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A location quotient-based interregional input-output (IRIOLQ) framework

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  • Jahn, Malte

Abstract

The regionalization of national input-output tables is a major issue in regional science as corresponding regional data is often unavailable. In this paper, a framework is developed to estimate intra- and interregional input-output tables. The intraregional estimates are based on the wellaccepted FLQ method. The interregional estimates include gravity model-based estimates to account for geographical distances between the regions. The estimates are embedded in an interregional accounting framework which ensures consistency of regional values with the national aggregates. The framework is applied to the German economy of 2010. We are able to show the importance of taking into account interregional input-output relations in the derivation of (regional) demand multipliers.

Suggested Citation

  • Jahn, Malte, 2015. "A location quotient-based interregional input-output (IRIOLQ) framework," HWWI Research Papers 161, Hamburg Institute of International Economics (HWWI).
    • Handle: RePEc:zbw:hwwirp:161
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    References listed on IDEAS

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    1. David F. Batten, 1982. "The Interregional Linkages between National and Regional Input-Output Models," International Regional Science Review, , vol. 7(1), pages 53-67, May.
    2. 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.
    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. Canning, Patrick & Wang, Zhi, 2004. "A flexible modeling framework to estimate interregional trade patterns and input-output accounts," Policy Research Working Paper Series 3359, The World Bank.
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    7. 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).
    8. Kowalewski, Julia, 2009. "Methodology of the input-output analysis," HWWI Research Papers 1-25, Hamburg Institute of International Economics (HWWI).
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