IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v11y2023i1p20-d1030183.html
   My bibliography  Save this article

A New Improvement Proposal to Estimate Regional Input–Output Structure Using the 2D-LQ Approach

Author

Listed:
  • Rubén Martínez-Alpañez

    (Department of Applied Economics, University of Murcia, 30100 Murcia, Spain)

  • José Daniel Buendía-Azorín

    (Department of Applied Economics, University of Murcia, 30100 Murcia, Spain)

  • María del Mar Sánchez-de-la-Vega

    (Department of Quantitative Methods for Economy and Business, University of Murcia, 30100 Murcia, Spain)

Abstract

The use of location quotients for the estimation of regional input–output tables has been found to be a useful and efficient tool to estimate intraregional production coefficients and multipliers. This paper considers some regionalisation methodologies based on location quotients for the estimation of input–output tables—some of which have hitherto not been analysed at the regional level—and studies which one provides the best estimation (best goodness of fit). We focus the analysis mainly on the accuracy of Flegg’s location quotient (FLQ) and two-dimensional location quotient (2D-LQ). The analysis makes use of the multiregional input–output table for Korea for the year 2015 to evaluate the accuracy of the 2D-LQ method against FLQ. A novel proposal for the determination of the parameters corresponding to the 2D-LQ method is presented. This proposal is evaluated in Korean regions and is also applied to Spanish regions. The results obtained from the research conclude the general superiority of the 2D-LQ method, thus corroborating the results of other studies at the national level as well as the validity of our proposal.

Suggested Citation

  • Rubén Martínez-Alpañez & José Daniel Buendía-Azorín & María del Mar Sánchez-de-la-Vega, 2023. "A New Improvement Proposal to Estimate Regional Input–Output Structure Using the 2D-LQ Approach," Economies, MDPI, vol. 11(1), pages 1-17, January.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:1:p:20-:d:1030183
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/11/1/20/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/11/1/20/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yongming Huang & Anthony T. Flegg & Timo Tohmo, 2014. "Cross-Hauling and Regional Input-Output Tables: The Case of the Province of Hubei, China," Working Papers Working Paper 2014-03, Regional Research Institute, West Virginia University.
    2. Anthony T. Flegg & Timo Tohmo, 2019. "The regionalization of national input‐output tables: A study of South Korean regions," Papers in Regional Science, Wiley Blackwell, vol. 98(2), pages 601-620, April.
    3. I�aki Arto & Jos� M. Rueda-Cantuche & Glen P. Peters, 2014. "Comparing The Gtap-Mrio And Wiod Databases For Carbon Footprint Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 327-353, September.
    4. Anthony T. Flegg & Leonardo J. Mastronardi & Carlos A. Romero, 2016. "Evaluating the FLQ and AFLQ formulae for estimating regional input coefficients: empirical evidence for the province of Córdoba, Argentina," Economic Systems Research, Taylor & Francis Journals, vol. 28(1), pages 21-37, March.
    5. Philip Mccann & John H. LL. Dewhurst, 1998. "Regional Size, Industrial Location and Input-Output Expenditure Coefficients," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 435-444.
    6. Geoff Riddington & Hervey Gibson & John Anderson, 2006. "Comparison of Gravity Model, Survey and Location Quotient-based Local Area Tables and Multipliers," Regional Studies, Taylor & Francis Journals, vol. 40(9), pages 1069-1081.
    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. 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.
    2. 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.
    3. Tranos, Emmanouil & Incera, Andre Carrascal & Willis, George, 2022. "Using the web to predict regional trade flows: data extraction, modelling, and validation," OSF Preprints 9bu5z, Center for Open Science.
    4. Eduardo A. Haddad & Natalia Q. Cotarelli, Thiago C. Simonato, Vinicius A. Vale & Jaqueline C. Vicentin, 2018. "Estimation of NUTS2 Interregional Input-Output Systems for Greece, 2010 and 2013," Working Papers, Department of Economics 2018_07, University of São Paulo (FEA-USP).
    5. Georgios Lampiris & Christos Karelakis & Efstratios Loizou, 2020. "Comparison of non-survey techniques for constructing regional input–output tables," Annals of Operations Research, Springer, vol. 294(1), pages 225-266, November.
    6. Anthony Flegg & Timo Tohmo, 2011. "Regional Input-Output Tables and the FLQ Formula: A Case Study of Finland," ERSA conference papers ersa11p334, European Regional Science Association.
    7. Kristinn Hermannsson, 2016. "Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input–Output Tables," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(3), pages 315-339, July.
    8. Hongli Zhang & Lei Shen & Shuai Zhong & Ayman Elshkaki, 2020. "Economic Structure Transformation and Low-Carbon Development in Energy-Rich Cities: The Case of the Contiguous Area of Shanxi and Shaanxi Provinces, and Inner Mongolia Autonomous Region of China," Sustainability, MDPI, vol. 12(5), pages 1-14, March.
    9. Amaral Haddad, Eduardo & Fernandes de Araújo, Inácio & Ibarraran, María Eugenia & Boyd, Roy & Elizondo, Alejandra & Liedo-Orozco, Pedro & Menchero-Garcia, Mariana & Belausteguigoitia, Juan Carlos, 2019. "Interregional Input-Output System for Mexico, 2013," TD NEREUS 7-2019, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    10. Yu. Yu. Ponomarev & D. Yu. Evdokimov, 2021. "Construction of Truncated Input–Output Tables for Russian Regions Using Location Quotients," Studies on Russian Economic Development, Springer, vol. 32(6), pages 619-630, November.
    11. Mattia Cai, 2021. "Doubly constrained gravity models for interregional trade estimation," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 455-474, April.
    12. Cristian Mardones & Darling Silva, 2023. "Evaluation of Non-survey Methods for the Construction of Regional Input–Output Matrices When There is Partial Historical Information," Computational Economics, Springer;Society for Computational Economics, vol. 61(3), pages 1173-1205, March.
    13. Szabó, Norbert, 2015. "Methods for regionalizing input-output tables," MPRA Paper 73947, University Library of Munich, Germany.
    14. 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.
    15. 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.
    16. Zheng LU & Xiang DENG, 2017. "Regional Specialization: New Methods Of Measurement And The Trends In China 1987-2007," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 119-134.
    17. José M. Rueda-Cantuche & Tamas Revesz & Antonio F. Amores & Agustín Velázquez & Marian Mraz & Emanuele Ferrari & Alfredo J. Mainar-Causapé & Letizia Montinari & Bert Saveyn, 2020. "Improving the European input–output database for global trade analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-16, December.
    18. Gunnar Lindberg, 2011. "On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers," ERSA conference papers ersa10p800, European Regional Science Association.
    19. Kopainsky, Birgit & Flury, Christian & Giuliani, Gianluca, 2008. "Agriculture’s contribution to rural viability: An approach to estimate regional economic impacts of agricultural policy in Swiss case study regions," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6483, European Association of Agricultural Economists.
    20. Billings, Stephen B. & Johnson, Erik B., 2012. "The location quotient as an estimator of industrial concentration," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 642-647.

    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:gam:jecomi:v:11:y:2023:i:1:p:20-:d:1030183. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.