ABSTRACT
The notion of the economic base model is to identify, either in income or employment terms, that proportion of activity in a region that is dependent upon markets outside the region and the proportion that is dependent upon intraregional markets. In a sense, the theory represents an adaptation of the 'export or die' feeling prevalent in the thinking of some of the international trade literature. One of the universal problems regional science faces continually is the dearth of subnational data. Implementation of even a simple economic base model of the type requires data inputs that are often too demanding for available resources. In the UK a number of writers have tried to provide estimates of the values of regional multipliers. Recognizing the importance of the different interregional and interindustrial linkages, Henderson and Krueger devised a more complicated model to make forecasts of economic activity in the Upper Midwest States (UMW) of the USA.
