The Regional Extraction Method: EC Input–Output Comparisons

Abstract

This paper presents a method for quantifying inter-regional linkages on the basis of a many-region input—output table. The extraction method proposed can be seen as an extension of Strassert's hypothetical extraction method. Instead of extracting one sector from a sector-based model, the effects of hypothetically extracting a region from a many-region model are considered. It is shown that the method calculates so-called backward linkages. Forward linkages are obtained analogously from the matrix of allocation coefficients. The method is applied to intercountry linkages for the EC in the years 1970 and 1980.