Box 4.4 Input–output patterns
The table represents an agricultural region, with an urban-based agricultural service industry and a fast-growing tourism
industry.
- The outputs from the Agricultural ‘level’aggregate at
1,800 units of value: of which 200 units go back into
agriculture itself (to plant nurseries, agricultural
research etc.), 1,000 units go into the industrial sector
(wool for making carpets, fruit for canning etc), 100
and 200 units are taken up, respectively, for local
tourism and sustenance by within-region consumers,
while 300 units of local produce is exported out of
the region. - The outputs from the Industrial ‘level’aggregate as 900
units of value: going mostly to the agricultural sector
(300 units for machinery maintenance, plant hire etc.),
back into industry itself (100 units for buildings, plant
maintenance and upgrading), to tourism infrastructure
(150 units for providing accommodation and
servicing facilities), direct to the consumer (50 units
of locally consumed manufactures), and 300 units of
niche machinery products for export. - The outputs from the emergent Tourism ‘level’of activ-
ity aggregates as a minor 700 units of value; with 50
units going to the agriculture sector (farm-visiting and
rural home-staying), 50 units to industry and mainte-
nance, 150 units to the provision of tourism facilities
(infrastructure, buildings, training), 50 consumer units
for purchases of local agriculture, and a very impres-
sive 350 units (half the total) as ‘export’ earnings
(money spent by out-of-region visitors on accommo-
dation, transportation, fees and handicrafts). - TheLabour ‘level’aggregates as 1,000 units of value;
with 500 units going into the dominant on-the-land
agricultural sector, 300 units going into the agri-
supporting industrial sector, 100 units to the emer-
gent tourism sector (tourism services), and 100 units
going into the consumer sector.
An important feature with this array is that exports from
the historically ‘dominant’ agricultural level represents
less than 19 per cent of gross output from that sector;
whereas exports from the more ‘clever’ industrial level
represents 33 per cent of the gross output from that
sector (withal from only 10 per cent of the region’s
labour input); and that export earnings from the ‘very
clever’ tourism level represents 50 per cent of the gross
output from that sector, the most offensive blot on this
success being the repatriation of some of the tourism
earnings offshore.a
Assuming constant-scale characteristics for the model
(adherence to ‘linearity’ and ‘homogeneity’) analysts
can set out to ascribe outcomes which produce altered
‘input’ and ‘output’ figures: depicting beneficial outcomes
from (say) reducing inputs at the agricultural level,
and commensurately increasing inputs at the tourism
level.
a‘Very clever’ on two accounts:firstbecause of the
‘export’ orientation of the tourism activity;second
because of the modest level of capitalization per created
workplace (contrasting with the higher level of capital-
ization involved with the creation of workplaces in
agriculture and industry).
Agriculture
sector
column I
Industrial
sector
column II
Tourism
sector
column III
Consumer
sector
column IV
Exports
sector
column V
Agriculture
level
Industry
level
Tourism
level
Labour
level
1000 100 200
300 100 150 50 300
50 100 150 50 350
300
1,800
gross output
900
gross output
700
gross output
500 300 100 100 1,000
200
OUTPUTS