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 editors: Flegg, Anthony T.; Lamonica, Guiseppe R.; Chelli, Francesco M.; Recchioni, Maria C.; Tohmo, Timo

Journal or series: Journal of Economic Structures

eISSN: 2193-2409

Publication year: 2021

Publication date: 16/07/2021

Volume: 10

Article number: 12

Publisher: Springer Science and Business Media LLC

Publication country: Germany

Publication language: English

DOI: https://doi.org/10.1186/s40008-021-00242-8

Publication open access: Openly available

Publication channel open access: Open Access channel

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

Additional information: Correction 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.

Keywords: regional development; regional economy; evaluation; input-output analysis; methods

Contributing organizations

Ministry reporting: Yes

Reporting Year: 2021

JUFO rating: 1

Last updated on 2022-20-09 at 13:54