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Extending the FLQ formula: a location quotient-based interregional input–output framework

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  • Malte Jahn

Abstract

Extending the FLQ formula: a location quotient-based interregional input–output framework. Regional Studies. The regionalization of national input–output tables is a major issue in regional science as corresponding regional data are often unavailable. In this paper, a framework is developed to estimate intra- and interregional input–output tables. The intraregional estimates are based on the well-known FLQ method. The interregional estimates are constructed using gravity modelling to account for factors like geographic distance between regions. The derived (initial) estimates are embedded in an interregional accounting framework that ensures consistency of regional values with the national aggregates. The framework is applied to the German economy of 2010. The relationship between the FLQ formula and the estimated amount of interregional trade in intermediates, the amount of interregional cross-hauling, and the regional distribution of output multipliers is highlighted.

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  • Malte Jahn, 2017. "Extending the FLQ formula: a location quotient-based interregional input–output framework," Regional Studies, Taylor & Francis Journals, vol. 51(10), pages 1518-1529, October.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:10:p:1518-1529
    DOI: 10.1080/00343404.2016.1198471
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    Cited by:

    1. Hanspeter Wieland & Manfred Lenzen & Arne Geschke & Jacob Fry & Dominik Wiedenhofer & Nina Eisenmenger & Johannes Schenk & Stefan Giljum, 2022. "The PIOLab: Building global physical input–output tables in a virtual laboratory," Journal of Industrial Ecology, Yale University, vol. 26(3), pages 683-703, June.
    2. 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.
    3. 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.
    4. 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.
    5. Mattia Cai, 2021. "Doubly constrained gravity models for interregional trade estimation," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 455-474, April.

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