Bücher von J.H.F. Schilderinck

The Tilburg Institute of Economics - Institute of the Economic Faculty of the Tilburg University - proposes itself to publish results of economic research taking part in the F acul ty . To facilitate the choice of the potential reader, every publication will be marked by the department, where the publication took its origin. As Mr. Schilderinck's 'Factor Analysis' applied to developed and developing countries, is a result of research in the Econometric Department, it is mark­ ed Econometrics. Every publication will be published under the supervision of the head of the department. For this reason this preface is written by the head of the Econometric Department. Mr. Schilderinck's study forms an introduction to a larger project of research, which proposes itself to develop methods of analysis, which try to eliminate the difficulties of multi-collinearity and the arbitrariness of the introduction of lags in regression analysis. This study applies the method of factor analysis to statistical material collected by the Institute of Development Problems of our University. Prof. Dr. J. J. J. Dalmulder Head of Department of Econometrics v Contents PREFACE. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . v . . . . . INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . .. . . IX . . . 1. AIM OF FACTOR ANALYSIS . . . . . . . . . . . . . . . . . . . . . 3 2. THE METHOD OF FACTOR ANALYSIS. 3 2.1 Normalisation of the variables . . . 4 2.2 Correlation and variance in factor analysis . 5 2.3 The model of the factor analysis 2.4 Solution of the model ..... . 9 2.5 Interpretation of the final aspects . 17 3. APPLICATION OF FACTOR ANALYSIS TO DATA FROM DEVELOPING COUNTRIES . . . . . . . . . . . . . . . .. . . 22 . .

This book deals with the methods and practical uses of regression and factor analysis. Besides the model for the Netherlands published here, the models for Belgium, Italy, West Germany and the United Kingdom are ready for linking and for publishing later on.

In this book input-output analysis is applied to the regional economy of The Netherlands. The re~ults are based on a publication of The Netherlands Central Bureau of Statistics: Regional Accounts 1960, The Hague, Staatsuitgeverij, 1968. Dr. Schilderinck and Mr. Sinner call special attention to the structure which are concealed in the cumulated primary costs of the final demand categories. Part I of the book deals particularly with a survey of this feature of input-output analysis. Part II starts with comparing the production structure of each industry in the eleven provinces of The Netherlands by means of semi-regional tables. Next, authors analyse the structure of the induced income resulting from a surplus or deficit of each industry on current final transactions per province. Thanks to its methodical elaboration the book is a valuable guide to those confronted with the problems of regional economic analysis. J. J. J. Dalmulder Contents FOREWORD IX LIST OF TABLES XI PART ONE: THE INPUT-OUTPUT TABLE AS AN INSTRUMENT OF ANALYSIS 1 List of symbols 3 1. Introduction 5 2. The input-output table 9 3. Coefficients of the input-output table 11 3. 1 Technical coefficients 11 3. 2 Interdependence coefficients and cumulated production coef- cients 12 3. 3 Input coefficients of cumulated production 15 3. 4 Input coefficients of final demand 17 4. The example of a simple economic system 20 4. 1 The input-output table and the technical coefficients 20 4.