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Article
Publication date: 18 November 2021

Timotej Jagric, Stefan Otto Grbenic and Vita Jagric

With high public debts and suffering economies after the COVID-19 pandemic, governments will look for ways to promote recovery. Literature substantially reports on the favorable…

Abstract

Purpose

With high public debts and suffering economies after the COVID-19 pandemic, governments will look for ways to promote recovery. Literature substantially reports on the favorable macroeconomic impact of the healthcare sector.

Design/methodology/approach

The authors use data on 19 European countries. Over 30 variables are analyzed to find factors that foster or suppress the economic impact of the healthcare sector. The economic impact is thereby expressed through five types of total multipliers, acting as dependent variables. The authors estimate multiple econometric models.

Findings

The results indicate factors that intensify or reduce the economic impact of the healthcare sector as they cause the value of one or more economic multipliers to augment or to diminish. Positive effects are expected from the growth of public funds' share in total healthcare expenditure leading to a higher output, income and value-added multipliers. The import multiplier diminishes when expenditure on healthcare as percent of GDP rises. On the other hand, rising expenditure on pharmaceuticals in the share of healthcare expenditure lowers the output multiplier. Rising GDP per capita and higher healthcare systems' technical efficiency cause the employment multiplier to lower.

Originality/value

Policymakers can strengthen the economic impact of the healthcare sector on the national economy. This could be achieved by stimulating factors, being identified in our study. Strengthening the economic impact of the healthcare sector is especially welcomed when fostering economic recovery is needed.

Details

International Journal of Health Governance, vol. 27 no. 1
Type: Research Article
ISSN: 2059-4631

Keywords

Article
Publication date: 14 May 2018

Andreas Gkouzos and Manolis Christofakis

The purpose of this paper is to examine the multiplier effects of economic activities in the local economy of Greek non-metropolitan prefectures at NUTS3 level according to the…

Abstract

Purpose

The purpose of this paper is to examine the multiplier effects of economic activities in the local economy of Greek non-metropolitan prefectures at NUTS3 level according to the Eurostat classification.

Design/methodology/approach

A disaggregate economic base model using OLS regression with clustered standard errors is implemented in 49 non-metropolitan prefectures and 17 economic activities for 2000 and 2012. The specific model indicates a clear picture of multiplier effects of economic activities among the prefectures as it has a similar logic to the input-output analysis while bearing in mind the spatial effects among prefectures. The specific model has not applied for testing base multipliers in the Greek economy according to the academic literature.

Findings

Non-traditional export-oriented activities play a significant role in the economic growth of the non-metropolitan prefectures. Their multiplier effects are higher than the traditional basic activities. Especially, some of these activities indicate strong shifts on specific local activities, which tend to be the significant multiplier effects on the overall local economy. Of course, the existence of agglomeration economies plays a considerable role in non-metropolitan prefectures with a significant population and non-metropolitan prefectures which are in insular space or belong to the perimetric and interior mountainous space, which are sparsely populated.

Originality/value

The specific model applies at the NUTS3 level, according to the Eurostat classification. Also, the model indicates that the multiplier effects come from non-traditional export activities, such as, information-communication, arts entertainment, health services, professional support services and real estate in the overall local economy. Finally, the spatial correlation influences the sectoral multipliers.

Details

Journal of Economic Studies, vol. 45 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 15 June 2015

Hyojin Kim and Byung-Gook Kim

The purpose of this paper is to be limited to provide an overall economic structure linked with a particular hospitality industry by identifying the economic structure of…

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Abstract

Purpose

The purpose of this paper is to be limited to provide an overall economic structure linked with a particular hospitality industry by identifying the economic structure of relations between the two hotel industries and other industries within a particular state in the USA.

Design/methodology/approach

The analyses of output, labor income and employment multipliers from the input–output system were performed using the IMPLAN 3.0 software. The study attempted to compare the hotel/motel industry (industry code 411) and the accommodations industry (industry code 412) with the top ten industries and averages of each set of multipliers to estimate the relative importance and contribution of the two hotel industries to the economy of Texas. After this comparison, the aggregated input–output tables and multipliers were prepared to determine the economic inter-relationship between the two combined hotel industries (industry code 411 plus industry code 412) and the non-hotel industries, using the criteria of the NAICS (North American Industry Classification System).

