A1 Journal article (refereed)
A new approach to modelling the input-output structure of regional economies using non-survey methods (2021)

Flegg, A. T., Lamonica, G. R., Chelli, F. M., Recchioni, M. C., & Tohmo, T. (2021). A new approach to modelling the input-output structure of regional economies using non-survey methods. Journal of Economic Structures, 10, Article 12. https://doi.org/10.1186/s40008-021-00242-8

JYU authors or editors

Publication details

All authors or editorsFlegg, Anthony T.; Lamonica, Guiseppe R.; Chelli, Francesco M.; Recchioni, Maria C.; Tohmo, Timo

Journal or seriesJournal of Economic Structures


Publication year2021

Publication date16/07/2021


Article number12

PublisherSpringer Science and Business Media LLC

Publication countryGermany

Publication languageEnglish


Publication open accessOpenly available

Publication channel open accessOpen Access channel

Publication is parallel published (JYX)https://jyx.jyu.fi/handle/123456789/77188

Additional informationCorrection to: A new approach to modelling the input–output structure of regional economies using non‑survey methods http://dx.doi.org/10.1186/s40008-021-00247-3


This paper proposes a new approach to the regionalization of national input–output tables where suitable regional data are scarce and analysts are considering using location quotients (LQs). We focus on the FLQ formula, which frequently yields the best results of the pure LQ-based methods, and develop an enhanced way of implementing this approach. We use a modified cross-entropy (MCE) method, along with a regression model, to estimate values of the unknown parameter δ in the FLQ formula, specific to both region and country. An analysis of survey-based data for 16 South Korean regions reveals that the proposed FLQ+ approach yields more accurate estimates of both input coefficients and sectoral output multipliers than those from simpler LQ-based methods or the MCE approach alone. Sectoral outputs (or employment) are the only regional data required. The MCE method also clearly outperforms GRAS.

Keywordsregional developmentregional economyevaluationinput-output analysismethods

Fields of science:

Contributing organizations

Ministry reportingYes

Reporting Year2021

JUFO rating1

Last updated on 2024-03-04 at 19:55