This paper proposes a new approach to construct IO Table called“ Reduced Form Approach.” There are a survey method and a non-survey method for constructing the regional input-output table. This paper proposes a hybrid approach that combines a survey method in terms of utilizing individual information and a survey method in the sense of conducting a questionnaire survey of business establishments.
The most difficult part of constructing a regional input-output table is estimating the value of exports and imports. Furthermore, in an open regional economy, exports and imports have a large weight. In many of the conventional methods, the import/export rate was taken from the input-output table of the prefecture, and the import/export value was extracted as the residual of the expenditure balance. In this paper, we propose a “Reduced Form Approach” that reproduces the input-output table from the production induced value. This not only overcomes the difficulty of balance adjustment, but also realizes the visibility of simulation analysis using an input-output table.