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Dartboard tests for the location quotient

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  • Guimarães, Paulo
  • Figueiredo, Octávio
  • Woodward, Douglas

Abstract

In this paper we reinterpret the location quotient, the commonly employed measure of regional industrial agglomeration, as an estimator derived from Ellison and Glaeser [Ellison, G., and Glaeser, E., 1997. Geographic concentration in U.S. manufacturing industries: a dartboard approach. Journal of Political Economy 105 (5), 889-927.] dartboard framework. This approach provides a theoretical foundation on which to build statistical tests for the measure. With a simple application, we show that these tests provide valuable information about the accuracy of the location quotient. The tests are relatively easy to implement using regional employment and establishment data.

Suggested Citation

  • Guimarães, Paulo & Figueiredo, Octávio & Woodward, Douglas, 2009. "Dartboard tests for the location quotient," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 360-364, May.
    • Handle: RePEc:eee:regeco:v:39:y:2009:i:3:p:360-364
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    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. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
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    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. 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.
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    Cited by:

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    6. Register, D. Lane & Lambert, Dayton M. & English, Burton C. & Jensen, Kimberly L. & Menard, R. Jamey & Wilcox, Michael D., 2012. "Geographical Analysis of US Green Sector Industry Concentration," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119742, Southern Agricultural Economics Association.
    7. 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.
    8. Haedo, Christian & Mouchart, Michel, 2016. "Automatic biclustering of regions and sectors," LIDAM Discussion Papers ISBA 2016042, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    9. Joanna Kudelko & Katarzyna Zmija & Dariusz Zmija, 2022. "Regional smart specialisations in the light of dynamic changes in the employment structure: the case of a region in Poland," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(1), pages 133-171, March.
    10. Billings, Stephen B. & Johnson, Erik B., 2012. "The location quotient as an estimator of industrial concentration," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 642-647.
    11. Figueiredo, Octávio & Guimarães, Paulo & Woodward, Douglas, 2010. "Vertical disintegration in Marshallian industrial districts," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 73-78, January.
    12. Alistair Wilson & Mariagiovanna Baccara & Ayse Imrohoroglu & Leeat Yariv, 2009. "A Field Study on Matching with Network Externalities," Working Paper 486, Department of Economics, University of Pittsburgh, revised Sep 2011.
    13. Crawley, Andrew & Hallowell, Angela, 2020. "A thematic approach to regional economic development: Technical report for the state of Maine development strategy 2020-2029," MPRA Paper 102540, University Library of Munich, Germany.
    14. Chunji Zheng & Feng Deng & Chengyou Li, 2022. "Energy-Saving Effect of Regional Development Strategy in Western China," Sustainability, MDPI, vol. 14(9), pages 1-22, May.
    15. Massimo Riccaboni & Stefano Schiavo, 2012. "Stochastic Trade Networks," DEGIT Conference Papers c017_014, DEGIT, Dynamics, Economic Growth, and International Trade.
    16. John Rand & Finn Tarp & Neda Trifković & Helge Zille, 2019. "Industrial agglomeration in Myanmar," WIDER Working Paper Series wp-2019-3, World Institute for Development Economic Research (UNU-WIDER).
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    18. Jeroen Content & Nicola Cortinovis & Koen Frenken & Jacob Jordaan, 2022. "The roles of KIBS and R&D in the industrial diversification of regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 29-64, February.
    19. Carla Costa & Rui Baptista, 2023. "Knowledge inheritance and performance of spinouts," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 29-55, March.
    20. Register, D. Lane & Lambert, Dayton M. & English, Burton C. & Jensen, Kimberly L. & Menard, R. Jamey & Wilcox, Michael D., 2012. "Geographic Distribution of Renewable Energy Sector Industries: An Analysis Using Recent Developments in Industry Concentration Measurement," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124038, Agricultural and Applied Economics Association.
    21. Gabriel Lang & Eric Marcon & Florence Puech, 2020. "Distance-based measures of spatial concentration: introducing a relative density function," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 243-265, April.
    22. Carlianne Patrick & Mark Partridge, 2022. "Agglomeration Spillovers and Persistence: New Evidence from Large Plant Openings," Working Papers 22-21, Center for Economic Studies, U.S. Census Bureau.
    23. Madudova, Emilia, 2016. "Toward of the spatiality of the Information and Communication Technologies sector: Case study from the Slovak Republic," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 12(1), pages 1-13.
    24. Emilia Madudova, 2016. "Toward of the spatiality of the ICT sector: Case study from the Slovak Republic," Business and Economic Horizons (BEH), Prague Development Center, vol. 12(1), pages 29-41, April.

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    More about this item

    Keywords

    Location quotient Dartboard model Industrial location Agglomeration;

    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)
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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