ABSTRACT

This paper provides the necessary and sufficient conditions on the regional trade matrices that ensure that a generalised multiregional input-output MRIO model will be convergent. The three MRIO models are examined using the above conditions, and it is demonstrated that the Chenery-Moses column coefficient model satisfies them, whereas the opposite is true of the row coefficient and Leontief-Strout point-estimate gravity coefficient models. This evaluation of the three MRIO models confirms the results of empirical testing.