Application of the FLQ–RAS Mixed Method for Estimating Multi-Regional Input–Output Table (MRIOT) in Iran

Abstract

The problem of spatial equilibrium and disequilibrium has always been one of the main concerns of policy makers and regional planners in Iran. Two prerequisites, which have not been considered by regional analysts in Iran, are highlighted to explain this problem: First, the recognition of theoretical foundations of place-based and place-neutral theories, and, second, the use of integrated and coherent statistics such as the MRIOT. The main purpose of this paper is to examine these two issues while using a multi-regional model with special emphasize on the feedback effects, based on following three questions: Is there a direct relationship between the size of GDP of different regions with their spillover and feedback effects? Which regions have a greater role in the spatial equilibrium? And finally, which sectors do play a greater role in the spatial equilibrium of the country? For answering the above questions, for the first time in Iran, the MRIOT is calculated. The MRIOT comprises nine regions based on the latest approval of the Supreme Council for Spatial Planning using the FLQ-RAS mixed method, within the framework of seven economic sectors for year 2011. Findings show that: First, there is no direct relationship between the size of GDP and the spillover effects of the regions. Second, the feedback effects of the regions with smaller GDP are higher which would potentially play a greater role in creating spatial equilibrium in the country. Third, the feedback effects of the agricultural related industries in eight regions are higher than that of the other economic sectors. This suggests that, this sector can be considered as the driving force behind the spatial equilibrium in the country.

Keywords

• multi-regional input-output model
• spatial equilibrium and disequilibrium
• feedback and spillover effects
• flq-ras mixed model