Abstract
This paper presents theory and methods used to construct an interregional commodity by industry flow matrix for the United States. The interregional flow matrix method involves the construction of single-state (and DC) social accounting matrices (SAMs) using data derived from IMPLAN. Once complete, the interregional flows connecting states are estimated using a method based on the commodity flow survey data published by the Bureau of Transportation Statistics. The estimated interregional SAM is then adjusted to insure the integrity of intra-regional and system-wide accounts. The procedures have been designed with ease of replicability as a goal so that updates and extensions of the database can be generated efficiently and at low cost as new data are released. The resulting US interregional framework describes flows within and among the 51 regions. The method is flexible and will provide a valuable database for a broad range of analyses on regions, interregional relationships, and policy.
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Notes
The authors have no formal relationship with IMPLAN. The approach we present here should be transferable to other data foundations that have corresponding informational content and data.
SCTG—Standard Classification of Transported Goods codes are used by the BTS.
Where the SCTG sectors do not match the model sectors precisely data for industries with similar output characteristics are used.
For non-goods commodity sectors (such as higher-level services), averages of the regression parameters from the goods sectors were used. This reflects the assumption that interregional trade in these sectors is related to information flows, which should be reflected by patterns of overall trade. Note that IMPLAN provides the estimate of total exports of these commodities, while our procedure estimates only the interregional distributions of the exports.
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The authors gratefully acknowledge the support of the Bureau of Economic Analysis, National Science Foundation Grant BCS-0318080, and helpful comments of colleagues.
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Jackson, R.W., Schwarm, W.R., Okuyama, Y. et al. A method for constructing commodity by industry flow matrices. Ann Reg Sci 40, 909–920 (2006). https://doi.org/10.1007/s00168-006-0072-8
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DOI: https://doi.org/10.1007/s00168-006-0072-8