Economic Interdependence Within the Chicago Metropolitan Area: A Miyazawa Analysis

The present study explores the nature and strength of economic interdependence between inner-city communities and suburbs within the Chicago metropolitan area. Employing Miyazawa's extended input-output framework, a multiregional model is used to investigate the interdependence of income formation and output generation. The metropolitan area is divided into four regions and particular attention is directed to predominantly minority areas on the south and west sides of the city of Chicago. The region-to-region impacts of trade flows and their associated multipliers proved to be far less important in determining the strength of interregional interdependence in contrast to income flows derived from journey-to-work movements. The interrelational income multiplier revealed considerable interdependence between regions although the strength of this interdependence was asymmetric.