On Regionalizing a National Inter-Industry table

Nanda K. Choudhry and Ravindra H. Dholakia

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: In this paper we have proposed and evaluated a new non-survey method whereby a national input-output coefficient matrix may be decomposed into a set of regional input-output coefficients matrices. The method is based on the technique of generalised inverse. It obeys certain restrictions that have intuitive plausibility. To evaluate the method proposed here, the Canadian national and regional data for the year 1974 have been used. Dalvi and Prasand (1981, 1982) demonstrated that their method of using the Moore Penrose generalised inverse to regionalise the national table was found more efficient than the popular RAS method. We demonstrate in this paper that the method proposed by us here is more satisfactory than the one proposed by Dalvi and Prasad both in terms of its economic implications as well as its empirical performance.

Date: 1986-02-01
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Persistent link: https://EconPapers.repec.org/RePEc:iim:iimawp:wp00675

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