Decomposition of Multiplicative Effects in a Two-Sector Economy: Influence of External Demand (On the Example of the Far Eastern Constituent Entities of the Russian Federation)

ERI FEB RAS	Issue's contents	RUS
	Regionalistica 2024 Volume 11 number 6 pages 5-17

Title of the article	Decomposition of Multiplicative Effects in a Two-Sector Economy: Influence of External Demand (On the Example of the Far Eastern Constituent Entities of the Russian Federation)
Pages	5-17
Author 1	Belousova Anna Vasilyevna candidate of sciences (economics), senior research fellow Economic Research Institute FEB RAS 153, Tikhookeanskaya Street, Khabarovsk, Russia, 680042 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0002-8780-8146
Author 2	Isaev Artem Gennadyevich candidate of sciences (economics), director Economic Research Institute FEB RAS 153, Tikhookeanskaya Street, Khabarovsk, Russia, 680042 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0001-6569-2982
Abstract	On the base of regionalized input-output tables the decomposition of output multipliers was carried out for 11 Far Eastern regions considering a two-sector representation of the economy: the basic sector (oriented towards external demand) and the service sector (oriented towards intraregional demand). Estimates were obtained for the structure of multiplier effects of external demand on regional output by industry, taking into account interactions between sectors. It was shown that the corresponding multiplier effects from 70 to 96% are formed in the basic sector and from 4 to 30% in the service sector, respectively. The effects of changes in demand for products of the service sector, on the contrary, are almost completely (by 98%) localized in this sector. Sectoral decomposition of intersectoral multipliers made it possible to identify cross-effects of changes in aggregate final demand, leveling (compensating) the negative impact of external shocks on the economy.
Code	332.14
DOI	10.14530/reg.2024.6.5
Keywords	intersectoral interactions, input-output table, technical coefficients, multiplier effect, Far Eastern regions of the Russian Federation
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For citation	Belousova A.V., Isaev A.G. Decomposition of Multiplicative Effects in a Two-Sector Economy: Influence of External Demand (On the Example of the Far Eastern Constituent Entities of the Russian Federation). Regionalistica [Regionalistics]. 2024. Vol. 11. No. 6. Pp. 5–17. http://dx.doi.org/10.14530/reg.2024.6.5 (In Russian)
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