Advanced Search
MyIDEAS: Login to save this article or follow this journal

New Developments in the Use of Location Quotients to Estimate Regional Input-Output Coefficients and Multipliers

Contents:

Author Info

  • Timo Tohmo
Registered author(s):

    Abstract

    Tohmo T. (2004) New developments in the use of location quotients to estimate regional input-output coefficients and multipliers, Reg. Studies 38, 43-54. This study compares the survey-based regional input-output coefficients and production multipliers published by Statistics Finland, 2000, with estimates obtained by applying location quotients (LQs) to national data. The consequences of using alternative adjustment formulae, the 'SLQ, CILQ and FLQ' are illustrated by an input-output model constructed for the Keski-Pohjanmaa (K-P) region. The results indicate that the SLQ and CILQ both produce highly misleading regional input-output coefficients and multipliers. These adjustment formulae are clearly not good enough for the purposes of making local policy and regional planning. The FLQ formula (β=1) yields much better regional input-output coefficients and multipliers than the SLQ and CILQ. The FLQ gives very good estimates for regional multipliers in nearly all industries. The difference between the multipliers generated by the FLQ and the survey-based K-P regional multipliers is on average about -0·3%. The multipliers for the K-P region are typically much lower than for Finland as a whole, indicating that the economic structure of the K-P region is dependent on that of other regions. Hence there is a need to make proper allowance for interregional trade. In the case of the K-P region, the FLQ with β=1 was able to offset the tendency of the CILQ to generate excessively large regional multipliers.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400310001632262
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 38 (2004)
    Issue (Month): 1 ()
    Pages: 43-54

    as in new window
    Handle: RePEc:taf:regstd:v:38:y:2004:i:1:p:43-54

    Contact details of provider:
    Web page: http://www.tandfonline.com/CRES20

    Order Information:
    Web: http://www.tandfonline.com/pricing/journal/CRES20

    Related research

    Keywords: Input-output analysis; Location quotients; FLQ; Regional multipliers; Analyse des echanges intersectoriels; Quotients de localisation; FLQ; Multiplicateurs regionaux; Aufwands-Ertragsanalyse; Standortquotienten; FLQ; Regionale Multiplikatoren; Analisis input^output; Cocientes de localizacion (LQs); FLQ; Multiplicadores regionales;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Kristinn, Hermannsson, 2013. "Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input-Output Tables," SIRE Discussion Papers 2013-37, Scottish Institute for Research in Economics (SIRE).
    2. Kronenberg, Tobias, 2011. "Regional input-output models and the treatment of imports in the European System of Accounts," MPRA Paper 30797, University Library of Munich, Germany.
    3. Anthony T. Flegg & Timo Tohmo, 2011. "A comment on Tobias Kronenberg's "Construction of regional input-output tables using nonsurvey methods: the role of cross-hauling"," Working Papers 20111111, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    4. repec:ags:stagec:165987 is not listed on IDEAS
    5. Tobias Kronenberg, 2012. "Regional input-output models and the treatment of imports in the European System of Accounts (ESA)," Jahrbuch für Regionalwissenschaft, Springer, vol. 32(2), pages 175-191, September.
    6. Zawalinska, Katarzyna, 2009. "Evaluation of rural development programs after Poland’s accession to the EU: regional CGE approach," 2009 Conference, August 16-22, 2009, Beijing, China 51342, International Association of Agricultural Economists.
    7. 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.
    8. Kowalewski, Julia, 2012. "Inter-industrial relations and sectoral employment development in German regions," HWWI Research Papers 127, Hamburg Institute of International Economics (HWWI).
    9. Julia Kowalewski, 2013. "Inter-industrial Relations and Sectoral Employment Development in German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(4), pages 486-504, July.
    10. Anthony T Flegg & Yongming Huang & Timo Tohmo, 2013. "Cross-hauling and regional input-output tables: the case of the province of Hubei, China," Working Papers 20131310, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    11. Bonfiglio, Andrea, 2006. "The Impact of Romania's Accession to the EU. An Analysis of the Effects of Regional Development Policy Through a Multi-regional I-O Model," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 7(2), August.
    12. 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.
    13. Kronenberg, Tobias & Többen, Johannes, 2011. "Regional input-output modelling in Germany: The case of North Rhine-Westphalia," MPRA Paper 35494, University Library of Munich, Germany.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:38:y:2004:i:1:p:43-54. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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