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A comment on Tobias Kronenberg's "Construction of regional input-output tables using nonsurvey methods: the role of cross-hauling"

  • Anthony T. Flegg

    ()

    (University of the West of England, Bristol)

  • Timo Tohmo

    (University of Jyväskylä)

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    This paper examines the effectiveness of a new non-survey regionalization method: Kronenberg's Cross-Hauling Adjusted Regionalization Method (CHARM). This aims to take into account the fact that regions typically both import and export most commodities. Data for Uusimaa, Finland's largest region, are employed to carry out a detailed empirical test of CHARM. This test gives very encouraging results. CHARM is suitable for studying environmental questions but it can only be applied in situations where foreign imports have been included in the national input-output table. Where the focus is on regional output and employment, location quotients (LQs) can be used for purposes of regionalization. On both theoretical and empirical grounds, the FLQ appears to be the most suitable LQ currently available. It should be applied to conventional national input-output tables, which exclude foreign imports. Both types of table are available at the national level for all European Union members, as well as for some other countries.

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    File URL: http://www2.uwe.ac.uk/faculties/BBS/BUS/Research/economics/1111%20A%20Comment%20on%20Tobias%20Kronenberg.pdf
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    Paper provided by Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol in its series Working Papers with number 20111111.

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    Date of creation: 11 Jan 2011
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    Handle: RePEc:uwe:wpaper:20111111
    Contact details of provider: Postal: 0117 328 3610
    Phone: 0117 328 3610
    Web page: http://www1.uwe.ac.uk/bl/research/bristoleconomics.aspx

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    1. Anthony Flegg & Timo Tohmo, 2011. "Regional Input-Output Tables and the FLQ Formula: A Case Study of Finland," ERSA conference papers ersa11p334, European Regional Science Association.
    2. Kronenberg, Tobias, 2011. "Regional input-output models and the treatment of imports in the European System of Accounts," MPRA Paper 30797, University Library of Munich, Germany.
    3. Timo Tohmo, 2004. "New Developments in the Use of Location Quotients to Estimate Regional Input-Output Coefficients and Multipliers," Regional Studies, Taylor & Francis Journals, vol. 38(1), pages 43-54.
    4. Tobias Kronenberg, 2009. "Construction of Regional Input-Output Tables Using Nonsurvey Methods," International Regional Science Review, , vol. 32(1), pages 40-64, January.
    5. M H Robison & J R Miller, 1988. "Cross-hauling and nonsurvey input - output models: some lessons from small-area timber economies," Environment and Planning A, Pion Ltd, London, vol. 20(11), pages 1523-1530, November.
    6. 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.
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