Presentation is loading. Please wait.

Presentation is loading. Please wait.

3. Structure of the model, economic flows and linkages North East Regional Economic Model( NEEM) Overview and Training Session 24 June 2008 North East.

Similar presentations


Presentation on theme: "3. Structure of the model, economic flows and linkages North East Regional Economic Model( NEEM) Overview and Training Session 24 June 2008 North East."— Presentation transcript:

1 3. Structure of the model, economic flows and linkages North East Regional Economic Model( NEEM) Overview and Training Session 24 June 2008 North East Economic Model. Overview and training session 1

2 North East industrial sectors - production and sales Trade Government (local and central) Sub-regional breakdowns Households (regional population) Qualifications Rest of UK Rest of World (inc. breakdowns) Occupations Industrial clusters Capital investment Schematic diagram 24 June 2008 North East Economic Model. Overview and training session This is a basic way of thinking about the model. A more formal schematic based upon economic theory provides a more fruitful way of conceptualizing the model Circular flow of income

3 The circular flow of income NORTH EAST FIRMS NORTH EAST HOUSEHOLDS GOODS & SERVICES SPENDING ON GOODS AND SERVICES LABOUR AND OTHER FACTOR SERVICES WAGES AND OTHER FACTOR INCOMES 24 June 2008 North East Economic Model. Overview and training session

4 Expanded circular flow NORTH EAST FIRMS NORTH EAST HOUSEHOLDS GOODS & SERVICES SPENDING ON GOODS AND SERVICES LABOUR AND OTHER FACTOR SERVICES WAGES AND OTHER FACTOR INCOMES TAXATIONIMPORTS Rest UK and Oseas SAVINGSGOVERNMENT SPENDING EXPORTS Rest UK and Oseas INVESTMENT These monetary flows can be clearly seen in the rows and columns on the next overhead

5 5 £ million Primary SecondaryManufacturingUtilities Construction Distribution Private services Public services Total intermediate demandCapitalexpenditure HouseholdsLocal & central government Exports to therest of the UK EU 15 goodsexports Non-EU 15 goods exportsOverseas service exportsTotal product demand Primary 7038- 1223 53 266- 2171412 354 Secondary 028126010 29 20- 281129921 534 Manufacturing 897811213791224188 1,450 146458- 8,9293,9342,345139 17,401 Utilities 4142575387246070 973 0344- 1,178- - 3 2,499 Construction 31051271,02225429198 1,765 1,735114- 1,987- - 5 5,607 Distribution 10750594447180109 912 483,271- 89682357132 6,553 Private services 23801,56010637991331821,028 7,270 2505,3804889,8858361,208 24,524 Public services 31797912189290 590 248259,9401,106- - 77 12,560 Total NE purchases571233,2787111,6051,1144,2681,88613,0432,20710,45810,42824,4804,9073,0451,465 Overseas imports 16503,733158267661,093913 UK regional imports 1201656,0008141,1451,1654,5592,024 Net expenditure taxes 101638576162132722252 GVA 1742105,4159252,3743,67512,5447,629 Inc. compensation of employment 7816146382471360210963476858 Total industry output 37756418,8112,6845,5536,15323,18612,70470,033 2003 North East Regional Input-Output Table Intermediate Purchase SectorsFinal Demand Sectors Notes: The Government sector also includes NPISH Capital expenditure includes changes in valuables, etc Overseas tourist spending is included in overseas service exports, tourists from the rest of the UK are included in exports to the UK Values in the lower right hand quadrant of the table have been omitted for simplicity Some of these figures are approximate and should not be quoted, accurate figures can be obtained from the Durham University/OneNE regional economic model -' represents a null value, '0' represents a value of less than 0.5

