Integrating Organizational Proximity into Multi-Regional Input–Output Table Construction: A Spanish Case Study

High-resolution multi-regional input–output (MRIO) tables are important for tracing how economic shocks propagate across regions. Yet approaches that estimate bilateral interregional flows often rely on spatial proximity, potentially overlooking production and service linkages structured through corporate networks. We extend a Bayesian spatial econometric framework for MRIO disaggregation by incorporating organizational proximity, measured through directional headquarters–subsidiary linkages between regions. Applied to Spain, the framework disaggregates the national input–output table across 59 subnational regions at the NUTS-3 level and estimates sector-specific interaction functions combining spatial and organizational proximity. Results show that incorporating organizational proximity improves model fit relative to a spatial-only benchmark, with the largest organizational-proximity estimates found in construction and the service-sector aggregates. A simulation further shows that organizational proximity alters the estimated spatial distribution of shock spillovers, affecting which regions appear more exposed to shocks.