The research reported in this monograph had two main objectives. The first objective was to assess the relevance, feasibility and practicality of modeling the spatial structure of a developing island economy using a hybrid procedure to generate inter-regional input-output tables. The second objective was to apply the procedure to study the spatial structure of the island economy of Indonesia. The model proved useful for analyzing the spatial structure of the island economy of Indonesia as well as the impact of policy simulations. It offers five further contributions : (1) an evaluation of the current methods used to construct single-region and inter-regional input-output tables in Indonesia; (2) the development of an appropriate hybrid procedure to construct both single-region and inter-regional input-output tables for an island economy in a developing country; (3) an application of the inter-regional input-output model to analyze the spatial structure of Indonesia’s island economy; (4) developmental methods of validating inter-regional input-output tables; and (5) analysis of the sectoral, spatial and spatial-sector significance of an island economy.