Appropriate assumption on cross-hauling national input–output table regionalization |
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Authors: | Takashi Fujimoto |
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Institution: | Faculty of Economics, Osaka University of Economics, Osaka, Japan |
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Abstract: | Input–output tables are useful for regional economic analyses. Although scholars often regionalize national input–output tables, cost-related issues make surveying regional trade flow difficult; hence, non-survey approaches are implemented instead. While location quotient (LQ) approaches have been used widely, they ignore cross-hauling in interregional trade. Therefore, alternative non-survey approaches with different assumptions on cross-hauling are used, such as cross-hauling depends on regional size and cross-hauling is proportional to its potential determined by output or demand. This study concludes that the most appropriate assumption, as per the relative performance of non-survey approaches, is that cross-hauling is in proportion to trade volume. |
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Keywords: | input–output table regionalization interregional trade cross-hauling |
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