Cross-industry and simple location quotient techniques for constructing regional input -output models

Abstract

Within the last twenty years, an increasing number of policy decisions at all levels of governmental and business enterprises have required on extensive knowledge of regional economic conditions. A regional input-output or inte industry model can help business firms and govermental bodies to take decisions about investments and development projects in a region. As we know, a regional input-output model represents the structure of a regional economy at sectoral !evel. So an analyst or a manager by using the model can understand the potentiality of a regional sector and its production flow in monetary or physical terms. This information can help the managers to take decisions in their investment projects. A regional input-output model can assist in other studies by collecting and presenting regional data in analytically useful form. Especially, it is chosen as a main planning tool for regional development. On the other hand, a regional input-output model can be useful in the analysis of environmental and ecological problems in a region. The purpose of this paper is to explain cross-industry and simple location quotient techniques in it construction of a regional input-output models.