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Testing and implementing a new approach to estimating interregional output multipliers using input–output data for South Korean regions

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  • Malte Jahn
  • Anthony T. Flegg
  • Timo Tohmo

Abstract

Flegg's location quotient (FLQ) is a useful tool for estimating intraregional output multipliers. This paper uses it as one component when estimating interregional multipliers. Using statistical information criteria and official data for 16 South Korean regions, it is found that the best approach is to combine the FLQ with a simple trade model. The paper explains how the proposed procedure can be implemented for both multiple and individual regions, and also how a region-specific value for the unknown parameter $\delta$δ in the FLQ formula can be determined. Finally, an illustrative case study of one of the regions is carried out.

Suggested Citation

  • Malte Jahn & Anthony T. Flegg & Timo Tohmo, 2020. "Testing and implementing a new approach to estimating interregional output multipliers using input–output data for South Korean regions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 15(2), pages 165-185, April.
    • Handle: RePEc:taf:specan:v:15:y:2020:i:2:p:165-185
    DOI: 10.1080/17421772.2020.1720918
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    Cited by:

    1. A. V. Kotov, 2021. "Options for the Spatial Development of Russia in the Context of Interregional Interactions," Studies on Russian Economic Development, Springer, vol. 32(3), pages 318-324, May.
    2. 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.
    3. 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.
    4. Hanspeter Wieland & Manfred Lenzen & Arne Geschke & Jacob Fry & Dominik Wiedenhofer & Nina Eisenmenger & Johannes Schenk & Stefan Giljum, 2022. "The PIOLab: Building global physical input–output tables in a virtual laboratory," Journal of Industrial Ecology, Yale University, vol. 26(3), pages 683-703, June.
    5. 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.

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