Impact Study on Social Accounting Matrix by Intrabusiness Analysis

Abstract

According to the current concerns about social welfare and environmental protection, integrated in a model assimilated to intrabusiness relations, our research started from the analysis of the initial model SAM, which will be transformed in order to develop the SAMI model under six research objectives. The need of improving SAM matrix started to connect it directly to the regional economic systems and continued to a new approach on Input-Output Analysis. Nowadays, SAM describes the intraregional connections between regional economic actors using the role of different income categories. Moreover, SAM can quantify different regional multipliers. All deficiencies previously identified in connection to SAM model have been reviewed and resolved within the proposed SAMI model by the authors of this paper. The purpose of this research is the launch of an absolutely new mathematical model (SAMI) and its practical testing at regional level. This model is able to systematize the links between the local and regional businesses, under the matrix (SAMI) flow, for all kinds of companies and to assist the regional decision, as well. Czamanski was not able to escape from the input-output prison’s approach. This is why he continued to use the linear interdependencies between the industries, economic sectors and economic actors. The income is able only to approximate the individuals and other economic actors’ welfare. If the increase in the average and aggregate income is doubled by an unfair distribution of income in two countries which have the same average income, the effects on welfare vary a lot. A relatively similar effect comes from the government policy differences in income distribution and redistribution.