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Constructing Economic Base Models or Developing Countries: Lessons from a Case Study in Panama

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  • René C. Hinojosa

    (Urban Planning Program, Department of Geography, Michigan State University, East Lansing, Michigan 48824 USA)

  • Arturo J. Ríos

    (Regional University Center of Chiriqui, University of Panama, David, Chiriqui, Panama)

Abstract

The location quotient is a popular indirect method for the estimation of regional export activity. The appeal of the technique has extended to developing countries, but very little effort has been made to test, on empirical grounds, whether the extension is warranted. This article uses a region in Panama to examine the problems and limitations of estimating basic employment. Results from a survey of industries indicate that corrections to the standard formulation of the quotient are necessary and that shortcuts in the construction of the economic base model should be avoided.

Suggested Citation

  • René C. Hinojosa & Arturo J. Ríos, 1991. "Constructing Economic Base Models or Developing Countries: Lessons from a Case Study in Panama," International Regional Science Review, , vol. 14(2), pages 149-162, August.
    • Handle: RePEc:sae:inrsre:v:14:y:1991:i:2:p:149-162
    DOI: 10.1177/016001769101400203
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    References listed on IDEAS

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    1. John M. Mattila & Wilbur R. Thompson, 1955. "The Measurement of the Economic Base of the Metropolitan Area," Land Economics, University of Wisconsin Press, vol. 31(3), pages 215-228.
    2. Unknown, 1962. "Community Development and Economic Development," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 17(3), pages 1-2.
    3. Hewings, Geoffrey J. D., 1984. "The role of prior information in updating regional input-output models," Socio-Economic Planning Sciences, Elsevier, vol. 18(5), pages 319-336.
    4. Harold Brodsky & David E. Sarfaty, 1977. "Measuring the Urban Economic Base in a Developing Country," Land Economics, University of Wisconsin Press, vol. 53(4), pages 445-454.
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