Findings

The three findings of this study are summarized as follows. First, the two hotel industries impacted the state economy due to a high induced effect from output and a considerable direct, indirect and induced effect from labor income and employment, despite their relatively lower multipliers and the economic downturn in the state. Second, the hotel-related industry had a strong inter-dependent relationship with the finance and insurance-related industries. Finally, while the hotel industry generated more labor income and employment than did the other accommodations industry, it is interesting that the other accommodations industry created more output than did the hotel industry.

Research limitations/implications

Other than limitations pertaining to assumptions of input-output model, an input-output analysis alone cannot become the best analytical method for decision-making. The study was a cross-sectional study with 2009 data and did not incorporate a time-series flow of the state economic structure over several decades. A study of the inter-relationship among varied states bordering the state could be worthwhile to identify the flow of inputs and outputs.

Originality/value

Despite a considerable number of research in measuring the economic impacts, this paper was of great significance, in that the economic impact of the hotel industry that has never been performed in a particular state of the USA was analyzed. Additionally, these quantified economic data and results should be helpful to future plans and policies associated with the hotel industry.

Details

Tourism Review, vol. 70 no. 2
Type: Research Article
ISSN: 1660-5373

Keywords

Book part
Publication date: 23 October 2009

John O. Ward

All of the above proposals are realities in Western Europe, and it is suggested that the adoption of such “reforms” would substantially reduce the transaction costs of providing…

Abstract

All of the above proposals are realities in Western Europe, and it is suggested that the adoption of such “reforms” would substantially reduce the transaction costs of providing compensation to deserving plaintiffs, improve the efficiency of the tort system, and provide manufacturers and service providers with greater predictability and “fairness” in potential tort damages in the United States.

Details

Personal Injury and Wrongful Death Damages Calculations: Transatlantic Dialogue
Type: Book
ISBN: 978-1-84855-302-6

Article
Publication date: 18 January 2018

Kai Kronenberg, Matthias Fuchs and Maria Lexhagen

Previous studies on tourism input-output (IO) primarily focus on a single year’s snapshot or utilize outdated IO coefficients. The purpose of this paper is to analyze the…

Abstract

Purpose

Previous studies on tourism input-output (IO) primarily focus on a single year’s snapshot or utilize outdated IO coefficients. The purpose of this paper is to analyze the multi-period development of regional tourism capacities and its influence on the magnitude of the industry’s regional economic contribution. The paper highlights the importance of applying up-to-date IO coefficients to avoid estimation bias typically found in previous studies on tourism’s economic contribution.

Design/methodology/approach

For the period 2008-2014, national IO tables are regionalized to estimate direct and indirect economic effects for output, employment, income and other value-added deffects. A comparison of Leontief inverse matrices is conducted to quantify estimation bias when using outdated models for analyzing tourism’s economic contribution.

Findings

On the one hand, economic linkages strengthened, especially for labour-intensive sectors. On the other hand, sectoral recessions in 2012 and 2014 led to an economy-wide decline of indirect effects, although tourists’ consumption was still increasing. Finally, estimation bias observed after applying an outdated IO model is quantified by approximately US$4.1m output, 986 jobs full-time equivalents, US$24.8m income and US$14.8m other value-added effects.

Research limitations/implications

Prevailing assumptions on IO modelling and regionalization techniques aim for more precise survey-based approaches and computable general equilibrium models to incorporate net changes in economic output. Results should be cross-validated by means of qualitative interviews with industry representatives.

Practical implications

Additional costs for generating IO tables on an annual base clearly pay off when considering the improved accuracy of estimates on tourism’s economic contribution.

Originality/value

This study shows that tourism IO studies should apply up-to-date IO models when estimating the industry’s economic contribution. It provides evidence that applying outdated models involve the risk of estimation biases, because annual changes of multipliers substantially influence the magnitude of effects.

Article
Publication date: 8 October 2018

Zaini Achmad

This paper aims to analyze the superior economic sector by looking at its contribution to the gross regional domestic product (GRDP) of East Kalimantan Province, the economic

Abstract

Purpose

This paper aims to analyze the superior economic sector by looking at its contribution to the gross regional domestic product (GRDP) of East Kalimantan Province, the economic base, the multiplier effect and the strength of inter-sectoral linkages.

