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A Flexible Modeling Framework to Estimate Interregional Trade Patterns and Input-Output Accounts

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  • Canning, Patrick
  • Wang, Zhi

Abstract

This study implements and tests a mathematical programming model to estimate interregional, interindustry transaction flows in a national system of economic regions based on an interregional accounting framework and initial information of interregional shipments. A complete national IO table, regional sectoral data on gross output, value-added, exports, imports and final demand are used as inputs to generate an interregional input-output system that reconciles regional market data and interregional transactions. The analytical and empirical properties of the model are discussed in detail. The model is tested by a 3-region 10-sector example against data aggregated from the version 4 GTAP database. It shows that the model has remarkable capacity to discover the true interregional trade pattern from highly distorted initial estimates. The paper also discusses an application of the model to estimate an interregional input-output account for the US economy based on the BEA 1997 national benchmark IO table and detailed state level data from the 1997 economic Census and other sources.

Suggested Citation

  • Canning, Patrick & Wang, Zhi, 2003. "A Flexible Modeling Framework to Estimate Interregional Trade Patterns and Input-Output Accounts," Conference papers 331136, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331136
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    References listed on IDEAS

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