Measuring industry co-location across county borders

Zheng Tian, Paul D. Gottlieb, Stephan J. Goetz

Research output: Contribution to journalArticle

Abstract

The location quotient (LQ) measures regional industry concentration with the advantages of easy calculation and interpretation. However, it is a weak method for identifying industry clusters that consist of related industries geographically concentrated in contiguous counties. This paper proposes a new spatial input–output location quotient (SI-LQ) accounting for both the co-location of related industries and the spatial spillover of concentration into neighbouring counties. A bootstrap method is used to determine the cut-off values of the new measure. The practical advantages of the SI-LQ over the traditional LQ include attenuation of the extreme values of the LQ in less populous and remote counties and the identification of large substantive clusters. The SI-LQ outperforms the LQ in a regression analysis of the effect of industry concentration on total employment growth.

Original languageEnglish (US)
JournalSpatial Economic Analysis
DOIs
StateAccepted/In press - Jan 1 2019

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Quotient
Industry
industry
bootstrapping
regression analysis
employment trend
county
border
measuring
Location quotient
Co-location
Bootstrap Method
Extreme Values
Regression Analysis
Attenuation
interpretation
Values
Industry concentration

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Economics, Econometrics and Finance(all)
  • Statistics, Probability and Uncertainty
  • Earth and Planetary Sciences (miscellaneous)

Cite this

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Measuring industry co-location across county borders. / Tian, Zheng; Gottlieb, Paul D.; Goetz, Stephan J.

In: Spatial Economic Analysis, 01.01.2019.

Research output: Contribution to journalArticle

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