Abstract:
Manufacture of coke، refined petroleum products and nuclear fuel is one of the ISIC (International Standard Industrial Classification of All Economic Activities، Rev.2) that produced 8.5 percent of industry value-added in Iran in 2007. Isfahan، Tehran، Khuzestan، Hormozgan، and Markazi provinces accounted for 90 percent of the value added in this sector. To determine competitive advantage in this sector، the regional input- output technique is used and AFLQ (Adjusted Flegg Location Quotient) is employed for making regional input- output tables. But this method is misleading، because it defines weak provinces as key sectors. This article presents new method (MFLQ) that provides better result than AFLQ. Isfahan (as a developed province) is not key sector in AFLQ method but it is key sector by MFLQ method.
Machine summary:
The authors of this article present a newer MFLQ location quotient method for constructing regional input-output tables, which is capable of providing better and more appropriate results.
In this study, the sector "Manufacture of coke, refined petroleum products and nuclear fuels" in the provinces of Ardabil, Razavi Khorasan, North Khorasan, Khuzestan, Zanjan, Semnan, Qazvin, Qom, Kurdistan, Golestan, Gilan, Lorestan, Mazandaran, Hamedan and Yazd, has been identified as a key sector (a sector that is leading from both the supply and demand sides).
2 5- Calculation and Analysis To demonstrate the flaws and shortcomings of the traditional AFLQ method and also to show the superiority of the MFLQ method results, 50 provincial input-output tables were prepared using two methods, and only the results related to the sector "Manufacture of coke, refined petroleum products and nuclear fuels" were analyzed.
After obtaining statistics and information from the Statistical Center for the year 1386, the location quotient of the "Manufacture of coke, refined petroleum products and nuclear fuels" sector for the provinces was calculated, which is presented in Table No. 1.
930 Source: Research results According to the table above, in the conventional AFLQ method, provinces that are weak in the manufacture of coke and refined petroleum products and nuclear fuels sector have a dispersion index higher than one and are identified as demand-side leaders.
After preparing 25 the provincial input-output table and calculating the import volume of the "manufacture of coke and petroleum products and nuclear fuels" sector, it was shown that the method produces results that are the opposite of the interpretation of excess supply and excess demand of location quotient.