Regionalization of national input-output tables: Empirical evidence on the use of the FLQ formula
This paper contributes to the ongoing debate about deriving the value of the exponent when using Flegg's location quotient (FLQ) formula which helps to simulate regional input-output tables. Using a survey-based regional input-output table, the empirical analysis provides evidence of an optimal for the German Federal of State Baden-Wuerttemberg. Furthermore, an extended formula (SFLQ) is introduced allowing for variation in by industry. Finally, this paper demonstrates the advantage of the SFLQ and finds evidence for a close relationship between the spatial concentration of an industry at the national level and its propensity to import goods and services from other regions.
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- 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.
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- F J Harrigan & J W McGilvray & I H McNicoll, 1980. "Simulating the Structure of a Regional Economy," Environment and Planning A, SAGE Publishing, vol. 12(8), pages 927-936, August.
- 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.
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