An Extention of the Hypothetical Extracton Method to Determinate Key Regions: Backward and Forward Dependencies

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An Extention of the Hypothetical Extracton Method to Determinate Key Regions: Backward and Forward Dependencies | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article An Extention of the Hypothetical Extracton Method to Determinate Key Regions: Backward and Forward Dependencies Luis Tormo García, Francisco Morillas-Jurado, Paz Rico-Belda, and 1 more This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6427058/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The study of the linkages between regions to identify key economic regions generally uses the hypothetical extraction method proposed by Dietzenbacher et al. (1993). This approach assumes a partial hypothetical extraction (PHEM), as it excludes only intermediate input flows. We use an extension of the hypothetical extraction method (Tormo et al., 2024), referred to as full extraction (FHEM), as the extraction of a region also affects final demand and value-added flows. In this study, the FHEM is compared with the PHEM, both from a theoretical point of view, based on the decomposition proposed by Rose & Casler (1996), and from an empirical point of view, applying it to Spanish regions. The results show that, in equilibrium, full backward and full forward dependencies are similar and the PHEM does not adequately quantify the relevance of regions since it varies depending on whether they are analysed from the demand or supply side. JEL Classification: C67, D57, R15 International Economics Macroeconomics Interregional input-output model hypothetical extraction method backward dependence forward dependence and EUREGIO Full Text Additional Declarations The authors declare no competing interests. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. 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