Design/methodology/approach

This study was designed through two research approaches, namely, quantitative and qualitative method. This is intended to complement the results of the phenomenon under study and to strengthen the analysis. Secondary data were analyzed by the level of contribution of the economic sectors to the GRDP, and the base sector was determined through the location quotient approach. The two methods of calculation helped to reveal the dominant economic sectors in East Kalimantan Province. The Input Output (IO) Table in 2016 was made up dated from the 2009 IO Table to be used as a basis for building Social Accounting Matrix data or known as the East Kalimantan Regional Socio-Economic Balance System (SEBS) (a matrix of 49 × 49 sectors) in 2017 by using the RAS method. To be consistent, these SEBS data are then aggregated so all commodities are combined into economic sectors used to determine the leading sector on the East Kalimantan Province SEBS in 2016 (a matrix of 41 × 41 sectors).

Findings

Based on the assessment by scoring of the criteria for determining the leading economic sectors in East Kalimantan, i.e. the contribution of the economic sector to GRDP, the economic base, the multiplier effect (income, production factor, and output) and the linkages between sectors, both backward and forward linkage, shows the ten leading sectors as follows: the trade; paper and printed goods; financial institutions and other financial services; fertilizer; chemical and other rubber products; hotel and restaurant; general government; fisheries; excavation; and mining without oil and gas.

Originality/value

Similar research has never been done before in East Kalimantan; this is one of the originalities of this present study. No previous study has comprehensively studied the mediating effects of tourist value perception on the determination of economic sector, especially in Kalimantan, Indonesia.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 11 no. 3
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 26 February 2021

Pauline Teo, Akvan Gajanayake, Sajani Jayasuriya, Ali Izaddoost, Treshani Perera, Nader Naderpajouh and Peter S.P. Wong

This paper critically reviews economic impact assessment methods adopted in construction-related projects, to develop and present a novel bottom-up approach suitable to estimate…

Abstract

Purpose

This paper critically reviews economic impact assessment methods adopted in construction-related projects, to develop and present a novel bottom-up approach suitable to estimate regional economic impacts of building maintenance projects.

Design/methodology/approach

A thorough literature review of economic impact assessment in construction projects is carried out to identify the most relevant approach to estimate wider economic impacts of building maintenance projects. Based on these findings, a model based on the bottom-up approach to estimate wider economic impacts is developed. The applicability and face validity of the developed model is demonstrated through a case of cladding replacement program in Australia.

Findings

The literature review revealed that bottom-up models are better suited for estimating regional economic impacts of maintenance projects, given the challenges of obtaining micro-level economic data in the maintenance sector. In relation to the total economic impacts (direct and indirect), the results show that for every $1 of government spending on similar projects the Gross State Product would increase by $1.34. In terms of employment impact, over 70% of the direct economic value addition is driven by the increase in labour, where close to 3 FTE jobs will be required for each $1 million of spending on cladding replacement projects.

Originality/value

This paper presents a model to estimate the wider economic impacts of building maintenance projects, which is typically overlooked in the construction management field. The proposed model is developed to incorporate the variability of different building maintenance projects so that the economic impact resulting from these projects could be estimated more accurately. This model can be used by local government decision-makers to justify and prioritise maintenance projects in a similar manner to new construction projects.

Details

Engineering, Construction and Architectural Management, vol. 29 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 13 September 2011

Thomas A. Musil

Input‐output modeling can accurately forecast the benefits associated with corporate real estate projects. This paper aims to address the economic and employment impact analysis…

1978

Abstract

Purpose

Input‐output modeling can accurately forecast the benefits associated with corporate real estate projects. This paper aims to address the economic and employment impact analysis practices used in input‐output modeling and identifies resources for corporate real estate executives when working with community groups and public officials. By understanding this topic, corporate real estate executives can more effectively demonstrate the value of corporate activities to a community. An impact analysis case study is presented that includes an example of economic impact report content. Input‐output modeling is an effective analytical tool for corporate real estate site selection, facilities expansion, and other community relations projects. This study addresses the major issues in corporate/community relationships and focuses on the corporate need to demonstrate project contributions to community economic vitality. As political, special interest, and public views about business expansion and development harden, corporate real estate executives and specialists need to utilize effective tools to balance the debate.

