Using the Leontief Matrix to Estimate the Impact of Investments Upon the Global Output

Romanian Journal of Economic Forecasting, Vol. 13, No. 2, pp. 176-187, 2010

11 Pages Posted: 8 Jul 2010

See all articles by Emilian Dobrescu

Emilian Dobrescu

Romanian Academy - National Institute of Economic Research, Romania

Viorel Gaftea

Section: Science and technology of the information - Romanian Academy

Cornelia Scutaru

Independent

Date Written: April 12, 2010

Abstract

The study presents in the first chapter the applied methodology and the data used for the empirical research. The economic activities were grouped into 10 sectors by aggregating the extended input-output tables for Romania (with 105 branches). The chosen reference year is 2007 - the last year for which such statistical recordings were available.

The second chapter examines some of the Romanian economy’s structural features revealed by the matrices A and (I-A)-1, insisting on the driving effects of interdependencies (direct and indirect) generated by cross-sector productive flows.

The third chapter focuses on the impact of gross fixed capital formation (GFCF) upon the output. On the one hand, the implications of changes in volume are estimated (for example, data on 2007 are recalculated for a variation of /-5% in the GFCF). On the other hand, the influence of the sectoral structure of the indicator in question is quantified with the help of three different macroeconomic simulations. Further possible developments of the current investigation are discussed at the end of the paper.

Keywords: input-output analysis, multipliers, macroeconomic simulations

JEL Classification: C67

Suggested Citation

Dobrescu, Emilian and Gaftea, Viorel Nicolae and Scutaru, Cornelia, Using the Leontief Matrix to Estimate the Impact of Investments Upon the Global Output (April 12, 2010). Romanian Journal of Economic Forecasting, Vol. 13, No. 2, pp. 176-187, 2010, Available at SSRN: https://ssrn.com/abstract=1635743

Emilian Dobrescu (Contact Author)

Romanian Academy - National Institute of Economic Research, Romania ( email )

Str. Uruguay nr.2
BUCURESTI 1, 011445
Romania
+40722357057 (Phone)

HOME PAGE: http://www.ince.ro/

Viorel Nicolae Gaftea

Section: Science and technology of the information - Romanian Academy ( email )

1Calea Victoriei 125, Sector 1
Bucharest, 010071
Romania

Cornelia Scutaru

Independent ( email )

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