Inter-regional trade flow estimation through non-survey models: An empirical assessment

Inter-regional trade estimation has been pointed out as a crucial problem when constructing a multiregional input-output system. Knowledge of inter-regional trade flows, at least of the pooled volume of exports and imports by commodity, is critical in accounting for important spillover and feedback effects deriving from inter-regional linkages. However, in most countries, there are no completely reliable survey-based statistics on inter-regional trade. Thus, this paper intends to evaluate the reasonability of using indirect inter-regional trade estimates, comparing different estimating methods and assessing the sensitivity of the model results. Based on our empirical comparisons we conclude that input-output models are not greatly affected by the insertion of different trade values. Thus, our results support the use of indirect estimates for inter-regional trade, whenever survey-based data are unavailable.