Abstract

AYALA GAYTAN, Edgardo Arturo  and  VALDES IBARRA, Miriam. Testing Flegg model assumptions for regionalizing input-output tables. Ens. Rev. econ. [online]. 2022, vol.41, n.2, pp.193-211.  Epub Mar 10, 2023. ISSN 2448-8402.  https://doi.org/10.29105/ensayos41.2-4.

Flegg's location quotient (FLQ) is one of the most popular non-survey methods for obtaining regional input-output tables. This method is widely adopted due to the minimum information requirements and the precision and accuracy of estimates. In this work, the assumptions of the method are econometrically contrasted with information from European Union and nine European countries. It is found that the simple location quotas of the seller's sector are more important than the ones of the buyers. Still, the FLQ model's predictive power is only slightly lower than more complex models, which reinforces the practical efficiency of the FLQ formula.

Keywords : C67; O18; R15; D57; Regional input output tables; Regionalization by quotas; FLQ Formula; Indirect methods.