Development of a Multi-Region Input-Output Database for Policy Applications

Abstract

Countries face different problems depending on factors such as geographical position, climate, wealth, political regime, and natural resources. Given this diversity, it is important that economic, social, and environmental assessments utilise regionally detailed and comprehensive information. However, when examining a particular type of assessment, studies (in most cases) are usually conducted without any regional or sectoral specificity due to the difficulty of creating an inter-regional modelling framework at sub-national levels. A fundamental tool for identifying specific economic characteristics of regions (either global or within a nation) is a multi-region input-output (MRIO) system. Through the understanding of regional economic distribution, sectoral contribution, and inter-regional supply chain network, input-output (I-O) based assessments are capable of providing a comprehensive picture of regional economic structures. However, the creation of an MRIO system is a time-consuming task that requires skill in handling the complexity of data compilation and reconciliation. To this end, finding an alternative method for creating an MRIO database in the most efficient way is necessary. In this thesis, I developed new MRIO databases that utilised virtual laboratory technology: IndoLab, TaiwanLab, SwedenLab, and USLab , and also took part in developing the JapanLab. I then demonstrated the use of these new facilities for addressing research questions surrounding employment multipliers in Indonesia, economic impacts due to natural disasters in Taiwan, regional consumer emissions in Sweden, and the responsibility for food loss in Japan. In addition, I presented the application of a new dataset in the global MRIO database for assessing the carbon footprints of global tourism sectors.