Multiplier effects of transport sectors in China's national economy: An input-output approach

To analyse the multiplier effects of transport sectors, the input-output approach was used to calculate output multipliers, gross value added multipliers, employment multipliers and income multipliers for China's four transport sectors from 2012 to 2020. The results show that of all the multiplier effects in China's transport sectors, the induced effects contribute the most, all close to 40%, and even more than 60% of the employment multipliers. Air transport has the highest output multiplier; rail transport has the highest gross value added multiplier, employment multiplier and income multiplier. The multipliers for rail transport are higher than those for road transport, and the multipliers for water transport are similar to those for road transport, so the current policy of restructuring China's transport industry will not have a negative impact on its economic effect. Furthermore, a comparative multiplier analysis with two European countries is conducted to assess the Chinese transport industry from an international perspective. The results of this paper are important for assessing the economic contribution of different transport sectors and providing a reference to formulate transport policies.