Industrial Structure and Water Use in Beijing-Tianjin-Hebei Region: A Multiplier Analysis

Abstract

This study investigates the regional economic structure of Beijing-Tianjin-Hebei region with focus on the impacts of water resources on the regional economic development. The multiplier model is used to analyze the effects of the regional water sector on the other accounts. The results show that 1) the regional water sector has limited effects on the regional economic output and on the other sectors, and 2) the region has a relatively reasonable economic structure regarding water use, but 3) the structure shows a labor- and capital- intensive economic feature rather than technology intensive feature. The policy implication is that the integration efforts in Beijing-Tianjin-Hebei region, which aimed at alleviating water scarcity stress and increasing regional sustainability, should concentrate on industrial structure adjustment towards technology advance.