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Firstly, input-output analysis as such is a theoretically simple and practically appealing method of treating interdependencies in an economic system. In a regional perspective, the method is increasingly useful in forecasting medium term regional growth and stagnation in view of the integration of interregional and international trade patterns.

Secondly, much effort has been devoted to the task of actually constructing interregional input-output tables, especially in view of the enormous amounts of data needed in a full interregional and intersectoral table. In fact the literature on interregional inputoutput models (see, for example, Riefler, 1973), contains a series of examples of assumptions made to reduce the amount of data required to make estimations tractable. There is still a lack of theoretically well underpinned explanatory models of regional trade flows (see, for example, Gordon, 1976, for an attempt at developing …