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Peculiarities and Usefulness of Multipliers, Elasticities and Location Quotients for the Regional Development Planning: An Other View

This paper is available in a repository.
This paper is available in a repository.

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Preprint: policy unknown
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Postprint: policy unknown
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Abstract

In this paper, the peculiarities of type I multipliers and elasticities and their differences on thegenerated results for the proposed developmental priorities are examined. Moreover the influencesof the used non-survey techniques (Simple Location Quotient, Cross Industry Location Quotientand Flegg’s Location Quotient) among the sectoral rankings from the type I multipliers andelasticities are scrutinized. For the target of the paper, the economy of Western Macedonia region inGreece has been used as an example for the secondary simulation. The results show that the type Imultipliers and elasticities are not end up to same sectoral rankings due to their different definitionand are not the same suitable indicators for short-term and long-term developmental planning.Nevertheless, their coexistence could improve the economic prosperity both on short and longperiod of time. As for the used location quotient, the FLQ technique improves the proximity of thesectoral rankings that are generated from all the used indicators and also reduces the magnitudes oftype I multipliers and elasticities.