A new approach to modelling the input–output structure of regional economies using non-survey methods

Abstract This paper proposes a new approach to the regionalization of national input–output tables where suitable regional data are scarce and analysts considering using location quotients (LQs). We focus on FLQ formula, which frequently yields best results pure LQ-based methods, develop an enhanced way implementing this approach. use modified cross-entropy (MCE) method, along with regression model, estimate values unknown parameter ? in specific both region country. An analysis survey-based for 16 South Korean regions reveals that proposed FLQ+ more accurate estimates input coefficients sectoral output multipliers than those from simpler methods or MCE alone. Sectoral outputs (or employment) only required. The method also clearly outperforms GRAS.