This study introduces the basic concepts of economic base theory and the estimating methods of basic and nonbasic activities and analyzes the economic base of Buyong-myon, Chongwon County using three non-direct methods. The data set for this study is ...
This study introduces the basic concepts of economic base theory and the estimating methods of basic and nonbasic activities and analyzes the economic base of Buyong-myon, Chongwon County using three non-direct methods. The data set for this study is adopted from the Report on the Census on Basic Characteristics of Establishments published in 1999 by Chongwon County. It is found from this study that the economic base multipliers estimated from the three non-direct methods are quite different but still within the range of multipliers reported from the prior study applying direct survey method. There are some limitations in applying non-direct methods for economic base estimation. However, if we use more fractionized sectoral data and incommuter/outcommuter data, we can obtain more reliable multiplier estimates. It is also encouraged to verify the validity of multiplier estimates obtained from non-direct methods by comparing with the results from direct survey method.