Iranian Journal of Economic Research

The Modern Location Quotient Function, Spatial Dimension, And Regional Input-Output Coefficients: The Case of Tehran Province

Authors

Fatemeh Bazzazan 1
Ali Asghar Banouei 2
Mehdi Karami 3

1 Assistant Professor, Alzahra University, Tehran, Iran

2 Associate Professor, Allameh Tabataba`i University, Tehran, Iran

3 M.A in Economics

Abstract
Modern location quotient method (MLQM) is used to generate regional input-output coefficients (RIOCs). It has a number of functions which one should take into account in generating RIOCs and for statistical testing. The prerequisite for such statistical testing is the availability of survey- based RIOCs. This then raises the following important question: In the absence of survey based RIOCs, is it possible to apply MLQM for generating RIOCs for country like Iran? If yes, how to test the derived coefficients statistically? To answer that, we propose a new method for statistical testing through minimizing total errors using Ghosh supply side model.
 

Keywords

Spatial Economic dimension
Modern location quotient functions
Special sector
Regional coefficients
Error measurement

  • Receive Date 09 May 2016
  • First Publish Date 09 May 2016

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