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KRUMME G. Comments on interregional subcontracting patterns and bilateral feedbacks


The development of flow analysis, particularly interregional repercussion analysis, is severely handicapped by the dearth of data. For a number of years, NASA and the Pentagon have released data on the distribution of prime contractors in the United States. More recently, NASA also made accessible information on subcontract: and "sub-subcontracts." The paper suggests a way to utilize these data for capturing simple, two-region feedback effects of subcontract: which 'leak" from the prime -contracting region. The aggregate bilateral feed-back coefficient for any one region is an aggregate expression of three component-coefficients which isolate those parts of first-round subcontracts awarded to individual other regions, those parts resubco ntracted in the receiving regions, and, finally, those portions "returning" to the initial subcontracting region. A simplified and incomplete matrix of interstate subcontracting coefficients suggests the possibility of hierarchical characteristics in this interregional pattern with California as the dominant region

J.Reg. Sci., August 1970, 10(2), pp. 237-42 (English). Columbia University, U.S.A.

Further Resources: Interregional Feedback Effects in I/O Analysis


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