This thesis involves construction of input-output models measuring the economic impact of a farming innovation organisation (The Birchip Cropping Group) on the Victorian regional economy of Buloke Shire. The input-output modeling undertaken is of two forms; the first being a simple naïve top-down model, and the second a more sophisticated hybrid model. The naïve top-down model is based on input-output coefficients drawn from the Australian national input-output tables, and is regarded as naïve because these input-output coefficients are not adjusted to take account of local economic factors. The hybrid model uses the same national input-output coefficients as a base, and then modifies these coefficients to better reflect industrial conditions in the Shire using a location quotients-adjustment technique, as well as using original survey data collected from entities operating in Buloke Shire. One of the aims of the thesis is to determine whether the simpler naïve top-down approach produces results consistent with the theoretically more accurate hybrid methodology, and thus whether the naïve top-down approach represents a reliable method of conducting regional economic impact analysis. That is, can such studies be undertaken accurately using a naïve top down approach, or is it necessary to adopt the more resource intensive methodology of a hybrid model. The results of the analysis suggest construction of a hybrid model is advisable, as generally the naïve top-down approach produces over-estimates of the economic effects of the Birchip Cropping Group. That is, it appears the economic impact multipliers estimated with the naïve top-down model are too large, suggesting the time and effort involved in constructing the hybrid model was worthwhile. Using the hybrid model, the conclusion is that the Birchip Cropping Group has a significant affect on the regional economy of Buloke Shire, with the economic impact being estimated at close to $600,000 in additional output, $61,000 in additional income, and 3.5 additional jobs per year.
| Identifer | oai:union.ndltd.org:ADTP/210443 |
| Date | January 2008 |
| Creators | Gangemi, Michael Andrew, michael.gangemi@rmit.edu.au |
| Publisher | RMIT University. Economics, Finance And Marketing |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
| Rights | http://www.rmit.edu.au/help/disclaimer, Copyright Michael Andrew Gangemi |
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