The Korean Journal of Economic Studies
Estimation of Regional Input-Output Tables Using Weighted Location Quotients of Employment and Output
Hana Kwon (Kyungpook National University) and Sung-Goan Choi (Andong National University)Year 2021Vol. 69No. 2
The regional input-output model (RIO model) is an effective analytical tool in establishing and evaluating regional policies. However, despite its usefulness, a considerable cost and statistical data are required to create a RIO model by a survey method, and thus non-survey or partial survey method shave attracted researchers. The purpose of this study is to propose the weighted location quotients (WLQ) method as an alternative to a non-survey method and to verify its validity. This study shows that the WLQ method yields estimation results and suitability that can improve the overestimation and distortion problems of the non-survey RIO model compared to the previous methods. In addition, this can be applied not only to reflect the characteristics of the sizeof the region and the productivity of each industry in the creation of the RIO model, but also to analyze the economic impact in a region where statistical data are not sufficient.