Using Surveys of Business Expenditure to Draw Inferences about the Size of Regional Multipliers: A Case-study of Tourism in Northern Australia

Stoeckl, Natalie

doi:10.1080/00343400601142803

Cited by 12 publications

(9 citation statements)

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“…Much of this is due to scale: geographical (NT is significantly larger than the other regions); demographic (the Kimberley is far less populous than the other regions); and economic (two regions include major regional cities, Darwin in the NT and Cairns in FNQ, whereas the Kimberley includes no major city). Differences in scale impact the number and composition of businesses in each region, which impact the multipliers: if there are few businesses within a region, then there will be relatively little local “re‐spend”, and thus smaller multipliers (Stoeckl ). For our models, multipliers in the Kimberley are almost always smaller than in the other regions, whilst most (but not all) of the NT's multipliers are smaller than those of FNQ, which are in turn, smaller than multipliers associated with Australia as a whole [estimated to range from just over 2 for petroleum and coal products to 3.3 for wholesale trade (Australian Bureau of Statistics, )].…”

Section: Resultsmentioning

confidence: 99%

“…Computable general equilibrium (CGE) models are the theoretically desirable way in which to assess the regional economic impact of expenditures (Stoeckl ), as they explicitly account for dynamic economic interdependencies and relative price fluctuations (Gretton ). Unfortunately, we could find no existing CGE model equipped to address our particular research questions, and thus chose to adapt three, publicly available input–output (I‐O) models specifically developed for our case study regions.…”

Section: Models and Modelling Approachmentioning

confidence: 99%

“… National I‐O models cannot be used to estimate regional impacts as business expenditure patterns are likely to differ regionally: simplistically, the smaller and more remote a regional economy is, the smaller will be the regional economic impact of development in that area (Stoeckl ; The Allen Consulting Group, ). This is because total impact depends not only on how much is spent initially (the first‐round effects), but how these monies are subsequently re‐spent.…”

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confidence: 99%

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Indigenous land and sea management programs: Can they promote regional development and help “close the (income) gap”?

Jarvis

Stoeckl

Hill

et al. 2018

Aust J Social Issues

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Throughout the world, there is growing recognition of the important role Indigenous people play in natural resource management and conservation. Indigenous Land and Sea Management Programs (ILSMPs; which provide funds to Indigenous people to support Indigenous land management activities) are also known to generate social and economic benefits, although relative few of these co-benefits have been quantified. Using northern Australia as a case study, we analysed data on ILSMP expenditure within three regional input-output tables, learning more about the size and distribution of their associated regional economic benefits. We found ILSMPs make a significant contribution to regional economies-with multipliers commonly exceeding that of other key regional industries such as agriculture and mining. We also found ILSMP expenditures make a larger contribution to Indigenous household incomes than they do to non-Indigenous incomes-thus helping to close the (income) gap. They will continue to do so, provided the proportion of ILSMP money spent on Indigenous (compared to non-Indigenous) incomes does not fall below a threshold amount.Rather than finding evidence of a trade-off between socioecological and financial/economic goals, our results suggest ILSMPs, known for their ecological importance, can also make a vitally important contribution to economic development in rural areas.Association.F I G U R E 1 Study area showing geographical areas covered by our three (adapted) I-O models, the location of organisations receiving ILSMP funding during 2014/15 and the main population centres. Boundaries of Daly River (NT) and Mitchell River (QLD) catchments also shown (we later compare our I-O multipliers with those generated from models developed for these regions). Map courtesy of Wolf Stoeckl

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Section: Resultsmentioning

confidence: 99%

Section: Models and Modelling Approachmentioning

confidence: 99%

mentioning

confidence: 99%

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Indigenous land and sea management programs: Can they promote regional development and help “close the (income) gap”?

