Branchen und Wirtschaftszweige, Konjunktur, Regionen

Regionalization of national input-output tables: empirical evidence on the use of the FLQ formula

11.06.2012 | HWWI Research Paper | von Julia Rose

This paper contributes to the ongoing debate about deriving the value of the exponent; when using Flegg’s location quotient (FLQ) formula which helps to simulate regional input-output tables. Using a survey-based regional input-output table, the empirical analysis provides evidence of an optimal; for the German Federal of State Baden-Wuerttemberg. Furthermore, an extended formula (SFLQ) is introduced allowing for variation in; by industry. Finally, this paper demonstrates the advantage of the SFLQ and finds evidence for a close relationship between the spatial concentration of an industry at the national level and its propensity to import goods and services from other regions.