A NETWORK-BASED ALGORITHM FOR COMPUTING KEYNESIAN INCOME MULTIPLIERS IN MULTIREGIONAL SYSTEMS

Dimitrios TSIOTAS

Assistant Professor, Department of Regional and Economic Development, School of Applied Economic and Social Sciences, Agricultural University of Athens, Amfissa 33100, Greece

tsiotas@aua.gr

Abstract

In the context of the Keynesian “multiplier effect” approach, regional economic growth and development are conceived as the result of changes in demand stimulating an iterative process of returns of income. Aiming to revisit this established regional economic model, promote multidisciplinary thinking, enjoy better supervision of computations and intuitive interpretation of the results, broaden the applicability of the model, and serve educational purposes in regional economics and development, this paper proposes an algorithm for computing Keynesian income multipliers in multiregional systems. Building on network connectivity, estimations of the regional shares of imports, marginal propensity to consume, and changes in demand, the proposed algorithm provides a framework for standardizing computations of the multiplier effect in multiregional systems. The algorithm is implemented in two theoretical scenarios, contributing to a deeper conceptualization of the computation of the Keynesian income multipliers, and an empirical case of the land interregional commuting network in Greece, providing insights into the developmental dynamics of the labor market (demand for employment) in Greece. Overall, the analysis highlights the symbiotic relationship between the multiplier effect and network structure in regional markets, promotes multidisciplinary thinking in regional science and economics, and provides a code of this network-based algorithm to motivate further research.

Keywords: regional markets, multiplier effect; export-base model; demand for employment; interregional commuting

JEL classification: R11, R15, R23, R41

 pp. 25-46

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EMPLOYMENT IMPACT OF FIRMS’ INNOVATION: WHAT IS THE ROLE OF REGIONAL INSTITUTIONS? EVIDENCE FROM ITALY

Luca VOTA

Ph.D student, Department of Economics and Statistics (DISES) of the University of Salerno, Italy

lvota@unisa.it

Abstract

Employment effect of firms’ innovation is a widely studied topic at both cross-country and national level, while still few contributions deals with the local dimension. Moreover, the role of the institutional factors is still unexplored. In this manuscript, the author estimates the impact of private firms’ R&D spending, institutional quality and their interaction on the employment rate of the Italian regions. To accomplish his task, the author proposes two dynamic panel models and computes them through the Ordinary Least Squares (OLS), Fixed effects (FE) and System Generalized Method of Moments (GMM-SYS) regression tecniques. The obtained results suggest that the employment impact of firms’ innovation is negative, while the ability of the regional institutions to attract, support and cooperate with the innovative companies and the R&D investment programs jointly financed by regional governments and private firms positively affect the employment rate. The author has deduced appropriate policy implications from the provided evidence.

Keywords: Employment impact of firms’ innovation, R&D activity, Regional Economics

JEL classification: O30,R10, R11

 pp. 11-24

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TOOLS OF FORMATION OF THE SYSTEM OF SOCIO-ECONOMIC SECURITY OF TERRITORIAL COMMUNITIES OF THE REGION

Veacheslav SHEBANIN

Rector of the Mykolayiv National Agrarian University, 54020, 9 Georgiy Gongadze Str., Mykolayiv, Ukraine

shebanin8921@tanu.pro

Iurii KORMYSHKIN

Professor at the Department of Public Administration and Administration and International Economy. Mykolayiv National Agrarian University, 54020, 9 Georgy Gongadze Str., Mykolayiv, Ukraine

prof.kormyshkin@tanu.pro

Alona KLIUCHNYK

Head of the Department of Public Administration and Administration and International Economy, Mykolayiv National Agrarian University, 54020, 9 Georgy Gongadze Str., Mykolayiv, Ukraine

a-kluch@nuos.pro

Iryna ALLAKHVERDIYEVA

Graduate Student at the Department of Public Administration and Administration and International Economy, Mykolayiv National Agrarian University, 54020, 9 Georgy Gongadze Str., Mykolayiv, Ukraine

allakhverdiyeva@nuos.pro

Valentyna UMANSKA

Doctoral Student at the Department of Public Administration and Administration and International Economy, Mykolayiv National Agrarian University, 54020, 9 Georgy Gongadze Str., Mykolayiv, Ukraine

vumanska@uohk.com.cn

Abstract

The urgency of the stated subject of this scientific research is conditioned by the need to develop and integrate effective tools for the formation of a system of socio-economic security of territorial communities in a given geographical region, which is essential for the quality of economic development of these regional communities in the short and long term. The purpose of this research work is to study the tools of formation of the system of social and economic security of territorial communities of the region in the current system of social and economic relations in a given geographical region, as well as assessing the effectiveness of the practical application of such instruments in the context of assessing the role and place of these regions in the economic system of the whole State. The basis of the methodological approach in this scientific study is a combination of methods of quantitative and qualitative analysis of the key principles of the system of socio-economic security of territorial communities of the region, as well as tools to ensure this process. In the course of carrying out this scientific study, results have been obtained indicating the need to ensure the socio-economic security of a given region, through the creation of effective tools for the formation of a system of this kind of security, taking into account the specific features of a given region and its role and place in the socio-economic system of the whole state. The results obtained in the course of this scientific research, as well as the conclusions derived therefrom, have significant practical significance for representatives of specific territorial regional communities, whose immediate interests include addressing the socio-economic security of the territorial communities of the region through the use of the necessary effective tools for this task.

Keywords: region, socio-economic security, territorial communities of the region, economic development, development trends of regions, local socio-economic development

JEL classification: R1, R38, R50

 pp. 127-136

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