IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v54y2015i3p901-926.html
   My bibliography  Save this article

On the regionalization of input–output tables with an industry-specific location quotient

Author

Listed:
  • Xiaoyun Zhao
  • Sung-Goan Choi

Abstract

The purpose of this study is to contribute to the ongoing debate about the performance of several location quotients (LQs), including Flegg’s location quotient (FLQ) and the industry-specific FLQ (SFLQ), which was newly developed by Kowalewski (Reg Stud, 240–250, 2015 ). Unlike FLQ, which has one unique $$\delta $$ δ -value for all industries in a region, SFLQ allows for a variation in the exponential parameter value of $$\delta $$ δ for each industrial sector in order to capture specialization and to reduce the tendency for overestimation or underestimation of each of the industries in a given region. Since the national and regional survey data are available for South Korea, this study evaluates and compares the results for SFLQ against those of other non-survey techniques. The findings prove that SFLQ is superior to other LQs, including FLQ and augmented FLQ. In addition, empirical evidence shows that the optimal values for the exponential parameters vary drastically among industries. SFLQ provides more detailed information on regional industries with individual $$\delta $$ δ values, which is definitely helpful when analyzing regional specialization and shifts in industrial structure. Furthermore, to determine the optimal exponential $$\delta ({\delta _j })$$ δ ( δ j ) value in FLQ and SFLQ in advance, Flegg’s and Kowalewski’s regression models are tested with the use of Korean data. The statistics indicate that the regression equations are debatable and still need major improvement. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Xiaoyun Zhao & Sung-Goan Choi, 2015. "On the regionalization of input–output tables with an industry-specific location quotient," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 901-926, May.
    • Handle: RePEc:spr:anresc:v:54:y:2015:i:3:p:901-926
    DOI: 10.1007/s00168-015-0693-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00168-015-0693-x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00168-015-0693-x?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. R C Jensen & G R West, 1980. "The Effect of Relative Coefficient Size on Input—Output Multipliers," Environment and Planning A, , vol. 12(6), pages 659-670, June.
    2. 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.
    3. 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.
    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. 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.
    6. Sunggoan Choi & Haemyoung Ji & Xiaoyun Zhao, 2014. "Identifying key sectors using regional input-output model at sub-national level," ERSA conference papers ersa14p995, European Regional Science Association.
    7. Anonymous, 1961. "Organization for European Economic Cooperation," International Organization, Cambridge University Press, vol. 15(1), pages 204-205, January.
    8. Anthony T. Flegg & Timo Tohmo, 2013. "Regional Input--Output Tables and the FLQ Formula: A Case Study of Finland," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 703-721, May.
    9. William A. Schaffer & Kong Chu, 1969. "Nonsurvey Techniques For Constructing Regional Interindustry Models," Papers in Regional Science, Wiley Blackwell, vol. 23(1), pages 83-104, January.
    10. Andrea Bonfiglio, 2009. "On The Parameterization Of Techniques For Representing Regional Economic Structures," Economic Systems Research, Taylor & Francis Journals, vol. 21(2), pages 115-127.
    11. Stanislaw Czamanski & Emil E. Malizia, 1969. "Applicability And Limitations In The Use Of National Input‐Output Tables For Regional Studies," Papers in Regional Science, Wiley Blackwell, vol. 23(1), pages 65-78, January.
    12. Sunggoan Choi, 2013. "Revealing the Growth Potentials with Input-Output Model at Sub-national Level," ERSA conference papers ersa13p73, European Regional Science Association.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. 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.
    2. 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.
    3. Jim McFarlane & Bligh Grant & Boyd Blackwell & Stuart Mounter, 2017. "Combining amenity with experience," Tourism Economics, , vol. 23(5), pages 1076-1095, August.
    4. 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.

    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. 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. 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.
    4. Lankhuizen, Maureen & Boonstra, Harm Jan & de Blois, Chris, 2020. "Unpacking freight – Identifying conditions driving regional freight transport in statistics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 415-435.
    5. Cristian Mardones & Darling Silva, 2021. "Estimation of regional input coefficients and output multipliers for the regions of Chile," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 875-889, August.
    6. 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.
    7. José Daniel Buendía Azorín & Rubén Martínez Alpañez & Maria del Mar Sánchez de la Vega, 2022. "A new proposal to model regional input–output structures using location quotients. An application to Korean and Spanish regions," Papers in Regional Science, Wiley Blackwell, vol. 101(5), pages 1219-1237, October.
    8. 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.
    9. 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.
    10. Anthony T. Flegg & Leonardo J. Mastronardi & Carlos A. Romero, 2014. "Empirical evidence on the use of the FLQ formula for regionalizing national input-output tables: The case of the Province of C¨®rdoba, Argentina," Working Papers 20141406, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    11. Tobias Kronenberg, 2012. "Regional input-output models and the treatment of imports in the European System of Accounts (ESA)," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(2), pages 175-191, September.
    12. 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.
    13. Yu. Yu. Ponomarev & D. Yu. Evdokimov, 2021. "Construction of Truncated Input–Output Tables for Russian Regions Using Location Quotients," Studies on Russian Economic Development, Springer, vol. 32(6), pages 619-630, November.
    14. 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.
    15. Xesús Pereira-López & Napoleón Guillermo Sánchez-Chóez & Melchor Fernández-Fernández, 2022. "Spotting Error Patterns in Input–Output Projections Using Location Quotients," Mathematics, MDPI, vol. 10(9), pages 1-19, April.
    16. Tony Flegg & Leonardo J. Mastronardi & Carlos A. Romero, 2015. "Evaluating the FLQ and AFLQ formulae for estimating regional input coefficients: empirical evidence for the province of C¨®rdoba, Argentina," Working Papers 20151508, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    17. Institut für Wirtschaftsforschung Halle (Ed.), 2013. "Neuere Anwendungsfelder der Input-Output-Analyse: Beiträge zum Halleschen Input-Output-Workshop 2012," IWH-Sonderhefte 1/2013, Halle Institute for Economic Research (IWH).
    18. Anthony T. Flegg & Leonardo J. Mastronardi & Carlos A. Romero, 2016. "Evaluating the FLQ and AFLQ formulae for estimating regional input coefficients: empirical evidence for the province of Córdoba, Argentina," Economic Systems Research, Taylor & Francis Journals, vol. 28(1), pages 21-37, March.
    19. Anthony T. Flegg & Yongming Huang & Timo Tohmo, 2015. "Using Charm to Adjust for Cross-Hauling: The Case of the Province of Hubei, China," Economic Systems Research, Taylor & Francis Journals, vol. 27(3), pages 391-413, September.
    20. 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).

    More about this item

    Keywords

    R15; C67;

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

    Statistics

    Access and download statistics

    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:spr:anresc:v:54:y:2015:i:3:p:901-926. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.