Summary
The primary modeling tools used to analyze regional economic issues include econometric forecasting models, fixed price Input-Output (I-O) multi-sector models, Social Accounting Matrix (SAM) and Computable General Equilibrium (CGE) models. CGE models combine the advantages of econometric, I-O models and SAM strengthening the theoretical basis of the modeling effort and thus enabling more precise policy analysis. Current CGE literature includes models used to analyze international trade, tax reform, energy and environment issues etc. However, application of this technique on a regional scale is rare in the scientific literature. In this paper, a small regional computable general equilibrium model is constructed and applied to analyze the economic impact of constructing Tainan Science-Based Industrial Park located in the Southern Taiwan. The research results provide a valuable reference for decision-makers in formulating industrial and regional policies, as well as helping business managers with strategic planning.
See the full content of this document
Extract
The Development of a Computable General Equilibrium Model of the Economic Impact of a Science-Based Industrial Park in Taiwan
1. Introduction
Impact analysis can be defined as an assessment of change in overall economic activity as a rule of some special change in one or several economic activities (IMPLAN Group, 1996). Impact analysis in a region focuses on interaction between economic policy changes and the implications of these changes for the local economy. In particular, it may reflect local or national concern about the effect of change on a variety of actors or agents within the local economy, such as specific socioeconomic group, specific sectors, or specific locations. Changes in the level and distribution of local employment, income, sales, and wealth are often the target of analysts in the context of regional planning (Shaffer, 1989). There are several tools available to the analyst assess regional impacts of p...See the full content of this document
Sponsored links