Jarvis

Stoeckl

Hill

et al. 2018

Aust J Social Issues

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“…Regional economic multipliers (simplistically, the total money flowing to a region following an external stimulus, divided by initial expenditure on the stimulus) are almost always small in rural and/or remote areas (Stoeckl 2007). In the case of remote areas, the benefits of investment in some industries that flow to people in urban regions outweigh the benefits flowing to those living in the regions in which production occurs (Rolfe et al 2011).…”

Section: Conceptualising the Problemmentioning

confidence: 99%

Are Indigenous land and sea management programs a pathway to Indigenous economic independence?

et al. 2018

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This paper focuses on Indigenous business development, an under-researched co-benefit associated with investment in Indigenous land and sea management programs (ILSMPs) in northern Australia. More than 65% of ILSMPs undertake commercial activities that generate revenue and create jobs. In addition to generating environmental benefits, ILSMPs thus also generate economic benefits (co-benefits) that support Indigenous aspirations and help to deliver multiple government objectives. We outline key features of northern Australian economies, identifying factors that differentiate them from Western urbanised economies. We discuss literature highlighting that, if the aim is to stimulate (short-term) economic development in northern Indigenous economies, then the requirement is to stimulate demand for goods and services that are produced by Aboriginal and Torres Strait Islander people (herein referred to as Indigenous people), and which generate benefits that align with the goals and aspirations of Indigenous people. We also discuss literature demonstrating the importance of promoting a socio-cultural environment that stimulates creativity, which is a core driver of innovation, business development and long-term development. ILSMPs have characteristics suggestive of an ability to kick-start self-sustaining growth cycles, but previous research has not investigated this. Using 8 years of data relating to Indigenous businesses that are registered with the Office of the Registrar of Indigenous Corporations (a subset of all Indigenous businesses), we use statistical tests (Granger causality tests) to check whether ILSMP expenditure in the first year has a positive impact on Indigenous business activity in subsequent years. This analysis (of admittedly imperfect data) produces evidence to support the proposition that expenditure on ILSMPs generates positive spillovers for Indigenous businesses (even those not engaged in land management), albeit with a 3-year lag. ILSMPs have been shown to be an appropriate mechanism for achieving a wide range of short-term benefits; our research suggests they may also work as catalysts for Indigenous business development, fostering sustainable economic independence.

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“…The total regional economic impact of sportfishing-based tourism ventures will thus depend on (i) the amount of money that tourists spend in the local area and (ii) any additional knock-on benefits. If there are no local businesses or local workers, then there will be no opportunity for tourism ventures to 'respend' tourist revenues within local communities by hiring workers or making local purchases (Ashley 2000; Zapata et al 2011), so there will be few, if any, knock-on benefits (Mbaiwa 2005;Stoeckl 2007;Fedler and Hayes 2008). Consequently, providing opportunities for local people to develop complementary ventures that can generate knock-on benefits will often be integral to the long-term success of sportfishing ventures and their support of local livelihoods.…”

Section: Maximizing Economic Benefits and Developing Business In Devementioning

confidence: 99%

Sportfisheries, conservation and sustainable livelihoods: a multidisciplinary guide to developing best practice

et al. 2015

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Ecotourism ventures in developing countries are often among the few alternatives for enhancing sustainable livelihoods without altering traditional ways of life. The best way forward is to continually develop and implement best practice guidelines and, in particular, to flexibly develop them to suit individual cases. We conduct a multidisciplinary assessment of best practice guidelines required to develop and sustain sportfishing tourism in developing countries, while enhancing local livelihoods and promoting environmental stewardship. In general, best practice guidelines should be developed around a sustainable livelihood framework that includes short‐term coping mechanisms and longer‐term capacity building. Sportfishing development that conforms to ecological and socially orientated criteria, founded on site‐specific research that captures local environmental and social complexities, has the potential to provide mutual benefits to tourists and local people, fuelling community development and enhancing the cultural experience of tourists. Best practice guidelines for sportfishing that do not address these dimensions are unlikely to result in a viable industry. Given the current interest and growth of sportfishing in developing countries, the proposed guidelines can help a range of end users manage, conserve and maximize livelihood benefits from their fishery.

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Using Surveys of Business Expenditure to Draw Inferences about the Size of Regional Multipliers: A Case-study of Tourism in Northern Australia

Cited by 12 publications

References 13 publications

Indigenous land and sea management programs: Can they promote regional development and help “close the (income) gap”?

Indigenous land and sea management programs: Can they promote regional development and help “close the (income) gap”?

Are Indigenous land and sea management programs a pathway to Indigenous economic independence?

Sportfisheries, conservation and sustainable livelihoods: a multidisciplinary guide to developing best practice

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