Extended input–output model for urbanization: an empirical test using Chinese data

Abstract Although the input–output model has been widely used for both pure economic analysis and environmental issues, demographic analysis has been relegated to the periphery of the input–output literature. Previous researchers have made significant contributions in developing the economic–demogra...

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Main Author: Nobuhiro Okamoto
Format: Article
Language:English
Published: SpringerOpen 2021-03-01
Series:Journal of Economic Structures
Subjects:
Online Access:https://doi.org/10.1186/s40008-021-00233-9
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author Nobuhiro Okamoto
author_facet Nobuhiro Okamoto
author_sort Nobuhiro Okamoto
collection DOAJ
description Abstract Although the input–output model has been widely used for both pure economic analysis and environmental issues, demographic analysis has been relegated to the periphery of the input–output literature. Previous researchers have made significant contributions in developing the economic–demographic modeling from the unemployment perspective, in the context of shrinking regional economies. This study aims to develop an extended input–output model for urbanization, based on the Batey–Madden model by incorporating the “urbanization process”. This process is associated with one of the facets of demographic change and has received little attention in the literature. The effectiveness of the model is theoretically explored and empirically tested using Chinese data, which show rapid progress of urbanization in China. The study proposes a new “urbanization multiplier”, which implies intense population concentration in cities based on an employment multiplier in urban areas and labor allocation possibilities between urban and rural areas. The result from a preliminary application shows that the economic structure can determine the urbanization multiplier, indicating that the extent of employment opportunities promotes urbanization and the size of the population attracts more workers from rural areas. The model provides a fresh aspect of urbanization in the existing literature.
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spelling doaj.art-ade72bda6de046b2b81f51d7f67115342022-12-21T22:56:51ZengSpringerOpenJournal of Economic Structures2193-24092021-03-0110112410.1186/s40008-021-00233-9Extended input–output model for urbanization: an empirical test using Chinese dataNobuhiro Okamoto0Daito Bunka UniversityAbstract Although the input–output model has been widely used for both pure economic analysis and environmental issues, demographic analysis has been relegated to the periphery of the input–output literature. Previous researchers have made significant contributions in developing the economic–demographic modeling from the unemployment perspective, in the context of shrinking regional economies. This study aims to develop an extended input–output model for urbanization, based on the Batey–Madden model by incorporating the “urbanization process”. This process is associated with one of the facets of demographic change and has received little attention in the literature. The effectiveness of the model is theoretically explored and empirically tested using Chinese data, which show rapid progress of urbanization in China. The study proposes a new “urbanization multiplier”, which implies intense population concentration in cities based on an employment multiplier in urban areas and labor allocation possibilities between urban and rural areas. The result from a preliminary application shows that the economic structure can determine the urbanization multiplier, indicating that the extent of employment opportunities promotes urbanization and the size of the population attracts more workers from rural areas. The model provides a fresh aspect of urbanization in the existing literature.https://doi.org/10.1186/s40008-021-00233-9DemographyUrbanizationMigrationInput–output analysis
spellingShingle Nobuhiro Okamoto
Extended input–output model for urbanization: an empirical test using Chinese data
Journal of Economic Structures
Demography
Urbanization
Migration
Input–output analysis
title Extended input–output model for urbanization: an empirical test using Chinese data
title_full Extended input–output model for urbanization: an empirical test using Chinese data
title_fullStr Extended input–output model for urbanization: an empirical test using Chinese data
title_full_unstemmed Extended input–output model for urbanization: an empirical test using Chinese data
title_short Extended input–output model for urbanization: an empirical test using Chinese data
title_sort extended input output model for urbanization an empirical test using chinese data
topic Demography
Urbanization
Migration
Input–output analysis
url https://doi.org/10.1186/s40008-021-00233-9
work_keys_str_mv AT nobuhirookamoto extendedinputoutputmodelforurbanizationanempiricaltestusingchinesedata