Input-Output Modeling in Regional Economic Analysis
Summary
Input-output modelling provides a quantitative framework for tracing economic transactions between industries and regions, exposing the direct and indirect interdependencies that underpin regional economies. Originating from national accounts, these models have been adapted to subnational scales to inform policy on regional planning, infrastructure investment and environmental management. By constructing regional input-output tables—either through exhaustive surveys or via non-survey techniques such as location quotients, cross-entropy methods and gravity models—analysts can estimate how a shock in one sector propagates through supply chains to affect employment, value added and environmental outcomes elsewhere. Multi-regional input-output (MRIO) extensions integrate several regions into a single framework, capturing interregional trade flows and spillovers. Advances in spatial econometrics and system-dynamics integration have enhanced the dynamism and spatial resolution of these models, enabling assessments of policy scenarios ranging from renewable energy deployment to urban carbon footprints. The global significance of regional input-output analysis lies in its capacity to guide tailored interventions, promote balanced development and evaluate trade-off decisions across social, economic and environmental objectives.
Research from Nature Portfolio
No recent Nature Portfolio content available.
Input-Output Modeling in Regional Economic Analysis publication trend
The graph below shows the total number of articles in input-output modeling in regional economic analysis across all publications each year (not limited to Nature Index journals).
Technical terms
Input-Output Table: A matrix representation of intersectoral transactions, showing how outputs from each industry serve as inputs to others.
Multi-Regional Input-Output (MRIO) Model: An extension that links input-output tables for multiple regions to capture interregional trade and spillover effects.
Location Quotient (LQ): A ratio used to regionalise national input-output coefficients by comparing local industry shares to national averages.
Gravity-RAS Method: A non-survey technique combining gravity-model allocation of trade flows with RAS balancing to estimate interregional transactions.
Sectoral Multiplier: A coefficient measuring the total economic impact (direct plus indirect) of a unit change in final demand for a given sector.
References
- European multi regional input output data for 2008–2018. Scientific Data (2023).
- Socioeconomic impacts of wind farms in small and rural areas: a case study in North-eastern Spain. Clean Technologies and Environmental Policy (2025).
- (Inter)regional Input-Output Table Estimation: from Surveys to Spatial Econometrics. Central European Journal of Economic Modelling and Econometrics (2025).
- Fully Dynamic Input-Output/System Dynamics Modeling for Ecological-Economic System Analysis. Sustainability (2018).
About these summaries
This Nature Research Intelligence Topic summary is created with the cited references and a large language model. We take care to ground generated text with facts, and have systems in place to gain human feedback on the overall quality of the process in line with our AI principles. We strive to create accurate and useful summaries for people unfamiliar with the research topic and that supports this goal. These pages are a beta release and will be updated as we learn how best to help people gain value from a research topic summary.
Turn complex research questions into confident strategic decisions
When you're under pressure to set direction, justify investment, or understand your competitive position, you need more than raw data — you need trusted insights you can act on.
Benchmark your performance against global peers using robust, methodologically sound analysis.
Combine quantitative metrics with qualitative expert insight to uncover strengths, gaps and emerging opportunities.
Gain tailored, decision-ready recommendations aligned to your strategic priorities.
Talk to us to learn more about our data dashboards and bespoke strategy reports.
Grow research skills, confidence and careers with training built for every stage of the research lifecycle.
Developed with Nature Portfolio journal Editors and internationally renowned experts. Discover three ways to learn:
Self-paced, online courses in convenient bite-sized units, covering key skills across scientific writing, publishing, grant writing, data analysis, and more.
Expert trainer-led workshops with hands-on exercises and real-time feedback across core research skills, delivered via interactive group sessions.
Editor-led workshops combining core principles in writing and publishing, personalised 1:1 feedback from Nature Portfolio Editors and hands-on exercises.
Explore course catalogues and workshop agendas, enquire about the options or request institutional pricing.