Regional Growth in a Multiregional I-o Framework1

Since the pioneering work of Wassilly Leontief, a remarkable amount of theoretical and empirical work has continuously supported Input-Output modelling. In particular, the peculiar structure of dynamic Input-Output models have originated, in numerous fields ranging from Mathematical Economics to System Theory, an abundance of contributes. This paper deals with the computational problem of managing regional growth within a dynamic multiregional Input-Output model. Starting from the basic matrices of technological, capital and trade coefficients, the regional components associated to a given group of regions are appropriately recognised and separated. A numerical example based on the Italian case, is also discussed. An earlier version of this paper was presented at the Thirty-fourth Annual Meeting of Western Regional Science Association in San Diego and has benefitted from comments during the conference. The authors are grateful for suggestions rendered by the anonymous referees. We also wish to thank Prof. G. Hewings and P. R. Israilevich for their useful comments and suggestions.