IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/47988.html
   My bibliography  Save this paper

The Location Quotient – Assembly and application of methodological enhancements

Author

Listed:
  • Strotebeck, Falk

Abstract

The location quotient is an easy to use and often used indicator for identifying the clustering of industries, even though it struggles with some problems. This paper assembles different kinds of enhancements of the coefficient taken from the literature, which offer improvements regarding both the accurateness of the quotient and the interpretation of the results. This paper also combines two existing methodological enhancements in a new way and further applies the methods to analyze the localisation of the biotechnology industry in Germany, using data, taken from the BIOCOM Year- and Addressbook of 2005.

Suggested Citation

  • Strotebeck, Falk, 2010. "The Location Quotient – Assembly and application of methodological enhancements," MPRA Paper 47988, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:47988
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/47988/1/MPRA_paper_47988.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    2. Thomas J. Holmes & John J. Stevens, 2002. "Geographic Concentration and Establishment Scale," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 682-690, November.
    3. Bjoern Alecke & Gerhard Untiedt, 2006. "Die geografische Konzentration von Industrie und Dienstleistungen in Deutschland. Neue empirische Evidenz mittels des Ellison-Glaeser-Index," Working Papers 2-2006, GEFRA - Gesellschaft fuer Finanz- und Regionalanalysen.
    4. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2004. "The geographic distribution of production activity in the UK," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 533-564, September.
    5. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    6. Mary Amiti, 1999. "Specialization patterns in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(4), pages 573-593, December.
    7. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    8. Octávio Figueiredo & Paulo Guimarães & Douglas Woodward, 2007. "Localization Economies and Establishment Scale: A Dartboard Approach," FEP Working Papers 247, Universidade do Porto, Faculdade de Economia do Porto.
    9. Ugo Fratesi, 2008. "Issues in the Measurement of Localization," Environment and Planning A, , vol. 40(3), pages 733-758, March.
    10. Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
    11. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September.
    12. Bernard Fingleton & Danilo Camargo Igliori & Barry Moore, 2004. "Employment Growth of Small High-technology Firms and the Role of Horizontal Clustering: Evidence from Computing Services and R&D in Great Britain, 1991-2000," Urban Studies, Urban Studies Journal Limited, vol. 41(4), pages 773-799, April.
    13. Ian R. Gordon & Philip McCann, 2000. "Industrial Clusters: Complexes, Agglomeration and/or Social Networks?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 513-532, March.
    14. Dan O'Donoghue & Bill Gleave, 2004. "A Note on Methods for Measuring Industrial Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 419-427.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gugler Philippe, 2019. "Assessing the competitiveness of locations: A journey through the major theoretical insights," Economics and Business Review, Sciendo, vol. 5(3), pages 16-34, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Di Giacinto, Valter & Pagnini, Marcello, 2011. "Local and global agglomeration patterns: Two econometrics-based indicators," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 266-280, May.
    2. Barlet, M. & Briant, A. & Crusson, L., 2013. "Location patterns of service industries in France: A distance-based approach," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 338-351.
    3. Marta R. Casanova & Vicente Orts, 2011. "Assessing the Tendency of Spanish Manufacturing Industries to Cluster: Co-localization and Establishment Size," ERSA conference papers ersa10p1227, European Regional Science Association.
    4. Valter Di Giacinto & Marcello Pagnini, 2008. "Agglomeration within and between regions: Two econometric based indicators," Temi di discussione (Economic working papers) 674, Bank of Italy, Economic Research and International Relations Area.
    5. Barrios, Salvador & Bertinelli, Luisito & Eric, Strobl & Antonio Carlos, Teixeira, 2003. "Agglomeration Economies and the Location of Industries: A comparison of Three small European Countries," MPRA Paper 5704, University Library of Munich, Germany.
    6. Cutrini, Eleonora, 2009. "Using entropy measures to disentangle regional from national localization patterns," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 243-250, March.
    7. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    8. Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2013. "Spatial Localization in Manufacturing: A Cross-Country Analysis," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1534-1554, October.
    9. Maria Dav? & Isidora Barbaccia, 2015. "Measuring agglomeration by spatial effects: a proposal," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2015(1), pages 44-70.
    10. Ludwig von Auer & Andranik Stepanyan & Mark Trede, 2019. "Classifying industries into types of relative concentration," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 182(3), pages 1017-1037, June.
    11. Nakajima, Kentaro & Saito, Yukiko Umeno & Uesugi, Iichiro, 2012. "Measuring economic localization: Evidence from Japanese firm-level data," Journal of the Japanese and International Economies, Elsevier, vol. 26(2), pages 201-220.
    12. Gilles Duranton & Henry G. Overman, 2008. "Exploring The Detailed Location Patterns Of U.K. Manufacturing Industries Using Microgeographic Data," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 213-243, February.
    13. Lafourcade, Miren & Mion, Giordano, 2007. "Concentration, agglomeration and the size of plants," Regional Science and Urban Economics, Elsevier, vol. 37(1), pages 46-68, January.
    14. Hyun-Ju Koh & Nadine Riedel, 2009. "Assessing the Localization Pattern of German Manufacturing & Service Industries - A Distance Based Approach," Working Papers 080, Bavarian Graduate Program in Economics (BGPE).
    15. Giulio Bottazzi & Ugo M. Gragnolati & Fabio Vanni, 2017. "Non-linear externalities in firm localization," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1138-1150, August.
    16. repec:hal:spmain:info:hdl:2441/9932 is not listed on IDEAS
    17. Olga Alonso-Villar, 2011. "Measuring concentration: Lorenz curves and their decompositions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 451-475, October.
    18. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909, Elsevier.
    19. Pablo Martí, Federico & Arauzo Carod, Josep Maria, 2010. "Spatial distribution of economic activities: an empirical approach usingself-organizing maps," Working Papers 2072/148482, Universitat Rovira i Virgili, Department of Economics.
    20. Anne Otto & Michaela Fuchs & Wolfgang Dauth, 2011. "Long-term processes of regional concentration and dispersion - fuzzy evidence for Western Germany," ERSA conference papers ersa10p537, European Regional Science Association.
    21. Marta R. Casanova & Vicente Orts & José M. Albert, 2017. "Sectoral scope and colocalisation of Spanish manufacturing industries," Journal of Geographical Systems, Springer, vol. 19(1), pages 65-92, January.

    More about this item

    Keywords

    location quotient; coefficient of localization; decomposition; cluster;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:47988. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.