Reconciling Domestication Techniques, the Notion of Re-Exports, and Some Comments on Regional Accounting

Recent work by Jackson (1998) in this Journal subtly pointed out a means of forming direct input coefficient matrices from national technology that is different from that published elsewhere. In this paper, I rationalize his approach and also point out that prior approaches may still be useful in certain applications where the phenomenon of re-exports (imports that satisfy exports) are explicit in exports accounts. In the second half of this paper, I show some means of developing regional accounts, currently being used in the U.S., that are more elaborate than those Jackson discussed. For example, I substitute regional shares of employment with earnings shares to obtain productivity adjusted regional output. I also suggest using available regional value added and regional labor income when producing regional use matrices