Analysis of the Economic Effects of Investment in the Tourism Industry of Razavi Khorasan Province: An Application of the Two-Region Input-Output Model

Document Type : Research Paper

Authors

1 Department of Tourism Economics, Iranian Academic Center for Education, Culture and Research (ACECR), Mashhad, Iran.

2 Faculty member of Iranian Academic Center for Education, Culture and Research (ACECR) of Khorasan Razavi, Department of Tourism Economics, Mashhad, Iran

Abstract

This research investigated the direct and indirect effects of an investment in tourism sub-sectors in Razavi Khorasan province on the value added of other economic sectors of Razavi Khorasan Province and other provinces by the input-output approach. Therefore, the FLQ-RAS method was developed to prepare the two-region input-output table of Razavi Khorasan Province and other national economies based on the input-output table of 2016. We used a non-statistical method to prepare the input-output coefficients and the two-region model. The results indicate that the simultaneous increase of 700 billion riyals in tourism-related sectors in the Razavi Khorasan province directly affects wholesale and retail activities, other ground transportation, and governmental human health activities. Also, in terms of increasing investment in every tourism activity, residential buildings create the most significant overall effect compared to other activities. In most cases, wholesale and retail activities, as well as other ground transportation, have the first and second ranks of influence from the increase in investment. Also, the actions of residential buildings, health activities related to government people, and provision of space have experienced the most direct effects from investment.

Keywords

Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 15 May 2023

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