Determining the Economic Sectors with Most Backward and Forward Linkages in Isfahan Province with an Emphasis on Adjustment of National Technology Coefficients in the CHARM Method

Document Type : Original Article

Authors

1 PhD Candidate in Economics, Faculty of Administrative Sciences and Economics, University of Isfahan, Isfahan, Iran

2 Professor of Economics, Faculty of Administrative Sciences and Economics, University of Isfahan, Isfahan, Iran

3 Associate Professor of Economics, Faculty of Administrative Sciences and Economics, University of Isfahan, Isfahan, Iran

4 Associate Professor of Economics, Faculty of Social Sciences and Economic, Al-Zahra University, Tehran, Iran

10.29252/jem.2023.230485.1820

Abstract

Using regional input- output tables is a way to understand regional economy and sector policies. In Iran, due to the lack of regional data collection by national institutions, non-statistical methods for estimating regional input-output tables have been of interest. The CHARM method is one of the conventional methods of regionalization the national input-output tables in the conditions of simultaneous bilateral trade. But one of the problems of CHARM method is the assumption of equality of national and regional technology coefficients. With this assumption, the regional difference is practically ignored. This study is trying to prevent the underestimation of provincial value added by regionalizing the coefficients of national technology and to include regional differences in the analysis. Also, the sections with the most posterior and anterior links will be identified. The results show that the value added of Isfahan province and other provinces of the country are closer to reality in the adjusted state. Also, the industrial sector of Isfahan province has the most backward and forward linkages in the adjusted state.

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References

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