Filter methods for MRIO tables: an evaluation

Abstract

Researchers who deal with network analysis based on multi-regional input–output (MRIO) tables cannot avoid the intensively discussed issue of filtering, which means identification of the most important and significant trade connections. The question of what is an appropriate filter method remains. This paper expands the existing discussion and brings new insight based on the evaluation of existing filter methods for MRIO tables. Six filter methods from the prevailing literature are identified as relevant and tested on the published MRIO tables: EORA26 and EXIOBASE. The results are verified by a case study. The evaluation shows that the Tolerable Limit approach and filter based on the Weaver–Thomas Index are the most restrictive. The Leontief filter and the filter based on holistic accuracy can be partially recommended. The filter on absolute trade values and average transactions can be recommended as ‘good’ methods.