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
Abstract
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
