IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v50y2013i9p1854-1869.html
   My bibliography  Save this article

Making Location Quotients More Relevant as a Policy Aid in Regional Spatial Analysis

Author

Listed:
  • Andrew Crawley
  • Malcolm Beynon
  • Max Munday

Abstract

Location Quotients (LQs) remain an important tool for geographical analysis, particularly in terms of assessing industrial specialisation and clustering. LQs as decision aids are typically understood through the use of arbitrarily set cut-off values. However, LQs are rarely accompanied by an associated level of variance that can be connected with the estimated data used to calculate them. This paper reveals the importance of understanding this variance and shows how confidence intervals can be estimated for employment-based LQs. A systematic process is introduced, through which the arbitrariness of cut-off-value choice can be mitigated and borderline industry cases in terms of their LQ values and the considered cut-off value, identified. A case from a UK region is used to illustrate the issues covered in the paper.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:urbstu:v:50:y:2013:i:9:p:1854-1869
    DOI: 10.1177/0042098012466601
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098012466601
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0042098012466601?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. West, Guy R, 1986. "A Stochastic Analysis of an Input-Output Model," Econometrica, Econometric Society, vol. 54(2), pages 363-374, March.
    3. Rafael Boix & Vittorio Galletto, 2009. "Innovation and Industrial Districts: A First Approach to the Measurement and Determinants of the I-District Effect," Regional Studies, Taylor & Francis Journals, vol. 43(9), pages 1117-1133.
    4. Lisa De Propris, 2005. "Mapping local production systems in the UK: Methodology and application," Regional Studies, Taylor & Francis Journals, vol. 39(2), pages 197-211.
    5. Dan O'Donoghue & Bill Gleave, 2004. "A Note on Methods for Measuring Industrial Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 419-427.
    6. Shu-hen Chiang, 2009. "Location quotient and trade," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 399-414, June.
    7. Edward Feser & Edward Bergman, 2000. "National Industry Cluster Templates: A Framework for Applied Regional Cluster Analysis," Regional Studies, Taylor & Francis Journals, vol. 34(1), pages 1-19.
    8. Edward Feser & Andrew Isserman, 2009. "The Rural Role in National Value Chains," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 89-109.
    9. William A. Schaffer, 1999. "Regional Impact Models," Wholbk, Regional Research Institute, West Virginia University, number 24, November-.
    10. repec:rri:bkchap:24 is not listed on IDEAS
    11. Gordon F. Mulligan & Charles Schmidt, 2005. "A Note on Localization and Specialization," Growth and Change, Wiley Blackwell, vol. 36(4), pages 565-576, September.
    12. Nese Kumral & Çagaçan Deger, 2006. "An Industrial Cluster Study: As A Basis For The Aegean Region's Development Policy," Working Papers 0601, Ege University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Karyn Morrissey, 2016. "A location quotient approach to producing regional production multipliers for the Irish economy," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 491-506, August.
    4. 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.
    5. 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.).
    6. Yu, Haitao & Jiao, Junfeng & Houston, Eric & Peng, Zhong-Ren, 2018. "Evaluating the relationship between rail transit and industrial agglomeration: An observation from the Dallas-fort worth region, TX," Journal of Transport Geography, Elsevier, vol. 67(C), pages 33-52.
    7. Thomas Brenner, 2017. "Identification of Clusters - An Actor based Approach," Working Papers on Innovation and Space 2017-02, Philipps University Marburg, Department of Geography.
    8. Santos Júnior, Edvaldo Pereira & Silva, Magno Vamberto Batista da & Simioni, Flávio José & Rotella Junior, Paulo & Menezes, Rômulo Simões Cezar & Coelho Junior, Luiz Moreira, 2022. "Location and concentration of the forest bioelectricity supply in Brazil: A space-time analysis," Renewable Energy, Elsevier, vol. 199(C), pages 710-719.
    9. Andrew Crawley & Max Munday, 2017. "Priority sectors in city regions? Some issues from a study of the Cardiff Capital Region," Local Economy, London South Bank University, vol. 32(6), pages 576-589, September.
    10. tobias König & thomas Brenner, 2022. "Skill shortages and industry clusters – Empirical evidence from German establishment data," IAW Discussion Papers 140, Institut für Angewandte Wirtschaftsforschung (IAW).
