2020
DOI: 10.1080/17421772.2020.1720918
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Testing and implementing a new approach to estimating interregional output multipliers using input–output data for South Korean regions

Abstract: Flegg's location quotient (FLQ) is a useful tool in estimating intraregional output multipliers. Here we use it as one component in estimating interregional multipliers. Using statistical information criteria, we demonstrate that, for South Korea, the best approach is to combine the FLQ with a simple trade model. Since the interregional trade flows do not seem to depend much on distances or adjacency, a gravity model is not required. We also find that the industry-specific FLQ (SFLQ) yields the best results wh… Show more

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Cited by 25 publications
(22 citation statements)
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“…Input-output coefficients were regionalized by applying Flegg's location quotient (FLQ), method proposed by Flegg, Webber, and Elliott (1995). Even if several methods can be used to regionalize the input-output coefficients, it is now well established that the FLQ method can give more precise results than alternative approaches, like SLQ or the CILQ [36,37]. Employment multipliers highlighted in bold represent the extra number of persons employed in all industries in the economy for one extra person employed in the industries under investigation.…”
Section: Economic Analysismentioning
confidence: 99%
“…Input-output coefficients were regionalized by applying Flegg's location quotient (FLQ), method proposed by Flegg, Webber, and Elliott (1995). Even if several methods can be used to regionalize the input-output coefficients, it is now well established that the FLQ method can give more precise results than alternative approaches, like SLQ or the CILQ [36,37]. Employment multipliers highlighted in bold represent the extra number of persons employed in all industries in the economy for one extra person employed in the industries under investigation.…”
Section: Economic Analysismentioning
confidence: 99%
“…Thus, its estimates differ directly with δ and the truncated SLQ. Jahn, Flegg, and Tohmo (2020) recommend a δ value of 0.3. Using WIOD data, we performed a rough search over values of δ; our results are presented in the Table 2.…”
Section: Rpc Estimatesmentioning
confidence: 99%
“…It is therefore essential to select which LQ will be used, either alone or supplemented by adjustment techniques (Lamonica et al 2020). While there is no clear majority on which LQ yields the best results, some studies (Bonfiglio and Chelli 2008;Jahn et al 2020)show the prevalence of FLQ and AFLQ, yet others (Zhao and Choi 2015;Lamonica and Chelli 2018) oppose and favour other ratios.…”
Section: Introductionmentioning
confidence: 99%
“…and Smith 1974;Jackson and Murray 2004;Bonfiglio 2005;Bonfiglio and Chelli 2008;Miller and Blair 2009;Kowalewksi 2015;Wiebe and Lenzen 2016;Lamonica and Chelli 2018;Lampiris et al 2019;Lamonica et al 2020).MAPE is practically the average of STPE(Oosterhaven et al 2003;Mínguez et al 2009;Miller and Blair 2009;Lampiris et al 2019;Flegg and Tohmo 2019;Jahn et al 2020). SD-MAD is the standard deviation to the median absolute deviation between the estimated and true coefficients(Lamonica and Chelli 2018).…”
mentioning
confidence: 99%
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