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Estimating Interregional Trade Flows in Finland 1996

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A066 29.07.99 1(21) ESTIMATING INTERREGIONAL TRADE FLOWS IN FINLAND 19961 Jari Kauppila2 Abstract: One of the most important separate tasks in estimating regional input-output tables is the estimation of interregional trade flows. Thus, when a project to compile the regional input-output tables began in summer 1997 in Finland one of the first steps was to set up a survey for estimating the interregional trade flows. This paper will focus on the estimation of trade flows in Finland in 1996. Special attention is paid to the survey methods for the estimation. Topics such as survey approach, designing the survey, testing the questionnaire, and problems with retail and wholesale trade are discussed. In addition, we will take a look at the final response rates, problems concerning the responses, some solutions in estimations, and discuss about survey and non-survey methods. Finally, we will reveal some results from the survey. Keywords: interregional trade flows, sampling methods, survey, non-survey, regional input-output tables, regional supply and use tables. 1. INTRODUCTION As the interest in regional economies has been growing lately in Finland, it has become topical to find appropriate methods for investigating regional developments. Regional input-output tables provide a solid background for analysis on interdependencies between the regions and industries. Thus, regional input-output study was started at Statistics Finland in June 1997. While earlier studies in Finland have been focusing on an IO-table of 2-4 regions, the tables in the current project are to be constructed for the year 1995 at the level of 20 regions (NUTS 3 level) and 75 industries. In addition, IO- tables will be constructed based on supply and use (S&U) tables (see Piispala 1999 for more on the Finnish regional IO-project). One of the most important separate tasks in constructing regional input-output tables is the estimation of interregional trade flows. An accurate estimation of trade flows improves relia

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