Three and Four Region Multi-sector Linear Modelling Using UK Data: Some Preliminary Results

Scotland and Wales have relatively up-to-date, independently generated, IO tables. These can be separated out from a UK national IO table to construct an inter-regional table. We therefore undertake the detailed analysis at this three-region (Scotland, Wales and the Rest of the UK (RUK)) level, where the Rest of the UK is England and Northern Ireland. However, we also construct a more rudimentary four-region (Scotland, Wales, England and Ireland) set of IO and SAM accounts by constructing a separate Northern Ireland accounts. The inter-regional IO and SAM models are produced for the year 1999. This was determined by the availability of consistent data. In Section II we describe the construction of a three-region Input-Output model for the United Kingdom, which includes the regions of Scotland, Wales and the Rest of the UK (RUK). In Section III we extend the three-region model to construct an inter-regional Social Accounting Matrix. Section IV reports some results using the three-region IO and SAM models. In Section V, we generate a four-region IO and SAM model for the UK, which disaggregates Northern Ireland from the Rest of the UK, and provide some results using the four-region IO and SAM models. Section VI offers our conclusions.