Skip to main content
Log in

The structure of multi-regional trade flows: hierarchy, feedbacks and spatial linkages

  • Published:
The Annals of Regional Science Aims and scope Submit manuscript

Abstract

The identification and interpretation of regional economic structure is addressed by reference to a four region, three sector interregional input-output table for the US for 1982. Using the transactions matrix, a succession of self-influence feedback loops are identified, first at the macro-regional level (where all transactions are aggregated into one sector) and, subsequently, with more sectoral detail. The feedback loops are extracted hierarchically using the Matrioshka Hierarchical Feedback Loop Principle. The empirical results reveal the domination of domestic (intra-regional flows) and the dominant role that region 4 (Rest of the US) plays in the bi-lateral trading patterns. However, when sectoral flows are introduced to the intra- and inter-regional flows, the pattern of feedback loops becomes more complex, although the overall pattern matches the structure of the aggregate transactions flows. The analysis provides insights into structure and spatial linkages that cannot be revealed from the more usual data sources (such as the distribution of employment by sector). With tables available for more than one time period, it would be possible to examine structural changes in a more complete fashion.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Bureau of Economic Analysis (1992) Gross State Product Series. US Department of Commerce, Washington, DC

    Google Scholar 

  • Danzig G (1963) Linear programming and Extensions. Princeton, NJ, Princeton University Press

    Google Scholar 

  • Gillen WJ, Guccione A (1980) Inter-regional feedbacks in input-output model: some formal results. J Reg Sci 20:477–482

    Google Scholar 

  • Greytak D (1970) Regional impact of inter-regional trade in input-output analysis. Pap Reg Sci Assoc 25:203–217

    Google Scholar 

  • Greytak D (1974) Regional interindustry multipliers: an analysis of information. Reg Sci Urban Econ 4:163–172

    Google Scholar 

  • Guccione A, Gillen WJ, Blair PD, Miller RE (1988) Inter-regional feedbacks in input-output models: the least upper bound. J Reg Sci 28:397–404

    Google Scholar 

  • Hewings GJD, Gazel R (1993) Regional and interregional impacts of the US-Canada Free Trade Agreement. Discussion Paper 93-P-1. Regional Economics Applications Laboratory, University of Illinois, Urbana

    Google Scholar 

  • Hewings GJD, Sonis M, Lee J-K, Jahan S (1995) The structure of the Bangladesh interregional social accounting system: a comparison of alternative decompositions. In: Hewings GJD, Madden M (eds) Essays in Honour of Sir Richard Stone. Cambridge, Cambridge University Press

    Google Scholar 

  • Hulu E, Hewings GJD (1993) The development and use of inter-regional input-output models under conditions of limited information. Rev Urb Reg Dev Stud 5:135–153

    Google Scholar 

  • Krugman P (1991) Is bilateralism bad? In: Helpman E, Razin A (eds) International Trade and Trade Policy. Cambridge, MIT Press, pp 9–23

    Google Scholar 

  • Krugman P (1993a) Regionalism versus multilateralism: analytical notes. In: De Melo J, Panagariya A (eds) New Dimensions in Regional Integration. Cambridge, Cambridge University Press, pp 58–79

    Google Scholar 

  • Krugman P (1993b) The narrow and broad arguments for free trade. Am Econ Rev 83:17–28

    Google Scholar 

  • Metzler LA (1950) A multiple-region theory of income and trade. Econometrica 18:329–354

    Google Scholar 

  • Miller RE (1966) Inter-regional feedback effects in input-output models: a reappraisal. In: Perlman M, Leven CL, Chinitz B (eds) Spatial, Regional and Population Economics. New York, Gordon and Breach, pp 263–292

    Google Scholar 

  • Miller RE (1969) Inter-regional feedbacks in input-output models: some empirical results. Western Econ J 7:41–50

    Google Scholar 

  • Miller RE (1986) Upper bounds on the sizes of inter-regional feedbacks in multiregional input-output models. J Reg Sci 26:285–306

    Google Scholar 

  • Round JI (1978) An Inter-regional Input-Output Approach to the Evaluation of Nonsurvey Methods. J Reg Sci 18:179–194

    Google Scholar 

  • Round JI (1979) Compensating Feedback Effects in Inter-regional Input-Output Models. J Reg Sci 19:145–155

    Google Scholar 

  • Round JI (1983) Nonsurvey Techniques: A Critical Review of the Theory and the Evidence. Int Reg Sci Rev 8:189–212

    Google Scholar 

  • Round JI (1988) Incorporating the International, Regional and Spatial Dimension into a SAM: Some Methods and Applications. In: Harrigan FJ, McGregor PG (eds) Recent Advances in Regional Economic Modeling. London, Pion

    Google Scholar 

  • Sommer J, Hicks DA (eds) Rediscovering Urban America. Washington DC, US Department of Housing and Urban Development

  • Sonis M, Hewings GJD (1990) The ‘Matrioshka’ principle in the hierarchical decomposition of multiregional social accounting system. In: Anselin L, Madden M (eds) New Directions in Regional Analysis: Integrated and Multiregional Approaches. London, Pinter

    Google Scholar 

  • Sonis M, Hewings GJD (1993c) Hierarchies of Regional Sub-Structures and their Multipliers within Input-Output Systems: Miyazawa Revisited. Hitotsubashi J Econ 34:33–44

    Google Scholar 

  • Sonis M, Hewings GJD (1994) Matrix sensitivity, error analysis and internal/external multiregional multipliers. Discussion Paper 94-T-6, Regional Economics Applications Laboratory, University of Illinois, USA

    Google Scholar 

  • Sonis M, Oosterhaven J, Hewings GJD (1993a) Spatial economic structure and structural changes in the European Common Market: Feedback Loop input-output analysis. Econ Syst Res 5:173–184

    Google Scholar 

  • Sonis M, Hewings GJD, Lee J-K (1993b) Interpreting spatial economic structure and spatial multipliers: three perspectives. Geogr Anal 26:124–151

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Additional information

The data used in this analysis were prepared as part of an interregional computable general equilibrium model funded in part by grants from the Economic Development Administration, U.S. Department of Commerce and the Canadian Embassy. However, the views and interpretation expressed herein are those of the authors.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Sonis, M., Hewings, G.J.D. & Gazel, R. The structure of multi-regional trade flows: hierarchy, feedbacks and spatial linkages. Ann Reg Sci 29, 409–430 (1995). https://doi.org/10.1007/BF01581885

Download citation

  • Received:

  • Accepted:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01581885

Keywords

Navigation