Assessment of the Efficiency of FLQ and AFLQ Methods in the Regionalization of National Input-Output Tables in Iran’s Economy

Hossein Aliasgharpour () and Nooraddin Sharify ()
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Hossein Aliasgharpour: Ph.D. Candidate in Economics, Faculty of Economics, University of Mazandaran
Nooraddin Sharify: Associate Professor of Economics, University of Mazandaran

Quarterly Journal of Applied Theories of Economics, 2018, vol. 5, issue 3, 103-136

Abstract: This article seeks to compare the accuracy of the Flegg’s Location Quotients (FLQ) and Augmented Flegg’s Location Quotient (AFLQ) methods in the regionalization of the national input-output table. The study of the evolution of location quotient approaches shows that although all the empirical evidence confirms the superiority of Flegg’s location quotient and its augmented methods in comparison to location quotient approaches, there is no single theory about the success of these two methods compared to each other. Therefore, the input-output table is provided for 31 provinces of the country, using the value added and output statistics of the provinces, updated national input-output table provided by Statistical Center of Iran in 2011, and the FLQ and AFLQ methods. To compare the performance of the FLQ method with the AFLQ method, five statistical indicators of estimating deviation are used. The results of the research show that in the regionalization of the national input-output table in Iran’s economy, the FLQ method is more accurate than the AFLQ in many statistical indicators, especially Tiel’s index.

Keywords: Flegg’s location quotient; Augmented Flegg’s location quotient; National input-output table; Regional input-output table; Theil’s index (search for similar items in EconPapers)
JEL-codes: C67 O18 R15 (search for similar items in EconPapers)
Date: 2018
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