News | 01 Nov 2016

Oxford Economists Develop a New Global Impact Model

globallinkages.pngEconomic impact assessments provide a clear insight into how a firms operations and interactions with suppliers generates economic activity. They capture how supply chains spread through an economy, enabling us to quantify a firm’s footprint.

Yet typically they only consider a firm’s operations and spending in one country. For some companies this may be ideal: for instance if they have a single location and spend little with suppliers in other economies. But for globally integrated businesses, such analysis does not capture the impact on a local economy in its entirety.

Traditionally a firm’s operations and suppliers outside of the main country of analysis, as well as trade impact they have on an economy, have been beyond the capacity of standard impact models. Such activities are known as ‘leakage’ from the analysis. These limitations have meant conventional impact studies inevitably understate a global company’s national economic contribution, although they still quantify important effects.

I used experience gained from conducting impact assessments over seven years for numerous corporations in a range of countries, together with knowledge of global trade data, to address this shortcoming. The result is a unique, fully integrated global impact model, mapping how industries in the 65 largest economies interact.

With this model we are able explore how a firm’s global supply chain creates economic activity throughout the world and how its impact criss-crosses the globe. This means Oxford Economics can comprehensively measure a globally integrated firm’s economic impact for the first time.

 

 

You may be interested in

Aerial view of Singapore business district and city at twilight

Post

Sneak preview: our new Asia Real Estate Service

The new Asia Real Estate Economics Service helps companies understand the implications of macroeconomic, geopolitical, financial and climate change on private and public real estate performance in Asia. The first globally consistent and independent set of real estate forecasts, the service offers regular analysis and commentary from our highly experienced team of real estate economists.

Find Out More

Post

Oxford Economics Launches Global Risk Service

Oxford Economics launches our Global Risk Service, a suite of data-driven and forward-looking tools that measure macro-economic and financial crises risks in 166 countries.

Find Out More
George street, Sydney

Post

Australia’s CAPEX falters in Q1, with cost inflation to test activity

Private new capital expenditure fell 0.3% q/q in Q1 2022, led lower by a fall in buildings and structures investment. The weak result is in part due to the impact of Omicron on labour availability, and the postponement of construction activity in flood affected areas. Machinery & equipment volumes rose in the quarter.

Find Out More