an practical method that should be involved in the tool box of each economic development planner. 4.6.2 Shift-Share Analysis The shift-share analysis relates regional economic changes for a certain time period to economic changes of a certain benchmark region. It evaluates past observed growth or decline of an industry between two distinct points in time. Shift-share analysis divides a regional industry sector’s change into three individual components: 1. national growth share (ngi): Analyzes regional economic growth in industry i with the common economic growth of the benchmark …show more content…
industry mix share (imi): Interprets economic change credited right to the regional industry mix (im). imi = eti * (Gi t→t+n - Gt→t+n) • imi - the regional industry mix share in industry i • Gi t→t+n – growth rate for employment in industry i in the benchmark region for the time interval t→t+n 3. regional growth share (rgi): Takes into reference for the difference in growth between the study and the reference regions that can be attributed only to regional factors. rgi = eti * (gi t→t+n – Gi t→t+n) • rgi – the regional growth share in industry i • gi t→t+n – growth rate for employment in industry I in the study region for the time interval t→t+n The final result of adding up all three parts of growth is the total growth (tgi). tgi = ngi + imi + rgi Wang, Xinhao, and Rainer Vom Hofe. Research Methods in Urban and Regional Planning. N.p.: n.p., n.d. Google Play. Web. 30 Oct. 2016.
In this essay I will be discussing the features of Scotland’s mixed market economy, describing four aspects of the Scottish economy; Tourism, unemployment, growth and the NHS.
The measure of growth is flawed, how countries see their growth is based on the consumption of their people. Many countries use the GDP (Gross Domestic Product) as an indicator for growth, as defined in It’s All Connected, “(GDP) is a calculation of the total monetary value of goods and services produced annually in a country” (Wheeler 11). The...
“The non-attainment area NSR program is designed to ensure that any new industrial growth in a non-at...
This paper will be outlining the theory behind the Endogenous Growth Theory, or EGT, and its comparison to other competing theories. To begin though it is important to clarify that the word endogenous just means to originate from within, or not attributable to any external or environmental factor, so one can assume that this theory relates to growth happening within the region instead of having to depend on external forces for market growth. EGT forces primarily on human capital, innovation, knowledge, and entrepreneurship to be the major contributors to economic growth within a region (Bennett). This innovation is a large part of the EGT, which manifests itself from research and
Throughout history, many different types of economic models and theories have been developed. These different philosophies of business often were an important and integral part of a government’s basic structure. For example communist countries like China and the Soviet Union practiced a type of socialism. While, democratic nations like the United States and Canada practice forms of capitalism. Also within these economic models exists different theories as well such as Keynsian economics and laissez faire economics. To understand how these types of economies work in the world today, it is important to study and define a variety of economic systems. Researching such economic systems as capitalism and socialism, and also looking at the ideas of laissez faire and the Keynsian economics, a person will start to have a better understanding of how business works in the world today.
The trends in unemployment affect three important macroeconomics variables: 1) gross domestic product (GDP), 2) unemployment rate, and 3) the inflation rate.
Every year there is a ‘league table‘ published showing the level of economic growth achieved by each country. The comparison is made using each countries Gross Domestic Product, or GDP. An important factor to look at is the difference between actual and potential economic growth. Actual economic growth increases in real GDP. This increase can occur as result of using previously unemployed resources, or reallocating resources into more productive areas or improving existing resources. Whereas potential economic growth is the productive capacity of the economy. For example, it can be shown by the predicted ability of the country to produce goods and services. This changes when there is an increase in the quantity or quality of the resources. All countries have different ways of achieving this with the resources they have available to them. For this reason it party answers the question of why some countries are richer than others. It is widely thought that the productive capacity of an economy will increase each year largely due to improvements in education and technology. This will obviously differ from country to country. For example, in the UK the quality of fertilizer could be improved, hence forth increase the years fruit and vegetable output.
Economics is an ever-changing field of study. Within that area of interest, there are many people who have influenced the world with their individual economic point of view. Some of those people have made a fundamental impact upon not only the United States of America, but also upon the world. Adam Smith, David Ricardo, John Maynard Keynes, Friedrich Von Hayek, Milton Friedman, and Fengbo Zhang are six men who have accomplished just that. Their opinions, actions, and words have forever changed the world of economics.
i. The economy is said to be ‘booming’ when demands for certain products and services rise. When demand rises, the prices will also increase. Increase in price can boost up the company’s profit. This enables companies to hire more workers thus increasing the numbers of employments. The increase in company’s profit also allows employers to raise the employees’ wages. When companies have more workers, they would be able to produce more products. Overtime, these outputs will then be sold to the people with jobs at a higher price because of the scarce amount of resources available.
One of the important economic variables being tracked is the consumer price index released by the Conference Board every month. Lately, people have claimed the economy seems to have a fair projection for consumer spending to some extent based on a 3.2 index increase in the last report. More specifically, thanks to the recent spending of the top 15% households comprised by higher income families, according to the report made by Kathleen Madigan of the Wall Street Journal in the article "Vital Signs: The 15%ers Are Feeling Better — and That’s Good for Economy’. However, the article and the chart posted note an important observation regarding the study of this trend. In 2012, the Commerce Department data implied the economy would suffer as high-income consumers felt nervous about the state of the economy generating a cutback in spending. Nevertheless, the trends seems to be different nowadays given that the economy is reacting to a new financial atmosphere in a new season. The data presented by Commerce notes wealthier families have decreased their spe...
In order to make useful, there are some characteristics such as being practical and dependable. As a dependable for it must be acurate, unbiased and verifiable and practically accounting information must be compareable, prepared in a time frame, user friendly, consistent and able to differentiate.
Living in this age of technology driven communication, rapid data transfer, and development of new processes has its many advantages. Humans have been able to work harder, faster, and more efficiently because of how everything has advanced. While there are many reasons to be grateful for these changes, there are also some questions relating to the economic model that has been presented. By looking more closely at both linear and circular economics, one should be able to gain a better understanding of how they both function in the world today.
Mainly advantages of location decide the structural growth of the industries in the economy. More number of states in the country faces the problem of advantage location. Similarly, the agriculture sector also suffers from natural calamities and other disturbances. The dependence on agriculture varies considerably across the states.
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public
Inflation, what does it mean? It is simply the rate at which the price of goods and services rises and thus leads to falling in purchasing power. It also means the rise in price as compared to a pre-defined benchmark. It can also mean an increase in supply of money in the market. Growth in economics refers to economic growth of a country and it means an increase in the market value of services and goods produced by a country over a period of time. Whatever the meaning is taken, both inflation and growth are closely related and dependent on each other and a proper balance should be established.