The paper presents a regional computable general equilibrium model, developed for analyzing the development policies in Chile, specifically in the Bío Bío region. The presented model facilitates the evaluation of extreme scenarios that can affect the economic performance of the region, such as a fishing crisis. This being said, the author argues that the model sheds light on the effects of the current fishing crises in the region, which could lead to greater specialization in the production structure in the industries of Bío Bío. To evaluate these approaches, the author introduces a social accounting matrix for the Bío Bío built by Mardones and Saavedra (2011).
The paper is organized as follows. After a brief introduction, the second section provides details of the proposed model and the regional social accounting matrix used. Meanwhile, the third section describes the application of the model to the region of Bio Bio, in order to determine the effects of fishing crises on regional economic development. Finally, the fourth section presents the main findings of the investigation.
The author concludes by arguing that in the context of a fishing crisis, sectors which are not strongly related to the fishing industry can be deeply affected through indirect channels, which can be difficult to identify without a general equilibrium approach.