    11. 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).
    12. Wu, Rongxin & Lin, Boqiang, 2021. "Does industrial agglomeration improve effective energy service: An empirical study of China’s iron and steel industry," Applied Energy, Elsevier, vol. 295(C).
    13. Lee, Yong-Jin Alex & Kim, Jinwon & Jang, Seongsoo & Ash, Kevin & Yang, Eunjung, 2021. "Tourism and economic resilience," Annals of Tourism Research, Elsevier, vol. 87(C).
    14. Masayoshi Oka, 2023. "Conceptual and Methodological Arguments against the Use of Location Quotient as an Area-Based Measure of Residential Segregation: A Measurement Perspective," Societies, MDPI, vol. 13(12), pages 1-13, December.
    15. Federico Benassi, & Massimiliano Crisci & Stefania M.L. Rimoldi, 2022. "Location quotient as a local index of residential segregation. Theoretical and applied aspects," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 76(1), pages 12-22, January-M.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.).
    2. Karyn Morrissey, 2016. "A location quotient approach to producing regional production multipliers for the Irish economy," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 491-506, August.
    3. Cristina Santos & Alexandre Almeida & Aurora A.C. Teixeira, 2008. "Searching for clusters in tourism. A quantitative methodological proposal," FEP Working Papers 293, Universidade do Porto, Faculdade de Economia do Porto.
    4. Seungil Yum, 2019. "The interaction between knowledge-intensive business services and urban economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 53-83, August.
    5. Lampiris, Georgios & Karelakis, Christos & Loizou, Efstratios, 2018. "Evaluation of the impacts of CAP policy measures on a local economy: The case of a Greek region," Land Use Policy, Elsevier, vol. 77(C), pages 745-751.
    6. Stewart, Lance A. & Lambert, Dayton M. & Wilcox, Michael D. & English, Burton C., 2009. "Tennessee Agriculture and Forestry Industry Clusters and Economic Performance, 2001-2006," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), pages 1-24, April.
    7. Maude Toussaint-Comeau & Robin Newberger & Darline Augustine, 2016. "Inclusive Cluster-Based Development Strategies for Inner Cities," Economic Development Quarterly, , vol. 30(2), pages 171-184, May.
    8. Domenica Panzera & Alfredo Cartone & Paolo Postiglione, 2022. "New evidence on measuring the geographical concentration of economic activities," Papers in Regional Science, Wiley Blackwell, vol. 101(1), pages 59-79, February.
    9. 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.
    10. Rafael Boix & Joan Trullén, 2009. "Industrial Districts, Innovation and I-district Effect: Territory or Industrial Specialization?," European Planning Studies, Taylor & Francis Journals, vol. 18(10), pages 1707-1729, February.
    11. Adem Sakarya, 2023. "Clustering potential of organized industrial zones in Türkiye," Asia-Pacific Journal of Regional Science, Springer, vol. 7(1), pages 255-276, March.
    12. Chávez Juan Carlos & Katia García Loredo, 2015. "Identification of Regional Clusters in Mexican Manufacturing Industry," Working Papers 2015-19, Banco de México.
    13. 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.
    14. Thomas Brenner, 2017. "Identification of Clusters - An Actor based Approach," Working Papers on Innovation and Space 2017-02, Philipps University Marburg, Department of Geography.
    15. Neil Reid & Bruce W. Smith & Michael C. Carroll, 2008. "Cluster Regions," Economic Development Quarterly, , vol. 22(4), pages 345-352, November.
    16. Sowjanya Dhulipala & Gopal R. Patil, 2021. "Identification of freight generating industry complexes: A descriptive spatial analysis," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2680-2712, December.
    17. 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.
    18. Reades, Jonathan & Smith, Duncan, 2014. "Mapping the ‘space of flows’: the geography of global business telecommunications and employment specialization in the London mega-city-region," LSE Research Online Documents on Economics 55812, London School of Economics and Political Science, LSE Library.
    19. Davenport, Sally, 2005. "Exploring the role of proximity in SME knowledge-acquisition," Research Policy, Elsevier, vol. 34(5), pages 683-701, June.
    20. Jiayuan Zhou & Yunxia Li & Bo Li, 2022. "Restructure or Misallocation? Enterprises’ Carbon Emission Intensity under Market Integration," Sustainability, MDPI, vol. 14(24), pages 1-18, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:50:y:2013:i:9:p:1854-1869. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.