An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients

In this paper, we examine alternative methods of computing regional input–output (IO) coefficients, with an emphasis on their relative accuracy and the complexity of the computations required. Our focus is on the well-known FLQ (Flegg’s location quotient) approach. Although the FLQ formula often yie...

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Detalhes bibliográficos
Autores: Flegg, Anthony T., Pereira López, Xesús, Sánchez Chóez, Napoleón Guillermo, Torre Cuevas, Fernando de la, Tohmo, Timo
Formato: artículo
Fecha de publicación:2025
País:España
Recursos:Universidad de Santiago de Compostela (USC)
Repositorio:Minerva. Repositorio Institucional de la Universidad de Santiago de Compostela
Idioma:inglés
OAI Identifier:oai:minerva.usc.gal:10347/42351
Acesso em linha:https://hdl.handle.net/10347/42351
Access Level:acceso abierto
Palavra-chave:Regional input–output tables
Non-survey methods
FLQ
2D-LQ
HTLQ
SFLQ
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oai_identifier_str oai:minerva.usc.gal:10347/42351
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spelling An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output CoefficientsFlegg, Anthony T.Pereira López, XesúsSánchez Chóez, Napoleón GuillermoTorre Cuevas, Fernando de laTohmo, TimoRegional input–output tablesNon-survey methodsFLQ2D-LQHTLQSFLQIn this paper, we examine alternative methods of computing regional input–output (IO) coefficients, with an emphasis on their relative accuracy and the complexity of the computations required. Our focus is on the well-known FLQ (Flegg’s location quotient) approach. Although the FLQ formula often yields satisfactory results, the need to specify values of the unknown parameter δ in this formula presents an obstacle to its implementation. After examining the FLQ’s conceptual foundations, we develop a possible new approach that obviates the use of this parameter. Instead, the new formula, the hyperbolic tangent LQ or HTLQ, incorporates an alternative proxy for regional self-sufficiency in terms of a new parameter . We argue that, in most cases, it would be reasonable to set = 0.5 . We test our proposal using the 2005 and 2015 Korean survey-based interregional IO datasets and contrast our estimates with both survey-based values and the results from several other techniques. The results suggest that the new formula can yield more accurate estimates of regional IO coeff icients and multipliers, and in a more straightforward way, than is possible with the traditional FLQ.SpringerUniversidade de Santiago de Compostela. Departamento de Economía CuantitativaUniversidade de Santiago de Compostela. Departamento de Fundamentos da Análise Económica20252025-03-2920252025-03-29journal articlehttp://purl.org/coar/resource_type/c_6501VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10347/42351reponame:Minerva. Repositorio Institucional de la Universidad de Santiago de Compostelainstname:Universidad de Santiago de Compostela (USC)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2© The Author(s) 2025http://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:minerva.usc.gal:10347/423512026-06-15T12:47:27Z
dc.title.none.fl_str_mv An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients
title An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients
spellingShingle An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients
Flegg, Anthony T.
Regional input–output tables
Non-survey methods
FLQ
2D-LQ
HTLQ
SFLQ
title_short An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients
title_full An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients
title_fullStr An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients
title_full_unstemmed An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients
title_sort An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients
dc.creator.none.fl_str_mv Flegg, Anthony T.
Pereira López, Xesús
Sánchez Chóez, Napoleón Guillermo
Torre Cuevas, Fernando de la
Tohmo, Timo
author Flegg, Anthony T.
author_facet Flegg, Anthony T.
Pereira López, Xesús
Sánchez Chóez, Napoleón Guillermo
Torre Cuevas, Fernando de la
Tohmo, Timo
author_role author
author2 Pereira López, Xesús
Sánchez Chóez, Napoleón Guillermo
Torre Cuevas, Fernando de la
Tohmo, Timo
author2_role author
author
author
author
dc.contributor.none.fl_str_mv Universidade de Santiago de Compostela. Departamento de Economía Cuantitativa
Universidade de Santiago de Compostela. Departamento de Fundamentos da Análise Económica
dc.subject.none.fl_str_mv Regional input–output tables
Non-survey methods
FLQ
2D-LQ
HTLQ
SFLQ
topic Regional input–output tables
Non-survey methods
FLQ
2D-LQ
HTLQ
SFLQ
description In this paper, we examine alternative methods of computing regional input–output (IO) coefficients, with an emphasis on their relative accuracy and the complexity of the computations required. Our focus is on the well-known FLQ (Flegg’s location quotient) approach. Although the FLQ formula often yields satisfactory results, the need to specify values of the unknown parameter δ in this formula presents an obstacle to its implementation. After examining the FLQ’s conceptual foundations, we develop a possible new approach that obviates the use of this parameter. Instead, the new formula, the hyperbolic tangent LQ or HTLQ, incorporates an alternative proxy for regional self-sufficiency in terms of a new parameter . We argue that, in most cases, it would be reasonable to set = 0.5 . We test our proposal using the 2005 and 2015 Korean survey-based interregional IO datasets and contrast our estimates with both survey-based values and the results from several other techniques. The results suggest that the new formula can yield more accurate estimates of regional IO coeff icients and multipliers, and in a more straightforward way, than is possible with the traditional FLQ.
publishDate 2025
dc.date.none.fl_str_mv 2025
2025-03-29
2025
2025-03-29
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/10347/42351
url https://hdl.handle.net/10347/42351
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
© The Author(s) 2025
http://creativecommons.org/licenses/by/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
© The Author(s) 2025
http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
dc.source.none.fl_str_mv reponame:Minerva. Repositorio Institucional de la Universidad de Santiago de Compostela
instname:Universidad de Santiago de Compostela (USC)
instname_str Universidad de Santiago de Compostela (USC)
reponame_str Minerva. Repositorio Institucional de la Universidad de Santiago de Compostela
collection Minerva. Repositorio Institucional de la Universidad de Santiago de Compostela
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,811543

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