Open Access Article SciPap-922
Use of the Location Quotients for Regional I-O Tables Creation and Estimation of Regional Multipliers
by Peter Džupka 1,* iD icon

1 Faculty of Economics, Department of Regional Sciences and Management, Technical University of Košice, Němcovej 32, Košice 04001, Slovakia

* Authors to whom correspondence should be addressed.

Abstract: The main purpose of this paper is to present the possibilities of using economic impact analysis on regional level with use of regional multipliers. The main limitation of economic impact analysis use on regional level is unavailability of regional multiplier in most of the EU countries. This article presents the possibility of the regional I-O table’s derivation using local quotients. Different types of local quotients are critically analysed within the article with aim to find most suitable for derivation of regional I-O matrix in Slovakia. With the use of Flegg´s local quotient (FLQ) the derivation of selected regional I-O matrixes is described. The next part of the paper describes full set of regional multipliers which can be derived from regional I-O matrix and presents results for several sectors in Košice region. The last part of the paper discuss some special peculiarity of regional multipliers use in economic impact analysis and presents results of estimated regional multiplies for selected economic sectors in five Slovak regions.

Keywords: Economic Impact Analysis, Input-Output Analysis, Regional Multipliers, Flegg´s Local Quotient (Flq)

JEL classification:   R15 - Econometric and Input–Output Models • Other Models

SciPap 2018, 26(1), 922

Received: 10 July 2017 / Accepted: 1 March 2018 / Published: 5 April 2018