Interregional Feedbacks:

How Important Are They?


Many economic geographers and regional analysts have been unhappy with the concept of "leakage" in regional economic models and have come back to the issue as to how important interregional "feedbacks" are in the real world, and whether and when they can safely be ignored. In other words, how much is gained by using interregional approaches to the analysis of single regions or much is lost by a single-region approach?

What are "Inter-Regional Feedback Effects?"
When incomes increase in region B as a result of exports to region A, region B may in turn import from region A (directly via bilateral linkages or indirectly via one or more additional, "intermediate" regions) to satisfy the input requirements for the intial exports. The resulting exports of region A are thus not truly autonomous or "basic" (in economic base terms), but are dependent on economic activity levels in the region (A) itself. Models which consider and trace such feedbacks through systems of interregional linkages can be said to "endogenize" what may otherwise have been "exogenous" stimuli.

How important are such feedback effects? It has been suggested (see literature below) that a region's received feedback "stimuli" increase with

Supporting  &   Related   Pages:

Internet Sites: 

Input - Output Economic Models, I-O models; []

The simplest is the 'regional' I-O model that is based on 'general equilibrium analysis' and captures interindustry feedbacks. It however neglects interregional feedbacks. A more comprehensive view is included in the 'interregional', or 'multi- regional' I-O models.

Input-output Analysis []

There are two essential differences between the regional (RIO) and interregional models (IRIO). First the IRIO provides estimates of impacts not only in the region of primary interest, but in all other regions as well. Second, the IRIO includes estimate of the interregional feedbacks caused by the endogenization of the extraregional final demand, ...


Davis, Craig H., Regional Economic Impact Analysis & Project Evaluation. 1990/93, pp.12-3; 33, 37; (Paperback) [192 pages, Paper ISBN 0-7748-0350-9, CAN$25.95]

Greytack, D., Regional Impact of Interregional Trade in Input-Output Analysis, Papers, Regional Science Association, 25 (1970), 203-217.

Geoffrey J. D. Hewings Ricardo Gazel Michael Sonis, The structure of multi-regional trade flows: hierarchy, feedbacks and spatial linkages [] Annals of Regional Science, 29(4), 1995.

Other related papers by Hewings et al.

Krumme. G., Comments on Interregional Subcontracting Patterns and Bilateral Feedbacks," Journal of Regional Science, 10(2), August 1970, pp.237-242. (Abstract)

Metzler, L.A., A Multiple Region Theory of Income and Trade, Econometrica 18 (1950), 329-54.

Miller, Ronald E., Antonio Guccione, William J. Gillen and Peter D. Blair, "Interregional Feedbacks in Input-Output Models: The Least Upper Bound", Journal of Regional Science, Vol. 28, No. 3, August, 1988

Olfert, M.R. and Jack C. Stabler, Community Level Multipliers for Rural Development Initiatives, Growth and Change, 25(4), Fall 1994.

Olfert, M.R. and Jack C. Stabler, Multipliers in a Central Place Hierarchy, Growth and Change 30(2), Spring 1999.

Richardson, Harry, Input-Output Analysis and Regional Economics, London: Weidenfeld & Nicolson, 1972, pp.78-82.

Steele, D.B., A Numbers Game or the Return of the Regional Multipliers, Regional Studies, 6 (1972), pp.115-30.

Return to Econ & Bus Geog
2001 []