ent rate as a economic indicators for Virginia state as a region.
             Regional scientists have long attempted to develop meaningful definitions and measures of economic diversity and diversification, and to establish functional relationships between diversity, diversification, and economic performance. The Regional economic models where (were) created to answer questions like "What is the relationship between a region's changing economic structure and performance".
             Recent econometric models of regions were stressing macroeconomic relationship as a main idea of structuring of the model. A Number of models have been constructed for states and even smaller areas in order to find an effective forecasting tool linking the regional economic forecasting to the national economic forecast. Regional models were constructed as satellites to national models. Economic base theory views regional economic growth as being driven by exogenous final demands, notably exports. Input-output models are extensions of the economic base model, whereby intersectional economic relationships are explicitly considered Because of the underlying assumption that the regional economy is driven by exogenous final demands.
             The idea of regional economic model that is (instead of "that is" say "used") in this paper is based on two studies that present economic models of regions in US. One study, reports on a regional economic modeling approach used by East Kentucky Power Cooperative, Inc. (EKPC), a rural electric cooperative that serves 280,000 residential customers and 15,000 commercial customers in east-central Kentucky. These models use quarterly, county-level data to produce regional forecasts of income, employment, wages, population, labor force and the unemployment rate (1). Another study describes an economic model for state of Mississippi (2). Both studies indicated economic variables in regional output, labor, and income and wages blocks and estimated reg...