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Peculiarities And Usefulness Of Multipliers, Elasticities And Location Quotients For The Regional Development Planning: An Other View

  • Argyrios D. Kolokontes

    (Technological Educational Institution (T.E.I.) of Western Macedonia)

  • Chrysovalantis Karafillis

    (Technological Educational Institution (T.E.I.) of Western Macedonia)

  • Fotios Chatzitheodoridis

    ()

    (Technological Educational Institution (T.E.I.) of Western Macedonia)

In this paper, the peculiarities of type I multipliers and elasticities and their differences on the generated results for the proposed developmental priorities are examined. Moreover the influences of the used non-survey techniques (Simple Location Quotient, Cross Industry Location Quotient and Flegg’s Location Quotient) among the sectoral rankings from the type I multipliers and elasticities are scrutinized. For the target of the paper, the economy of Western Macedonia region in Greece has been used as an example for the secondary simulation. The results show that the type I multipliers and elasticities are not end up to same sectoral rankings due to their different definition and are not the same suitable indicators for short-term and long-term developmental planning. Nevertheless, their coexistence could improve the economic prosperity both on short and long period of time. As for the used location quotient, the FLQ technique improves the proximity of the sectoral rankings that are generated from all the used indicators and also reduces the magnitudes of type I multipliers and elasticities.

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Article provided by Romanian Regional Science Association in its journal Romanian Journal of Regional Science.

Volume (Year): 2 (2008)
Issue (Month): 2 (December)
Pages: 118-133

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Handle: RePEc:rrs:journl:v:2:y:2008:i:1:p:118-133
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  1. 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.
  2. Louis de Mesnard, 2004. "Understanding the Shortcomings of Commodity-based Technology in Input-Output Models: an Economic-Circuit Approach," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 125-141.
  3. Claudia Ciobanu & Konstadinos Mattas & Dimitris Psaltopoulos, 2004. "Structural Changes in Less Developed Areas: An Input- Output Framework," Regional Studies, Taylor & Francis Journals, vol. 38(6), pages 603-614.
  4. Round, J. I., 1978. "On estimating trade flows in interregional input output models," Regional Science and Urban Economics, Elsevier, vol. 8(3), pages 289-302, September.
  5. Erik Dietzenbacher, 2005. "More on multipliers," Journal of Regional Science, Wiley Blackwell, vol. 45(2), pages 421-426.
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