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A bidimensional reformulation of location quotients for generating input–output tables

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  • Xesús Pereira-López
  • André Carrascal-Incera
  • Melchor Fernández-Fernández

Abstract

The difficulties in obtaining input–output tables at subnational levels have led to multiple methodological developments in order to obtain local technical coefficients using semi-survey approaches. A widely accepted method is based on the use of location quotients (LQ) according to Flegg's formula (AFLQ). However, it makes the adjustment of purchasing sectors proportionally to the productive specialization, which has significant implications for the estimation of domestic coefficients. In this paper, an alternative formulation is presented as a generalization of Flegg's methodology, characterized by using a bidimensional approach that provides better results, as shown in the empirical application implemented.

Suggested Citation

  • Xesús Pereira-López & André Carrascal-Incera & Melchor Fernández-Fernández, 2020. "A bidimensional reformulation of location quotients for generating input–output tables," Spatial Economic Analysis, Taylor & Francis Journals, vol. 15(4), pages 476-493, October.
    • Handle: RePEc:taf:specan:v:15:y:2020:i:4:p:476-493
    DOI: 10.1080/17421772.2020.1729996
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    Cited by:

    1. 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.
    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. Mingkai Liu & Changxin Liu & Shouting Zhang & Baoyin Liu & Yi Sun & Xun Ge & Xinyu Wang & Hongyan Zhang, 2021. "Research on Industry Development Path Planning of Resource-Rich Regions in China from the Perspective of “Resources, Assets, Capital”," Sustainability, MDPI, vol. 13(7), pages 1-19, April.

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