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.