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One of the first improvements of this quotient was CILQ, which reflects the supply-demand relations between sectors.
If CILQ > 1, it indicates that the regional selling sector i is able to satisfy all the requirements of the regional buying sector j.
Using CILQ has its pitfalls, as stated by Morrison and Smith (1974).
The quotient is based on CILQ and takes the following form:
The indicator thus includes not only the values of CILQ indicator, which reflects the inter-sectoral connections, but also takes into account the relative size of the region using [[lambda].sup.*], and avoids the disadvantages of CILQ.
In the rare case when [delta] = 0 and therefore [[lambda].sup.*] = 1, then FLQ = CILQ. It is also true that when [[lambda].sup.*] [right arrow] 1, also the [E.sup.R] [right arrow] [E.sup.N] (Flegg & Tohmo, 2013).
It is obvious that SLQ takes into account the first and third ones and vice versa CILQ considers the first and second ones, but FLQ takes into account all three of them.
To do this, it was necessary to calculate also SLQ and CILQ.
Customs, insurance and freight inclusive CILQ Cross-Industry Location Quotient CIP Census of Industrial Production CN Combined Nomenclature (Classification of Goods) COE Compensation of Employees COICOP UN system for Classification of Individual Consumption by Purpose CSO Central Statistics Office DAFF Dept.
If the CILQ is equal to zero, then the regional technical coefficient is set equal to zero and the imports coefficient is computed as the sum of the national technical coefficient plus national import coefficient.
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- Cilo Dagi