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Cross-hauling and regional input-output tables: the case of the province of Hubei, China

  • Anthony T Flegg

    ()

    (University of the West of England, Bristol)

  • Yongming Huang

    ()

    (Wuhan University)

  • Timo Tohmo

    (University of Jyväskylä)

Registered author(s):

    Data for the Chinese province of Hubei are used to assess the performance of Kronenberg's CHARM, a method that takes explicit account of cross-hauling when constructing regional input-output tables. A key determinant of cross-hauling is held to be the heterogeneity of the products of individual sectors, which is estimated using national data. However, contrary to the authors' earlier findings for Finland, CHARM does not generate reliable estimates of Hubei's sectoral exports, imports and the volume of trade. This outcome is attributed to the difficulty of getting satisfactory estimates of net exports and the degree of heterogeneity for this data set. This problem is, in turn, linked to the relatively small size of the region under examination, which generates around four percent of China's GDP. Nevertheless, CHARM does yield reasonable estimates of sectoral supply multipliers. It is suggested that the poor simulation of Hubei's trading patterns is due to the difficulty, in this instance, of constructing a regional input-output table using national data, rather than to any theoretical shortcomings of the method as such.

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    File URL: http://www2.uwe.ac.uk/faculties/BBS/BUS/Research/Economics13/1310.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 20131310.

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    Date of creation: 10 Jan 2013
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    Handle: RePEc:uwe:wpaper:20131310
    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 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.
    2. 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).
    3. Geoff Riddington & Hervey Gibson & John Anderson, 2006. "Comparison of Gravity Model, Survey and Location Quotient-based Local Area Tables and Multipliers," Regional Studies, Taylor & Francis Journals, vol. 40(9), pages 1069-1081.
    4. Erik Dietzenbacher & Ronald E. Miller, 2009. "Ras-Ing The Transactions Or The Coefficients: It Makes No Difference," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 555-566.
    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. Tobias Kronenberg, 2009. "Construction of Regional Input-Output Tables Using Nonsurvey Methods," International Regional Science Review, , vol. 32(1), pages 40-64, January.
    7. 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.
    8. 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.
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