Page 45 - Special Topic Session (STS) - Volume 2

STS452 Nobuhiro O.
Figure 2 Employment by sector in urban area (left) and rural area (right)

On the contrary, the primary sector in the rural area is the main source of
labour supply to urban industries.
Next, Table 3 shows the outcome implemented by the model for
urbanisation. Each part of the table corresponds with the inverse matrix shown
2
in Table 1 and 2. The latest input-output data for 2015 was used in
combination with the labour account of the same year.

Table 3 Result of the model execution for 2015

Note: A unit of household consumption is yuan and employment in person.

First, since the households are incorporated into the model, each cell of
the multiplier is larger than the conventional Leontief inverse, and the total of
the column which is seen as the total backward linkage effect indicates 2.560
for primary, 4.255 for secondary, and 3.307 for tertiary industry respectively.
Next, the upper-right part of the table shows the output generated by a
unit increase in consumption induced by demographic change. The increase
in economically active population will induce the total output in the industry
to meet their increased consumption. We can see the total induced effects
which are the sum of the column, 128,180 yuan for urban areas and 57,871
yuan for rural areas. This shows that urban areas consumption raised by the

2 The data is provided as the format of so called import-competitive type. Each transaction
includes imported goods and services. This elimination work will be done in future research.
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