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A new proposal to model regional input–output structures using location quotients. An application to Korean and Spanish regions

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  • José Daniel Buendía Azorín
  • Rubén Martínez Alpañez
  • Maria del Mar Sánchez de la Vega

Abstract

This paper is based on the use of Flegg's location quotients (FLQ) and proposes a novel procedure for the estimation of the unknown parameter δ in regions with and without input–output frame availability. Applied to data for the Korean regions for the year 2015, firstly the determination of the optimal δ is addressed by solving a general optimization problem and, secondly, a regression equation is proposed to estimate the value of δ from the explanatory variables of interregional road freight transport (IRFT) and imports from the rest of the world (IROW). The results obtained show a lower bias in regard to the true values of the regional inputs coefficients in relation to other methods based on location quotients. Este artículo se basa en el uso de los cocientes de localización de Flegg (FLQ, por sus siglas en inglés) y propone un procedimiento novedoso para estimar el parámetro desconocido δ en regiones con y sin disponibilidad de un marco de input–output. Aplicado a datos de las regiones coreanas para el año 2015, en primer lugar se aborda la determinación del δ óptimo mediante la resolución de un problema de optimización general y, en segundo lugar, se propone una ecuación de regresión para estimar el valor de δ a partir de las variables explicativas del transporte interregional de mercancías por carretera (IRFT, por sus siglas en inglés) y las importaciones del resto del mundo (IROW, por sus siglas en inglés). Los resultados obtenidos muestran un menor sesgo respecto a los valores reales de los coeficientes de insumos regionales en relación con otros métodos basados en cocientes de localización. 本稿は、Freggの立地係数(FLQ)の使用に基づいて、産業連関表のフレームの利用可能性のがある領域とない領域における未知パラメータδの推定のための新しい方法を提案する。2015年の韓国の地方のデータに適用し、はじめに一般的最適化問題を解くことによって最適δを決定し、次に地域間道路貨物輸送(IRFT)と外国からの輸入(IROW)の説明変数からδ値を推定する回帰方程式を提案する。得られた結果から、立地係数に基づく他の方法に関連して、地域投入係数の真の値において低いバイアスが示された。

Suggested Citation

  • 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.
  • Handle: RePEc:bla:presci:v:101:y:2022:i:5:p:1219-1237
    DOI: 10.1111/pirs.12692
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    References listed on IDEAS

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