Testing Relationships between the Relative Size and Import Coefficients:A Case study of 28 Provinces of Iran
Abstract:
In this paper we measure the relationship between relative size and propensity to imports of the regions. The measurement is empirically tested with respect to the following conventional regional theory: "the propensity to import varies inversely with the relative size of regions, thus larger regions are expected to have high multipliers, because they import less, and vice-versa". Since macro and micro regional models are not suitable for such empirical testing, regional input- output model is proposed. For this, we initially used a modified location quotient to estimate input and import coefficients of seven aggregated sectors for 28 provinces in 1380. Then, we employed the econometric techniques to empirically test the above-mentioned relationship. Overall, findings revealed that there is a meaningful relationship between the relative size of the regions and their propensity to imports.
Language:
Persian
Published:
Quarterly Journal of Quantitative Economics, Volume:5 Issue:1, 2008
Page:
1
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