Regional Input--Output Tables and the FLQ Formula: A Case Study of Finland

F<sc>legg</sc> A. T. and T<sc>ohmo</sc> T. Regional input -- output tables and the FLQ formula: a case study of Finland, <italic>Regional Studies</italic>. This paper examines the use of location quotients (LQs) in constructing regional input -- output tables. Its focus is on the modified FLQ formula proposed by Flegg and Webber in 1997. Using data for twenty Finnish regions of widely different size, a regression model is developed to assist in the selection of a value for the unknown parameter <italic>δ</italic> in this formula. It is found that the FLQ yields results far superior to those from standard LQ-based formulae. The FLQ-based initial set of regional input coefficients could be used to build the non-survey foundations of a hybrid model or as part of the RAS procedure.