The SFLQ revisited: Estimating Regional Input-Output Tables for South Korean Regions

Abstract

Abstract The present study employs survey-based data on 16 regions in South Korean to analyse the industry-specific Flegg location quotient (SFLQ) formula as a tool for estimating regional input-output tables. Our paper contributes to the work of Kowalewski (2015), who proposed an interesting variant of the Flegg location quotient (FLQ) by letting the value of δ in the FLQ vary between sectors (sector-specific δ). The main aim of our study is to analyse Kowalewski’s SFLQ formula to produce regional input-output tables for South Korea and to test the extent of the accuracy of the estimates it can produce. We estimate Kowalewski’s regression model for all Korean regions, which has not been previously performed. Consequently, we compare the regionalized SFLQ estimates to survey-based regional input-output tables and test the accuracy of the estimations with different statistics.