Proposing a new version of location quotients for estimating regional input–output coefficients: A case study of Iran’s Yazd province

Abstract

Generating regional input-output tables is difficult for various reasons including the lack of statistics and information for regional economic structures. However, the input-output model is overall one of the best and most effective quantitative methods for regional planning. Regional input-output tables can be generated through surveying and non-surveying methods. The limitations of surveying methods have led to today’s regional input-output tables often being generated through estimation (non-surveying) techniques using national input-output tables. The following paper applies the common methods of simple location quotient (SLQ), cross industry location quotient (CILQ), Flegg location quotient (FLQ) and supply-demand pool with the proposed method (ACILQ) to extract the regional coefficients for Yazd Province. The conclusions obtained from the research indicate that our proposed method, a modification of cross industry location quotient (CILQ) using a mathematical function, Tanhx, with Flegg method have more desirable results compared with other methods. This means that the two methods have higher capabilities to estimate the intermediate imports of sections as a criterion for space economy and estimate the output of each section properly. The proposed method has better results than the Flegg method. Thus, this method (ACILQ) can be a suitable criterion for adjusting national coefficients into regional coefficients (particularly for small regions). Key words: Regional input-output table, location quotients, supply-demand pool, proposed method, Yazd Province.