Implementing a multiregional input-output model: The case of Queensland

Input-output analysis is a flexible technique capable of being used for a wide variety of applications, particularly at a regional level. Incorporating input-output tables into a multiregional framework provides an opportunity for increasing the flexibility of the technique. Historically, very few multiregional models have been generated. This has been due to the paucity of data available at a regional level, especially data covering interregional trade flows. Where the technique has been applied it has often relied on input-output tables and trade data estimated through the application of location quotient procedures. This paper briefly outlines the approach used in the implementation of the Queensland multiregional input-output model. The limitations of a nonsurvey implementation of the model such as that of Guild (1998) are addressed in this approach. The methodology adopted includes the incorporation of superior data into the model, and table modification using a process of data reconciliation. Reconciling the estimated tables and trade flows with the official state table ensures consistency between these two sets of accounts. In addition, this process has been shown to improve the information content of the tables.