6 Benefits of input-output tables The annual I-O Tables display the transactions of all goods and services in the NE economy for a single year in matrix form. This adds an important extra dimension to the way economic accounts are compiled and presented. Other national & regional accounts statistics are concerned with the composition and value of goods and services entering final demand (for example, purchases by consumers), and with the outputs and incomes generated by the economic process. They do not display the inter-industry transactions which link these activities. 24 June 2008 North East Economic Model. Overview and training session

7 Benefits of input-output tables The production of Annual I-O Tables allows a close examination of the consistency of the regional accounts by linking the components of industries gross value added, inputs and outputs components of final demand within a single framework. Reconciliation of components of the production, income and expenditure measures of Gross Domestic Product (GDP) are reconciled during the production of these tables. 24 June 2008 North East Economic Model. Overview and training session

8 Structural features 110 Industries and product groups For each industry data is available on Output and GVA Capital expenditure Worker headcounts FTE workers FTE workers by industry can be disaggregated into 7 Qualification groupings 22 Occupation groupings Business size 24 June 2008 North East Economic Model. Overview and training session

9 Structural features For each industry data is available on Goods exports by 14 EU countries, 7 other overseas areas, and other UK regions Service exports, overseas and other UK regions Imports from overseas and other UK regions Income and spending for 11 household groups (SOC classification plus unemployed and retired) Spending patterns of domestic and overseas tourists Spending patterns of local and national government 24 June 2008 North East Economic Model. Overview and training session

10 Intermediate Production Household Incomes Final Demands ExogenousHouseholds Leakages Total Inputs Total Outputs Core data The model is contained within a series of interconnected matrices. The core is an Input-Output matrix. This core matrix maps to additional matrices for Qualifications Occupations Business sites 24 June 2008 North East Economic Model. Overview and training session

11 North East Overseas Imports AgricultureForestryFishing Agriculture26.700 Forestry06.10 Fishing000.2 North East Rest of UK Imports AgricultureForestryFishing Agriculture8.400 Forestry00.30 Fishing000 North East Domestic AgricultureForestryFishing Agriculture6.700 Forestry01.20 Fishing000.1 Goods and Services within the North East Economy = Locally produced + Imports from the rest of the UK + Imports from overseas North East Economy AgricultureForestryFishing Agriculture41.800 Forestry07.60 Fishing000.3 Each of these tables is a large matrix containing various pieces of information. The NE Domestic Matrix contains over 21,000 cells … 11

12 North East Rest of UK Imports AgricultureForestryFishing Agriculture26.700 Forestry06.10 Fishing000.2 North East Overseas Imports AgricultureForestryFishing Agriculture8.400 Forestry00.30 Fishing000 North East Domestic AgricultureForestryFishing Agriculture6.700 Forestry01.20 Fishing000.1 Goods and Services within the North East Economy = Locally produced + Imports from overseas + Imports from the rest of the UK North East Economy AgricultureForestryFishing Agriculture41.800 Forestry07.60 Fishing000.3 Intermediate Sales/ Purchases (111x111) Capital Sales (40x111) Household Purchases (11x111) Government & NPISH (3x111) Export Sales/ Purchases (23x111) Tourist Spending (2x111) Wages etc. Tax Taxes Savings Taxes The wages element of the intermediate matrix maps to social accounting matrices. 12

13 Wage costs etc. FTEs AgricultureForestryFishing Corporate Managers 04023 Managers in agric. … 26642664 Science and tech prof. … 02811 Incomes (£m) AgricultureForestryFishing Corporate Managers 01.40.3 Managers in agric. … 55.30.70.6 Science and tech prof. … 01.30.1 Incomes by sector and occupation (25x111) FTEs by industry and occupation (25x111) Headcounts by FT, PT & self employed by sector (3x111) FTEs by industry and qualification (7x111) Qualifications Degree or equiv Higher Education GCE A-Level or Equiv 13


Download ppt "3. Structure of the model, economic flows and linkages North East Regional Economic Model( NEEM) Overview and Training Session 24 June 2008 North East."

Similar presentations


Ads by Google