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Estimation of Interregional Trade for Finnish Regions in 1996 and 2002 - Freight Flow and Gravity Approaches

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  • Tuomas Louhela

Abstract

When interregional trade flows were estimated in Finland for the year 1996 the survey was sent to almost 10,000 establishments in manufacturing, construction and service industries. In the regional input-output project for the year 2002 time consuming survey was replaced by integrating commodity and freight statistics. This freight flow method was used for the years 1996 and 2002 to calculate trade flows for Finnish regions. The estimation results were then compared to the survey’s trade flow information. Estimations were also made for these years by the gravity approach to increase the knowledge how this traditional method works on the regional level. According to the research results the survey approach and the freight flow and gravity models estimated the order of the flows in the same way for 1996, but the freight flow model underestimated trade between smaller regions. When single flows were compared, the results of the gravity approach differed greatly from the flows gained by the other two methods. The freight flow approach, however, had also a limitation: the data. As commodity statistics do not cover all sale, service and primary products, flows of those goods are still unsolved. The next step in the input-output project is to correct this limitation and sharpen up the picture of the regions’ production structure and sales volume.

Suggested Citation

  • 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.
  • Handle: RePEc:wiw:wiwrsa:ersa06p114
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    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa06/papers/114.pdf
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    References listed on IDEAS

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    1. Guy R. West, 1990. "Regional Trade Estimation: A Hybrid Approach," International Regional Science Review, , vol. 13(1-2), pages 103-118, April.
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    Cited by:

    1. Alastair Greig & Katerina Lisenkova & Graeme Roy, 2018. "A Data Map of Existing UK Data Sources Related to Regional Trade," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2018-03, Economic Statistics Centre of Excellence (ESCoE).
    2. Mairi Spowage & Sharada Nia Davidson, 2021. "Improving the Quality of Regional Economic Indicators in the UK: A Framework for Interregional Trade Data Collection and Estimation," Economic Statistics Centre of Excellence (ESCoE) Technical Reports ESCOE-TR-13, Economic Statistics Centre of Excellence (ESCoE).
    3. Anthony T. Flegg & Timo Tohmo, 2013. "Estimating regional input coefficients and multipliers: The Use of the FLQ is not a Gamble," Working Papers 20131302, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    4. 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.
    5. Alastair Greig & Mairi Spowage & Graeme Roy, 2020. "UK Interregional Trade Estimation: Estimates of trade between Northern Ireland, Scotland, Wales and England," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2020-09, Economic Statistics Centre of Excellence (ESCoE).
    6. Olli Lehtonen & Markku Tykkyl�inen, 2014. "Estimating Regional Input Coefficients and Multipliers: Is the Choice of a Non-Survey Technique a Gamble?," Regional Studies, Taylor & Francis Journals, vol. 48(2), pages 382-399, February.

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