A Multi-Sector Programming Model for Regional Planning in Pakistan

Azizur Rahman Khan

Abstract


This article presents the outline of a multi-sector,
optimizing model for inter¬regional planning and uses it to analyse
Pakistan's Third Five-Year Plan (1965-70). This is an interregional (as
distinguished from a national) model in so far as it recognizes the
existence of economic regions within the nation and ex¬plicitly takes
into account the interregional trade flows. Another aspect of a
multi-region economy that the model reflects is that in planning for
optimization the model enables the planners to maximize some objective
which is a function not only of the value of national income or
consumption but also of their distri¬bution between the regions. This is
a multi-sector or detailed planning model. The economy of each re¬gion
is divided into a number of producing sectors. The model takes
explicitly into account the intersectoral flows. In doing so, the model
reflects the implications of the di fferences in regional technologies
and behaviour. A given consumption target would mean different vectors
of consumer goods in diffe¬rent regions be cause consumption patterns
are different between regions. A given final demand vector would mean
different sectoral output levels and diffe¬rent sectoral allocation of
investment in the two regions because the technolo¬gical relations are
different. The model is able to spell out the implications of all these
factors by relating the regional and sectoral allocation of investment
and foreign exchange to location of demand.

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DOI: https://doi.org/10.30541/v7i1pp.29-65

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