Empirical evidence on the use of the FLQ formula for regionalizing national input-output tables: The case of the Province of C¨®rdoba, Argentina

This paper uses survey-based data for the Argentinian province of C¨®rdoba to carry out an empirical test of the performance of the FLQ formula for regionalizing national inputoutput tables. Particular attention is paid to the problem of choosing a value for the unknown parameter ¦Ä in this formula. Two alternative approaches suggested in the literature are evaluated. A statistical test is also performed of differences between regional and national technology, and Round¡¯s ¡®fabrication¡¯ formula is applied in an effort to make suitable adjustments for such differences. However, the FLQ formula, without any fabrication adjustments, is found to give the best overall results of the non-survey methods considered in the paper.