OECD Culture and Local Development.pdf - PACA

ANNEX 1
X = (I - A) -1 . Y
will be transformed into
X = (I - K*. A) -1 . Y
where K* is a matrix in which the diagonal values represent the relative
competitiveness indices for imports, and hence reductions in local intermediate
consumption.
We can then deduce the effect of a shift in tourist spending DT in terms of changes
in local output P, given here by:
P = (I - K*. A) -1 . T
Finally, if we have a matrix of employment coefficients by product E, we can
deduce from this change in expenditure the corresponding changes in employment:
L = E.(I - K*. A) -1 . T
The advantage of this method is that we can define employment volumes
accurately, and show whether the skills required for responding to an increase in tourism
spending can be supplied or not within the territory, and what vocational training
strategies might be necessary to fill any gaps.
CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005 181