A bidimensional reformulation of location quotients for generating input–output tables

Xesus Pereira, Andre Carrascal Incera, Melchor Fernandez Fernandez

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

The difficulties in obtaining input–output tables at subnational levels have led to multiple methodological developments in order to obtain local technical coefficients using semi-survey approaches. A widely accepted method is based on the use of location quotients (LQ) according to Flegg's formula (AFLQ). However, it makes the adjustment of purchasing sectors proportionally to the productive specialization, which has significant implications for the estimation of domestic coefficients. In this paper, an alternative formulation is presented as a generalization of Flegg's methodology, characterized by using a bidimensional approach that provides better results, as shown in the empirical application implemented.
Original languageEnglish
JournalSpatial Economic Analysis
DOIs
Publication statusPublished - 18 Mar 2020

Keywords

  • location quotients
  • input–output tables
  • regional economies

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Economics, Econometrics and Finance(all)
  • Statistics, Probability and Uncertainty
  • Earth and Planetary Sciences (miscellaneous)

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