Economic multipliers for Colombia: A new visualization tool

[+] Juan C. Duque1 , Alejandro Betancourt2 , Christian Posso3

Welcome to RiSE's new interactive tool for visualizing the interindustry dynamics in Colombian economy. We hope you enjoy this tool!


We use the product utilization matrix for Colombia 2006 (base 2005) prepared by the National Administrative Department of Statistic (DANE) to measure the impact on the global economy (employment, income and output) that results from a demand shock of 1.000 million Colombian pesos (COP), from 2011, in a given industry (This impact is known as Leontief Multiplier). The product utilization matrix uses a 61-industry classification based on the two-digit CIIU (rev.3) categories. The information about total employment is obtained from the Continuous Household Survey (first semester of 2006).


A unique feature of this tool is the possibility to disaggregate the impacts on employment into four mayor categories: (a) salaried non-qualified, (b) salaried qualified, (c) non-salaried non-qualified, and (d) non-salaried qualified. It also specifies which part of the new generated employments is due to direct effects, and which part is due to indirect effects.

The graph below represents Colombian interindustry relationships, where each node symbolizes an economic industry. The links between nodes represent the most important interindustry relationships according to the algorithm for industry clusters identification devised by Duque and Rey (2008) (see also Duque, Rey and Gomez (2009) for more details about this methodology). The color of the nodes represents the value of the multiplier of each industry, which ranges from black to light red, such that the lighter the red the higher the value of the multiplier.


NOTE 1: Industry "Domestic Services" behaves as an "island" because it shows no relationships with other industries. Industry "Waste products" was removed because it reports no outputs, which results in a singular matrix. Market and non-market Education Services were merged, as well as market and non-market Social and Health services.


NOTE 2: Both payrolls and employment include formal and informal economic activities.


NOTE 3: All monetary values are reported as prices from 2011.


To use this tool go through the following steps:


1. Select a multiplier:

You can choose one of three different multipliers:


  • Output multiplier: Measures (in thousand of COP) the change in the gross output of the global economy when there is a one thousand COP’s worth change of final demand for a given industry.
  • Employment: Measures (in number of jobs) the change in the total employment of the global economy when there is a one thousand COP’s worth change of final demand for a given industry. The total number of employments can be disaggregated into the following categories:
    • Salaried non-qualified
    • Salaried qualified
    • Non-salaried non-qualified
    • Non-Salaried qualified
  • Payrolls: Measures (in thousand of COP) the changes in the payroll payments of the local economy when there is a one thousand COP’s worth change of final demand for a given industry.

2. Find an industry (this step is optional):

You can locate an industry in the graph by choosing it from the following list:



The selected industry will stand out in the network. You can also identify an industry by locating the cursor on any node in the network. You will see an emerging box with the name of the industry.


3. See how a demand impact spreads in the global economy :

Doble-click on an industry (node) to simulate an increase of 1 thousand million in current COP from 2006 in the demand for that industry (hereafter COPs will be reported in current prices from 2006). Once an industry is clicked you will see how the impact spreads throughout the other industries in the economy.


Below the graph you will find more useful information about the industry that you are impacting.


Legend

Multiplier level by industry (Color)

+ Publication and Consulting

Releated Publications

Take a look to some of the publications coauthored by our members in which we develop new methods for industry clusters identification.

Releated consulting projects

Consulting projects in which we combine techniques such as input-output analysis and system dynamics.

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+ Information

Developer Team

Juan C. Duque, Alejandro Betancourt, Christian Posso.

Contact Us

Your comments and suggestions are welcome.

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