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Classifying industries into types of relative concentration

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  • Ludwig von Auer
  • Andranik Stepanyan
  • Mark Trede

Abstract

Existing measures of relative concentration rank industries according to their degree of concentration. However, two equally strongly concentrated industries can have completely different types of concentration. Therefore, the paper proposes a new statistical approach that classifies each industry into one of six different geographical patterns, five of which represent different types of concentration, ranging from urban concentration to strongly rural concentration. The statistical identification of each industry's geographical pattern is based on two Goodman–Kruskal rank correlation coefficients. The power of this new approach is illustrated by using German employment data on 613 different industries in 412 regions.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:jorssa:v:182:y:2019:i:3:p:1017-1037
    DOI: 10.1111/rssa.12441
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • 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)

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