Design/methodology/approach

This study presents a review of input‐output economic modeling techniques, application of the model, key terms, a case study of a $2.1 billion expansion project, and a sample outline of an impact analysis report. This approach provides a good conceptual framework, terms, and the application of an economic and employment impact approach to measuring the total contribution of corporate real estate activities in a community or region.

Findings

Demonstrates methods measuring economic and employment multipliers resulting from direct, indirect, and induced corporate project impacts. The findings will assist professionals responsible for corporate/community relations by enhancing their understanding of economic impacts.

Originality/value

This paper presents an overview of an effective modeling technique that can be used to accurately estimate the community economic and employment contributions resulting from a new corporate real estate project. Emerging corporate/community relations issues are discussed and resources are identified.

Article
Publication date: 16 March 2015

Christine Eriks, Phillip J Decker, Natalie Ainsworth, Rachel Ward, Roger Durand, Jordan Mitchell and Courtney Beck

The purpose of this paper is to inform funders and potential funders alike of the likely outcomes of their financial contributions. Additionally, the authors reported on the…

Abstract

Purpose

The purpose of this paper is to inform funders and potential funders alike of the likely outcomes of their financial contributions. Additionally, the authors reported on the assessment of the underlying logic model or theoretical underpinnings of what the authors will term the “Habitat Model.”

Design/methodology/approach

This study utilized a one-shot case study design to obtain data. In a one-shot case study the experimental group is exposed to the independent variable (X), then observations of the dependent variable (O) were made. No observations were made before the independent variable was introduced. A one-shot case study design was necessary as this is the first impact study conducted by BAHFH because of the changes within BAHFH over the years as well as the lack of consistent archival data on families and operations.

Findings

Most of the feedback obtained from stakeholders was positive. Many of the demographic variables showed significant improvement in partner family life style since moving into a Habitat house.

Practical implications

The findings of this study provide evidence of positive economic, social, and psychological impacts on families participating in BAHFH homeownership and on their communities. It also showed substantial economic impacts on the communities served. Furthermore, this study showed that other stakeholders in the process were substantially and positively impacted. Finally, this study pointed to a number of things that BAHFH needed to change such as homeowner education, financial counseling, and the opening of a local ReStore.

Originality/value

The current study provides data that provide evidence of positive economic, social, and psychological impacts on families participating in BAHFH homeownership opportunities.

Details

Housing, Care and Support, vol. 18 no. 1
Type: Research Article
ISSN: 1460-8790

Keywords

Article
Publication date: 10 August 2020

Leo H. Kahane

An economic impact study conducted in 2010 predicted that hosting the 34th America's Cup in 2013 would result in $1.37 billion in total economic benefits to the San Francisco Bay…

Abstract

Purpose

An economic impact study conducted in 2010 predicted that hosting the 34th America's Cup in 2013 would result in $1.37 billion in total economic benefits to the San Francisco Bay Area. The goal of this paper is to examine the ex post effects of this competition on real taxable sales in the Bay Area.

Design/methodology/approach

A panel data set of quarterly observations on taxable sales transactions for all counties in the state of California is employed. These data are explored using two estimation methodologies: difference-in-differences and synthetic control.

Findings

Results from a difference-in-differences analysis and a synthetic control analysis produce similar findings. Namely, the 34th America's Cup competition appears to have had a minimal, short-lived impact on San Francisco and no measurable impact on two nearby counties.

Practical implications

The empirical results in this paper underscore the findings of previous research showing that ex ante economic impact studies tend to overstate the net economic benefits of hosting mega-events.

Social implications

The results of this paper may serve as a warning to policy makers considering using tax dollars to host a mega-event that such events often do not generate the economic gains reported in typical economic impact studies.

Originality/value

This is the first paper to econometrically explore the impact of hosting the America's Cup on taxable sales transactions in a region. This paper also employs the relatively new empirical methodology called synthetic control.

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