A methodological proposal for the construction of a regional input-output matrix using a bottom-up approach and its statistical assessment

Abstract

The main purpose of this essay is to develop and implement a methodology for the construction of a regional input-output matrix using a bottom-up approach and compare it to the one made using a top-down approach, using as a case study the state of Sonora in México. We assume that the regional matrix, constructed with using a top-down approach, is inadequate for the comprehension of regional economic behavior and its structural economic and spatial attributes, and therefore it becomes necessary to rely on a bottom-up approach for the construction of regional input-output matrices.Our main concern is to develop a bottom-up methodology for the construction of regional input-output matrices and to show differences and similarities with the top-down approach, through a statistical assessment based on the statistical association between census data of both regional and national economic structures. Therefore, the main outcomes of this research are: 1) a review of the main methodological features of the debate for the construction of a regional input-output matrix; 2) a methodological proposal for the construction of a regional input-output matrix, using a bottom-top approach, and 3) an statistical assessment of the main differences and similarities between the construction of regional input-output matrices using both approaches, using as a case study the state of Sonora, Mexico.