IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v38y2004i1p43-54.html
   My bibliography  Save this article

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

Author

Listed:
  • Timo Tohmo

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.

Suggested Citation

  • Timo Tohmo, 2004. "New Developments in the Use of Location Quotients to Estimate Regional Input-Output Coefficients and Multipliers," Regional Studies, Taylor & Francis Journals, vol. 38(1), pages 43-54.
    • Handle: RePEc:taf:regstd:v:38:y:2004:i:1:p:43-54
    DOI: 10.1080/00343400310001632262
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400310001632262
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343400310001632262?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. A. T. Flegg & C. D. Webber, 1997. "On the Appropriate Use of Location Quotients in Generating Regional Input-Output Tables: Reply," Regional Studies, Taylor & Francis Journals, vol. 31(8), pages 795-805.
    2. Steven Brand, 1997. "On the Appropriate Use of Location Quotients in Generating Regional Input-Output Tables: A Comment," Regional Studies, Taylor & Francis Journals, vol. 31(8), pages 791-794.
    3. 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.
    4. A. T. Flegg & C. D. Webber, 2000. "Regional Size, Regional Specialization and the FLQ Formula," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 563-569.
    5. Richard Harris & Aying Liu, 1998. "Input-Output Modelling of the Urban and Regional Economy: The Importance of External Trade," Regional Studies, Taylor & Francis Journals, vol. 32(9), pages 851-862.
    6. F J Harrigan & J W McGilvray & I H McNicoll, 1980. "Simulating the Structure of a Regional Economy," Environment and Planning A, , vol. 12(8), pages 927-936, August.
    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. 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.
    2. 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.
    3. 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.
    4. Yu, Yang & Hubacek, Klaus & Feng, Kuishuang & Guan, Dabo, 2010. "Assessing regional and global water footprints for the UK," Ecological Economics, Elsevier, vol. 69(5), pages 1140-1147, March.
    5. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "Policy Scepticism and the Impact of Northern Irish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints," SIRE Discussion Papers 2010-78, Scottish Institute for Research in Economics (SIRE).
    6. A. T. Flegg & C. D. Webber, 2000. "Regional Size, Regional Specialization and the FLQ Formula," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 563-569.
    7. Andrea BONFIGLIO & Francesco CHELLI, 2004. "An Impact Analysis of SAPARD in Rural Areas by Alternative Methods of Regionalization," Working Papers 218, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    8. Kowalewski, Julia, 2012. "Regionalization of national input-output tables: Empirical evidence on the use of the FLQ formula," HWWI Research Papers 126, Hamburg Institute of International Economics (HWWI).
    9. 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.
    10. 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.
    11. Johannes Többen & Tobias Heinrich Kronenberg, 2015. "Construction Of Multi-Regional Input--Output Tables Using The Charm Method," Economic Systems Research, Taylor & Francis Journals, vol. 27(4), pages 487-507, December.
    12. Lu, Zheng & Flegg, A.Tony & Deng, Xiang, 2011. "Regional specialization: a measure method and the trends in China," MPRA Paper 33867, University Library of Munich, Germany.
    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.
    14. 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.
    15. Andrea Bonfiglio & Francesco Chelli, 2008. "Assessing the Behaviour of Non-Survey Methods for Constructing Regional Input-Output Tables through a Monte Carlo Simulation," Economic Systems Research, Taylor & Francis Journals, vol. 20(3), pages 243-258.
    16. 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.
    17. J. Reid Cummings & Donald R. Epley, 2014. "A Total Requirements View of a Tourism and Hospitality Market is More Accurate Than Traditional Location Quotients," Tourism Economics, , vol. 20(3), pages 473-492, June.
    18. Argyrios D. Kolokontes & Chrysovalantis Karafillis & Fotios Chatzitheodoridis, 2008. "Argyrios D. Kolokontes, Chrysovalantis Karafillis, Fotios Chatzitheodoridis - Peculiarities and usefulness of multipliers, elasticities and location quotients for the regional development planning: an," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 2(2), pages 118-133, December.
    19. Clio Ciaschini & Margherita Carlucci & Francesco Maria Chelli & Giuseppe Ricciardo Lamonica, 2021. "The Marche region and its industry pattern: a quantitative evaluation," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 75(1), pages 89-100, January-M.
    20. 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.

    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:taf:regstd:v:38:y:2004:i:1:p:43-54. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    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.