The regionalization of national input-output tables : A study of South Korean regions

Abstract

This paper uses survey‐based data for 16 South Korean regions to refine the application of Flegg's location quotient (FLQ) and its variant, the sector‐specific FLQ (SFLQ). These regions vary markedly in terms of size. Especial attention is paid to the problem of choosing appropriate values for the unknown parameter δ in these formulae. Alternative approaches to this problem are evaluated and tested. Our paper adds to earlier research that aims to find a cost‐effective way of adapting national coefficients, so as to produce a satisfactory initial set of regional input coefficients for regions where survey‐based data are unavailable.