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A Note on Localization and Specialization

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  • GORDON F. MULLIGAN
  • CHARLES SCHMIDT

Abstract

ABSTRACT Analysts and policy makers frequently measure industrial localization and regional specialization. However, they rarely examine the nation's full array of industries or regions. So local indices, appropriate for specific industries or selected regions, are typically estimated. But in some instances global indices would be preferable in order to assess the wider features of the entire space‐economy. This article constructs global indices from the local indices already used in assessing localization and specialization. Global localization and global specialization are shown to be identical when all local indices use the dissimilarity logic. Two‐digit standard industry codes manufacturing data, taken from the U.S. during 1958–1995, are used to illustrate the results. The values of these global coefficients, like their local constituents, are shown to vary with geographic scale. The discussion addresses spatial distributions (evenness) but not geographic arrangements (clustering).

Suggested Citation

  • Gordon F. Mulligan & Charles Schmidt, 2005. "A Note on Localization and Specialization," Growth and Change, Wiley Blackwell, vol. 36(4), pages 565-576, September.
    • Handle: RePEc:bla:growch:v:36:y:2005:i:4:p:565-576
    DOI: 10.1111/j.1468-2257.2005.00295.x
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    Cited by:

    1. Run Yu & Junning Cai & PingSun Leung, 2009. "The normalized revealed comparative advantage index," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 267-282, March.
    2. Michael Carroll & Neil Reid & Bruce Smith, 2008. "Location quotients versus spatial autocorrelation in identifying potential cluster regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 449-463, June.
    3. Valerien O. Pede & Raymond J. G. M. Florax & Henri L. F. de Groot & Gustavo Barboza, 2021. "Technological leadership and sectorial employment growth: A spatial econometric analysis for U.S. counties," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(1), February.
    4. Eleonora CUTRINI, 2006. "The Balassa Index Meets the Dissimilarity Theil Index: a Decomposition Methodology for Location Studies," Working Papers 274, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    5. 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.
    6. Gómez-Zaldívar, Manuel & Garcia-Barragan, Fernando, 2022. "Trade Integration and Intra-national Business Cycle Synchronization: Evidence from Mexico’s States from 1980 to 2019," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 216-234.
    7. Charis Vlados & Dimos Chatzinikolaou & Fotios Katimertzopoulos & Theodore Koutroukis, 2019. "Regional underdevelopment and less developed business ecosystems: The case of Eastern Macedonia and Thrace," Bulletin of Applied Economics, Risk Market Journals, vol. 6(2), pages 31-44.
    8. Gordon F. Mulligan, 2023. "Economic vulnerability in US metropolitan areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(1), pages 29-53, February.
    9. Frank Bickenbach & Eckhardt Bode, 2008. "Disproportionality Measures of Concentration, Specialization, and Localization," International Regional Science Review, , vol. 31(4), pages 359-388, October.
    10. Federico Pablo-Martí & Josep-Maria Arauzo-Carod, 2020. "Spatial distribution of economic activities: a network approach," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 15(2), pages 441-470, April.
    11. HAEDO, Christian & MOUCHART, Michel, 2012. "A stochastic independence approach for different measures of concentration and specialization," LIDAM Discussion Papers CORE 2012025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. Gómez-Zaldívar, Manuel & Mosqueda, Marco T. & Duran, Jazmin A., 2017. "Localization of manufacturing industries and specialization in Mexican states: 1993–2013," MPRA Paper 76510, University Library of Munich, Germany.
    13. Andrew Crawley & Malcolm Beynon & Max Munday, 2013. "Making Location Quotients More Relevant as a Policy Aid in Regional Spatial Analysis," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1854-1869, July.

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