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Measuring Agglomeration Using the Standardized Location Quotient with a Bootstrap Method

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  • Tian, Zheng

Abstract

Abstract. The location quotient is a widely used index to measure agglomeration. However, a problem concerning the usefulness of the location quotient is how to obtain an objective cut-off value to identify the existence of agglomeration for an industry in a region. This paper ex-tends the idea of O’Donoghue and Gleave (2004) and proposes a bootstrap method to deter-mine the cut-off value based on the standardized location quotient. The advantage of our method is that the bootstrap method does not rely on any assumption regarding the statistical distribution of the location quotient, which is a major limitation of O’Donoghue and Gleave’s (2004) approach. Then we apply the method to measure agglomeration of manufacturing in-dustries at the county level in the United States.

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  • Tian, Zheng, 2013. "Measuring Agglomeration Using the Standardized Location Quotient with a Bootstrap Method," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(2).
    • Handle: RePEc:ags:jrapmc:243958
    DOI: 10.22004/ag.econ.243958
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    2. Daniel F Meyer & Ferdinand Niyimbanira, 2021. "Formulation and application of a multi-variable location quotient index in the Mpumalanga Province, South Africa," Local Economy, London South Bank University, vol. 36(4), pages 273-286, June.
    3. Yang, Wen-Chi & Lee, Yuh-Ming & Hu, Jin-Li, 2016. "Urban sustainability assessment of Taiwan based on data envelopment analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 341-353.
    4. Milene Tessarin & Deyu Li & Sergio Petralia & Ron Boschma, 2023. "The future geography of industries and occupations," Papers in Evolutionary Economic Geography (PEEG) 2302, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2023.
    5. Reinhold Kosfeld & Timo Mitze, 2020. "The role of R&D-intensive clusters for regional competitiveness," MAGKS Papers on Economics 202001, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Industrial Diversification in Europe: The Differentiated Role of Relatedness," Economic Geography, Taylor & Francis Journals, vol. 94(5), pages 514-549, October.
    7. Greta Falavigna & Roberto Ippoliti, 2018. "Industrial spatial dynamics, financial health and bankruptcy: evidence from Italian manufacturing industry," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(4), pages 533-554, December.
    8. N. Cortinovis & D. Zhang & R. Boschma, 2024. "Regional diversification and intra-regional wage inequality in the Netherlands," Regional Studies, Taylor & Francis Journals, vol. 58(12), pages 2292-2306, December.
    9. Andrew Crawley & Todd M. Gabe & Mariya Pominova, 2021. "The Pitfalls of Using Location Quotients to Identify Clusters and Represent Industry Specialization in Small Regions," International Finance Discussion Papers 1329, Board of Governors of the Federal Reserve System (U.S.).
    10. Zoltán Elekes & Rikard Eriksson & Anna Baranowska-Rataj, 2023. "Regional diversification and labour market upgrading: Local access to skill-related high-income jobs helps workers escaping low-wage employment," CERS-IE WORKING PAPERS 2315, Institute of Economics, Centre for Economic and Regional Studies.
    11. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Resilience in the European Union: the effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 15-47.
    12. Nicola Cortinovis & Jing Xiao & Ron Boschma & Frank G van Oort, 2017. "Quality of government and social capital as drivers of regional diversification in Europe," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1179-1208.
    13. Hao, Yu & Guo, Yunxia & Li, Suixin & Luo, Shiyue & Jiang, Xueting & Shen, Zhiyang & Wu, Haitao, 2022. "Towards achieving the sustainable development goal of industry: How does industrial agglomeration affect air pollution?," Innovation and Green Development, Elsevier, vol. 1(1).
    14. Lee, Yong-Jin Alex & Jang, Seongsoo & Kim, Jinwon, 2020. "Tourism clusters and peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 83(C).
    15. Reinhold Kosfeld & Timo Mitze, 2023. "Research and development intensive clusters and regional competitiveness," Growth and Change, Wiley Blackwell, vol. 54(4), pages 885-911, December.
    16. Iglesias, Matias Nehuen, 2021. "Measuring size distortions of location quotients," International Economics, Elsevier, vol. 167(C), pages 189-205.
    17. Jing Chen, 2020. "The Impact of Cluster Diversity on Economic Performance in U.S. Metropolitan Statistical Areas," Economic Development Quarterly, , vol. 34(1), pages 46-63, February.

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