Regional Input--Output Tables and the FLQ Formula: A Case Study of Finland

Anthony T. Flegg and Timo Tohmo

Regional Studies, 2013, vol. 47, issue 5, 703-721

Abstract: Flegg A. T. and Tohmo T. Regional input -- output tables and the FLQ formula: a case study of Finland, Regional Studies . This paper examines the use of location quotients (LQs) in constructing regional input -- output tables. Its focus is on the modified FLQ formula proposed by Flegg and Webber in 1997. Using data for twenty Finnish regions of widely different size, a regression model is developed to assist in the selection of a value for the unknown parameter δ in this formula. It is found that the FLQ yields results far superior to those from standard LQ-based formulae. The FLQ-based initial set of regional input coefficients could be used to build the non-survey foundations of a hybrid model or as part of the RAS procedure.

Date: 2013
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Citations: View citations in EconPapers (46)

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DOI: 10.1080/00343404.2011.592138

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