Estimating SFLQ-based regional input-output tables for South Korean regions

The present study employed official input-output data for 17 regions in South Korea from 2015 to analyze the industry-specific Flegg location quotient (SFLQ) formula as a tool for estimating regional input-output tables. The paper builds on the work of Kowalewski (2015), who proposed an interesting variant of the Flegg location quotient (FLQ) by letting the value of the parameter δ in the FLQ vary across industries. The main aim of the present study was to employ Kowalewski's SFLQ formula to produce estimated regional input-output tables for South Korea and to examine the accuracy of the resulting estimates. We estimated Kowalewski's regression model for all Korean regions in 2015, something that has not previously been performed. Subsequently, we compared the regionalized SFLQ-based estimates with the official regional input-output tables produced by the Bank of Korea. We tested the accuracy of the estimations using different statistics.