Income Interdependence in the UK Multi-Regional Economy: A Meso-Level Analysis

André Carrascal-Incera, Geoffrey J.D. Hewings

Research output: Contribution to journalArticlepeer-review

Abstract

Consumer expenditures in the United Kingdom account for over 50% of Gross Domestic Product on the expenditure side, yet their impact on economic activity is often overshadowed by attention to technological change, value chain analysis and especially international trade. In this paper, a recently developed interregional model of the UK economy, SEIM (Socio-Economic Impact Model) will be used to provide some parallel perspectives to the role of interregional trade in goods and services by focusing on the interregional structure and impact of income and expenditures by households. Drawing on the original contributions of Miyazawa (1976) to highlight the contribution and structure of income interdependence complemented by interpretations offered by average propagation length, field of influence, and feedback loop analyses. The findings reveal the nature and strength of asymmetries in the structure of income formation and their impacts across the multiregional system. While there is only modest variation in aggregate income propagation by region, the accumulation of income is dominated by regions in the London area and secondarily by other metropolitan areas providing a source of explanation for the sustained income inequalities that have characterized the UK economy for almost a century.

Original languageEnglish (US)
Pages (from-to)591-621
Number of pages31
JournalInternational Regional Science Review
Volume47
Issue number5-6
Early online dateOct 8 2022
DOIs
StatePublished - Nov 2024

Keywords

  • Income interdependence
  • Miyazawa
  • UK multiregional model: Feedback loops
  • average propagation lengths
  • fields of influence

ASJC Scopus subject areas

  • General Environmental Science
  • General Social Sciences

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