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Estimating Regional Input Coefficients and Multipliers: The Use of FLQ is Not a Gamble

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  • Anthony T. Flegg
  • Timo Tohmo

Abstract

F legg A. T. and T ohmo T. Estimating regional input coefficients and multipliers: the use of FLQ is not a gamble, Regional Studies . This paper re-examines the Finnish evidence presented by Lehtonen and Tykkyl�inen on the use of location quotients (LQs) in estimating regional input coefficients and multipliers. They argue that the choice of an LQ-based method is a gamble and that there is no single method that can be recommended for general use. It is contended here that this evidence is erroneous and that the FLQ (Flegg's location quotient) yields results far superior to those from competing formulae, so it should provide a satisfactory way of generating an initial set of input coefficients. The choice of a value for the parameter δ is also examined.

Suggested Citation

  • Anthony T. Flegg & Timo Tohmo, 2016. "Estimating Regional Input Coefficients and Multipliers: The Use of FLQ is Not a Gamble," Regional Studies, Taylor & Francis Journals, vol. 50(2), pages 310-325, February.
    • Handle: RePEc:taf:regstd:v:50:y:2016:i:2:p:310-325
    DOI: 10.1080/00343404.2014.901499
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    References listed on IDEAS

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    1. Tuomas Louhela, 2006. "Estimation of Interregional Trade for Finnish Regions in 1996 and 2002 - Freight Flow and Gravity Approaches," ERSA conference papers ersa06p114, European Regional Science Association.
    2. Kauppila, Jari, 1999. "Estimating Interregional Trade Flows in Finland 1996," ERSA conference papers ersa99pa066, European Regional Science Association.
    3. Anthony T. Flegg & Leonardo J. Mastronardi & Carlos A. Romero, 2014. "Empirical evidence on the use of the FLQ formula for regionalizing national input-output tables: The case of the Province of C¨®rdoba, Argentina," Working Papers 20141406, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
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    Cited by:

    1. Andrzej Toroj, 2018. "Generation of regional input-output tables: a spatial econometric approach with illustrative simulations for France,Germany and Poland," KAE Working Papers 2018-037, Warsaw School of Economics, Collegium of Economic Analysis.
    2. Yongke Yuan & Yitong Wang & Jialin Li & Mengwan Zhang, 2023. "Input-output Table and Input-output Model of Import and Export Internalization," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-15.
    3. Anthony T. Flegg & Guiseppe R. Lamonica & Francesco M. Chelli & Maria C. Recchioni & Timo Tohmo, 2021. "A new approach to modelling the input–output structure of regional economies using non-survey methods," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-31, December.
    4. Standardi, Gabriele & Turdyeva, Natalia, 2019. "Testing a methodology to split a national SAM and compute intra-national trade flows: an application for the Russian regions," Conference papers 333050, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Lankhuizen, Maureen & Boonstra, Harm Jan & de Blois, Chris, 2020. "Unpacking freight – Identifying conditions driving regional freight transport in statistics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 415-435.
    6. Michael L. Lahr & João Pedro Ferreira & Johannes R. Többen, 2020. "Intraregional trade shares for goods‐producing industries: RPC estimates using EU data," Papers in Regional Science, Wiley Blackwell, vol. 99(6), pages 1583-1605, December.
    7. Clio Ciaschini & Margherita Carlucci & Francesco Maria Chelli & Giuseppe Ricciardo Lamonica & Luca Salvati, 2022. "The Industrial Pattern of Italian Regions: A Disaggregated Sectoral Analysis Based on Input–Output Tables," Economies, MDPI, vol. 10(12), pages 1-22, November.
    8. Xesús Pereira-López & Napoleón Guillermo Sánchez-Chóez & Melchor Fernández-Fernández, 2021. "Performance of bidimensional location quotients for constructing input–output tables," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-16, December.
    9. José Daniel Buendía Azorín & Rubén Martínez Alpañez & Maria del Mar Sánchez de la Vega, 2022. "A new proposal to model regional input–output structures using location quotients. An application to Korean and Spanish regions," Papers in Regional Science, Wiley Blackwell, vol. 101(5), pages 1219-1237, October.
    10. Marek Radvanský & Ivan Lichner, 2021. "An alternative approach to the construction of multi-regional input–output tables of the Czech Republic: application of the CHARM method," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(4), pages 1083-1111, November.
    11. Loizou, Efstratios & Karelakis, Christos & Galanopoulos, Konstantinos & Mattas, Konstadinos, 2019. "The role of agriculture as a development tool for a regional economy," Agricultural Systems, Elsevier, vol. 173(C), pages 482-490.

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