IDEAS home Printed from https://ideas.repec.org/p/rri/wpaper/2006wp04.html
   My bibliography  Save this paper

Examining and Evaluating Aggregation Scale Effects on Interregional Commodity by Industry Trade Flow Estimates

Author

Listed:
  • Walter Schwarm

    (Department of Economics, California State University-Sacramento)

  • Randall Jackson

    (Regional Research Institute, West Virginia University)

Abstract

This study tests the implementation of interindustry transaction flows in a national system of economic regions derived from an interregional accounting framework and initial information on interregional shipments. The interregional flows connecting states are estimated using a method based on the Commodity Flow Survey data published by the Bureau of Transportation Statistics, which adjusts the estimated interregional SAM to insure the integrity of intraregional and system-wide, national accounts. The resulting US interregional framework describes flows within and among the 51 regions We examine results of a series of trials testing the validity of the resulting interregional trade-flow data versus other data sources and estimates such as Liu and Vilain (2004). The overall difference in estimation accuracy arising from differences in the base aggregation level is a quantity that has attracted little prior attention. To address this issue this paper, in addition to estimating and comparing trade flows using aggregated sectors, also estimates the flows using the 509 disaggregated IMPLAN sectors applies aggregation only in the final comparison steps. This allows us to comment on the additional role sectoral aggregation scale may play in the relative accuracy of trade flow estimation results.

Suggested Citation

  • Walter Schwarm & Randall Jackson, 2006. "Examining and Evaluating Aggregation Scale Effects on Interregional Commodity by Industry Trade Flow Estimates," Working Papers Working Paper 2006-04, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2006wp04
    as

    Download full text from publisher

    File URL: https://researchrepository.wvu.edu/rri_pubs/114/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kazumi Hitomi & Yasuhide Okuyama & Geoffrey Hewings & Michael Sonis, 2000. "The Role of Interregional Trade in Generating Change in the Regional Economies of Japan, 1980-1990," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 515-537.
    2. Randall Jackson & Walter Schwarm & Yasuhide Okuyama & Samia Islam, 2006. "A method for constructing commodity by industry flow matrices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(4), pages 909-920, December.
    3. Anonymous, 1961. "Organization for European Economic Cooperation," International Organization, Cambridge University Press, vol. 15(1), pages 204-205, January.
    4. Patrick Canning & Zhi Wang, 2005. "A Flexible Mathematical Programming Model to Estimate Interregional Input–Output Accounts," Journal of Regional Science, Wiley Blackwell, vol. 45(3), pages 539-563, August.
    5. Hewings,Geoffrey J. D. & Madden,Moss (ed.), 1995. "Social and Demographic Accounting," Cambridge Books, Cambridge University Press, number 9780521465724, November.
    6. Round, Jeffrey I, 1985. "Decomposing Multipliers for Economic Systems Involving Regional and World Trade," Economic Journal, Royal Economic Society, vol. 95(378), pages 383-399, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schwarm, Walter R. & Jackson, Randall W. & Okuyama, Yasuhide, 2006. "An Evaluation of Method for Constructing Commodity by Industry Flow Matrices," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(01), pages 1-10.
    2. Randall Jackson & Walter Schwarm & Yasuhide Okuyama & Samia Islam, 2006. "A method for constructing commodity by industry flow matrices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(4), pages 909-920, December.
    3. Carlos Llano & Almudena Esteban & Julian Pérez & Antonio Pulido, 2010. "Opening the Interregional Trade ‘‘Black Box’’: The C-Intereg Database for the Spanish Economy (1995—2005)," International Regional Science Review, , vol. 33(3), pages 302-337, July.
    4. repec:rri:wpaper:200604 is not listed on IDEAS
    5. repec:rri:wpaper:200405 is not listed on IDEAS
    6. Andrzej Torój, 2016. "Regional Economic Impact Assessment with Missing Input-Output Data: A Spatial Econometrics Approach for Poland," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 8(2), pages 61-91, June.
    7. Manfred Lenzen & Roberto Schaeffer, 2004. "Environmental and Social Accounting for Brazil," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(2), pages 201-226, February.
    8. Umed Temursho & Manuel Alejandro Cardenete & Krzysztof Wojtowicz & Luis Rey & Matthias Weitzel & Toon Vandyck & Bert Saveyn, 2020. "Projecting input-output tables for model baselines," JRC Research Reports JRC120513, Joint Research Centre.
    9. Jan A van der Linden & Erik Dietzenbacher, 2000. "The Determinants of Structural Change in the European Union: A New Application of RAS," Environment and Planning A, , vol. 32(12), pages 2205-2229, December.
    10. Randall Jackson & Walter Schwarm, 2011. "Accounting foundations for interregional commodity-by-industry input-output models," Letters in Spatial and Resource Sciences, Springer, vol. 4(3), pages 187-196, October.
    11. JiYoung Park & Peter Gordon & James Moore & Harry Richardson, 2009. "A two-step approach to estimating state-to-state commodity trade flows," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(4), pages 1033-1072, December.
    12. Chris Bachmann & Chris Kennedy & Matthew Roorda, 2015. "Estimating regional trade flows using commercial vehicle survey data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 855-876, May.
    13. Russel Cooper, 1998. "An extension of the block spacial path approach to analysis of the influence of intra and interregional trade on multiplier effects in general interregional input-output models," ERSA conference papers ersa98p424, European Regional Science Association.
    14. Marc Mueller & Emanuele Ferrari, 2012. "Social Accounting Matrices and Satellite Accounts for EU27 on NUTS2 Level (SAMNUTS2)," JRC Research Reports JRC73088, Joint Research Centre.
    15. He, Peijun & Ng, Tsan Sheng & Su, Bin, 2019. "Energy-economic resilience with multi-region input–output linear programming models," Energy Economics, Elsevier, vol. 84(C).
    16. Wang, Zhi & Gehlhar, Mark & Yao, Shunli, 2010. "A globally consistent framework for reliability-based trade statistics reconciliation in the presence of an entrepôt," China Economic Review, Elsevier, vol. 21(1), pages 161-189, March.
    17. Michael Michaely, 1971. "An Over-all View of Policy Patterns," NBER Chapters, in: The Responsiveness of Demand Policies to Balance of Payments: Postwar Patterns, pages 30-70, National Bureau of Economic Research, Inc.
    18. Nuria Gallego & Carlos Llano, 2014. "The Border Effect and the Nonlinear Relationship between Trade and Distance," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 1016-1048, November.
    19. Maki, Wilbur R., 1992. "Reshaping The City-Region In Global Competition," Staff Papers 13904, University of Minnesota, Department of Applied Economics.
    20. Xiuli Liu & Geoffrey J. D. Hewings, 2019. "Identification of changes in the economic interactions among sectors from 1995 to 2010 for Chicago economy using hierarchical feedback loop analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(3), pages 637-655, June.
    21. Seung, Chang K., 2017. "A Multi-regional Economic Impact Analysis of Alaska Salmon Fishery Failures," Ecological Economics, Elsevier, vol. 138(C), pages 22-30.
    22. Jose Pavía & Bernardi Cabrer & Luis Vila, 2006. "Interregional Trade Linkages and the Commercial Role: The Spanish Case," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(1), pages 91-103, February.

    More about this item

    Keywords

    aggregation scale effects; commodity by industry; trade flow; regional development;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rri:wpaper:2006wp04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Randall Jackson (email available below). General contact details of provider: https://edirc.repec.org/data/rrwvuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.