Measuring Air Transport Industry Linkages: Input-Output Analysis

• Název práce v češtině: Hodnocení významu letecké přepravy: input-output analýza
• Název v anglickém jazyce: Measuring Air Transport Industry Linkages: Input-Output Analysis
• Klíčová slova: Input-output analýza, metoda hypotetické extrakce, Leontiefův model, Ghoshův model, Světové input-output tabulky (World Input-Output Tables), letecká doprava, mezisektorové vazby
• Klíčová slova anglicky: Input-output analysis, hypothetical extraction method, Leontief model, Ghosh model, World Input-Output Tables, air transport, inter-industry linkages
• Akademický rok vypsání: 2018/2019
• Typ práce: bakalářská práce
• Jazyk práce: angličtina
• Ústav: Institut ekonomických studií (23-IES)
• Vedoucí / školitel: Ing. Vilém Semerák, M.A., Ph.D.
• Řešitel: skrytý - zadáno vedoucím/školitelem
• Datum přihlášení: 20.08.2019
• Datum zadání: 21.08.2019
• Datum a čas obhajoby: 08.06.2021 09:00
• Místo konání obhajoby: Opletalova - Opletalova 26
• Datum odevzdání elektronické podoby: 04.05.2021
• Datum proběhlé obhajoby: 08.06.2021
• Oponenti: Mgr. Bc. Vít Macháček, Ph.D.

Seznam odborné literatury

Bibliography
Dietzenbacher, E. et al., 2013. The Construction Of World Input-Output Tables In The Wiod Project. Economic Systems Research, 25(1), p.71.

Dietzenbacher, E. & Lahr, M.L., 2013. Expanding Extractions. Economic Systems Research, 25(3), pp.341-360. Available at: https://www.tandfonline.com/doi/full/10.1080/09535314.2013.774266 [Accessed August 17, 2020].

Dietzenbacher, E., van Burken, B. & Kondo, Y., 2019. Hypothetical extractions from a global perspective. Economic Systems Research, 31(4), pp.505-519.

Guerra, A.-I. & Sancho, F., 2010. Measuring energy linkages with the hypothetical extraction method: An application to Spain. Energy Economics, 32(4), pp.831-837.

Miller, R.E. & Blair, P.D., 2009. Input-Output Analysis: Foundations and Extensions 2nd ed., Cambridge: Cambridge University Press.

Miller, R.E. & Lahr, M.L., 2001. A taxonomy of extractions. Regional Science Perspectives in Economic Analysis, 249, pp.407-441.

Timmer, M.P. et al., 2015. An Illustrated User Guide to the World Input-Output Database: the Case of Global Automotive Production. Review of International Economics, 23(3), pp.575-605. Available at: http://doi.wiley.com/10.1111/roie.12178 [Accessed October 23, 2020].

Tukker, A. & Dietzenbacher, E., 2013. Global Multiregional Input-Output Frameworks: An Introduction And Outlook. Economic Systems Research, 25(1)

Předběžná náplň práce v anglickém jazyce

Research question and motivation

At the beginning of 2020, news about potential outbreak of a new coronavirus (later called Covid-19 or simply Covid) spread across the globe. In order to “flatten the curve”, world’s governments came up with unprecedented social distancing measures. Together with people’s fear and panic, these restrictions have had devastating effect on the world’s economy and especially on industry sectors that depend on people’s movement. Not only in Europe was air-transport one of the most affected industries for which the European Commission reported over 60% decrease in the number of passengers (for the most affected airports) for March 2020 (YoY comparison).

This extreme downfall in air-transport volume brings up a question: What would happen to the rest of the economy if there was a complete shutdown of the air transportation industry. Moreover, how would the shock spread over the economy?

In my thesis, I will try to answer the precedent questions using the Hypothetical Extraction Method (HEM) that was used in the past to measure inter-industry linkages. As an example of such analysis, let me mention the paper written by Guerra and Sancho (2010) in which they show that the Electricity sector is stronger interconnected with the whole Energy industry than other energy-related sub-sectors, such as Extraction of gas or Extraction of coal. Consequently, the authors suggest the Electricity sector to be the “key sector” for energy efficiency policies.

I further describe the HEM in the upcoming Methodology section.

Contribution

As the HEM extracts an industry from the economy, it can be useful, for example, for policymakers to make well-informed relevant decisions in case of an industry shutdown. A potential policymaker could prepare a support for industries affected by other industry’s closedown.

To support my statement, I can relate, among others, again to Guerra and Sancho (2010) who used HEM to suggest which sector is the most effective to regulate in order to increase energy efficiency in the Spanish economy.

Methodology

Firstly, it is necessary to state the dataset used in this thesis. HEM works based on Input-Output (IO) tables. Based on an overview conducted by Tukker and Dietzenbacher (2013), tables available on WOID’s website (woid.org) are adequate for this task. I will use the 2014 release of World Input-Output Tables (WOIT) as they are the most recent ones accessible. Moreover, in favour of the WOIT speaks the fact that they diversify between singular transportation types (Land, Water, and Air Transport) which is crucial for the topic, as well as the fact, that they are described transparently and in detail e.g. by Dietzenbacher et al. (2013).

To evaluate the given dataset, Input-Output analysis will be conducted based (not exclusively) on the book Input-Output Analysis: Foundations and Extensions by Miller and Blair (2009) and based on the “Illustrated User Guide to the World Input–Output Database” presented by Timmer et al. (2015).

As mentioned above the Hypothetical Extraction Method (HEM) will be used. HEM measures inter-industry linkages simply put in following steps: HEM takes into consideration a situation in which one industry does not produce anymore. It estimates new level of outputs through the economy. By taking the difference between the initial outputs and the HEM outputs it enables to measure the linkages of the extracted industry (Dietzenbacher et al. 2019).

Further, I will assess potential use of HEM’s adaption – the Global Extraction Method (GEM) described by Dietzenbacher et al. (2019) - and compare the results, if possible.

Finally, I will apply the above-mentioned methods to extract the Czech Air Transport industry and report the results.

Outline
1) Introduction
2) Literature review and hypotheses
3) Methodology and data
4) Results
5) Conclusion