Appropriate assumption on cross-hauling national input–output table regionalization

Takashi Fujimoto

Spatial Economic Analysis, 2019, vol. 14, issue 1, 106-128

Abstract: Input–output tables are useful for regional economic analyses. Although scholars often regionalize national input–output tables, cost-related issues make surveying regional trade flow difficult; hence, non-survey approaches are implemented instead. While location quotient (LQ) approaches have been used widely, they ignore cross-hauling in interregional trade. Therefore, alternative non-survey approaches with different assumptions on cross-hauling are used, such as cross-hauling depends on regional size and cross-hauling is proportional to its potential determined by output or demand. This study concludes that the most appropriate assumption, as per the relative performance of non-survey approaches, is that cross-hauling is in proportion to trade volume.

Date: 2019
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DOI: 10.1080/17421772.2018.1506151

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