Starting point for the research project is the Economic Impact Study (EIS), which is based on Input-Output Analysis. This instrument allows for the quantification of both direct and indirect effects of a sector, in terms of value added, employment and backflow to the government. By closing the Input-Output model for labour income, induced spending effects can be calculated as well.
The European Economic Impact Study (E-EIS) may provide policy makers with a tool to quantify the economic significance of the shipping sector to both individual countries in Europe and at European Union level.
The E-EIS Project has four main objectives:
- The description of methodology for the assessment of the economic impact of the shipping sector on the member states' and the European Union's economy. A framework will be developed which can be used for all EU member states
- The construction of an intercountry Input-Output table for the entire European Union, focusing on Belgium, Germany, Italy, the Netherlands and the United Kingdom. The shipping sector and its sub-sectors need to be defined and to this end data is collected by means of a 'bottom-up approach'
- The quantitative evaluation of the shipping sector in Belgium, Germany, Italy, the Netherlands and the United Kingdom. The relations between the shipping sector and other sectors of the economy will be analysed, using the E-EIS methodology, as well as the total economic impact of the shipping sector in terms of value added, employment and backflow to the government, as well as induced spending effects
- The development of a set of relevant policy scenarios and the assessment of their potential effects. The economic impact of a number of policy scenarios will be quantified, using the E-EIS methodology
Case studies are carried out for the shipping sector amongst Key Players in a selected number of EU member states. Furthermore, the entire shipping sector in these countries is covered by means of a Short Questionnaire. Both tools aim to collect both cost structure data and strategic information.
Initially, the shipping industry in Belgium, Germany, Italy, the Netherlands and the United Kingdom will be studied. Additional EU countries may be included at a later stage.
The European Economic Impact Study for the shipping sector was launched in February 1997. The final report will be presented in January 1999.