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A Note on Methods for Measuring Industrial Agglomeration

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  • Dan O'Donoghue
  • Bill Gleave
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    Abstract

    O'Donoghue D. and Gleave B. (2004) A note on methods for measuring industrial agglomeration, Reg. Studies 38, 419- 427. A range of quantitative techniques have been employed by researchers in economic geography and other social science disciplines for the purpose of measuring and spatially delimiting agglomerations of industrial activity. However, these techniques appear to have been applied with little consistency within the literature, particularly with regard to the use of arbitrary cut-off values for determining what level of industrial specialization defines an agglomeration. This paper proposes a new measure, the 'standardized location quotient', which recognizes agglomerations as being comprised of locations with statistically significant (rather then arbitrarily defined) location quotient values for the industry/activity under analysis. The use of the measure in delimiting spatial agglomerations within the UK business services sector, using recent employment and workplace data, is demonstrated.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 38 (2004)
    Issue (Month): 4 ()
    Pages: 419-427

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    Handle: RePEc:taf:regstd:v:38:y:2004:i:4:p:419-427

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    Related research

    Keywords: Industrial clusters; Industrial agglomeration; Statistical significance; Business services; Regroupements industriels; Agglomeration industrielle; Importance statistique; Services aux enterprises; Industriecluster; Industrieballung; Statistische Bedeutung; Geschaftliche Dienstleistungen; Clusters industriales; Aglomeracion industrial; Significacion estadistica; Servicios a empresas;

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    Cited by:
    1. Mª Jesus Santa Maria Beneyto & Jose Miguel Giner Perez & Antonio Fuster Olivares, 2005. "The Industry Location In Spain - New Methods For Measuring Industrial Agglomeration," ERSA conference papers ersa05p492, European Regional Science Association.
    2. Peter Mayerhofer, 2005. "Structural Preconditions of City Competitiveness. Some Empirical Results for European Cities," WIFO Working Papers 260, WIFO.
    3. Jenifer Ruiz-Valenzuela & Rosina Moreno-Serrano & Esther Vaya-Valcarce, 2006. "Concentration of the Economic Activity: Comparing Methodologies and Geographic Units," ERSA conference papers ersa06p197, European Regional Science Association.
    4. Ali, Merima & Peerlings, Jack, 2011. "Value Added of Cluster Membership for Micro Enterprises of the Handloom Sector in Ethiopia," World Development, Elsevier, vol. 39(3), pages 363-374, March.
    5. Pla-Barber, José & Puig, Francisco, 2009. "Is the influence of the industrial district on international activities being eroded by globalization?: Evidence from a traditional manufacturing industry," International Business Review, Elsevier, vol. 18(5), pages 435-445, October.
    6. Strotebeck, Falk, 2010. "The Location Quotient – Assembly and application of methodological enhancements," MPRA Paper 47988, University Library of Munich, Germany.
    7. Luciana Lazzeretti & Rafael Boix & Francesco Capone, 2008. "Do creative industries cluster? Mapping Creative Local Production Systems in Italy," Working Papers wpdea0805, Department of Applied Economics at Universitat Autonoma of Barcelona.
    8. Ali, Merima & Peerlings, Jack H.M., 2011. "Farm Households Entry and Exit Into and From Non-farm Enterprises in Rural Ethiopia: Does Clustering Play a Role?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114220, European Association of Agricultural Economists.
    9. 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.
    10. Michaela Fuchs, 2011. "How important are agglomeration effects for plant performance? Empirical evidence for Germany," ERSA conference papers ersa11p912, European Regional Science Association.
    11. 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.
    12. Michaela Fuchs & Udo Brixy, 2011. "How important are plant and regional characteristics for employment dynamics? Plant-level evidence for Germany," ERSA conference papers ersa10p243, European Regional Science Association.
    13. Blanca De Miguel Molina & José Luis Hervás Oliver & Rafael Boix Domenech & María De Miguel Molina, 2011. "The Importance of Creative Industry Agglomerations in Explaining the Wealth of European Regions," ERSA conference papers ersa11p472, European Regional Science Association.
    14. 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.
    15. Kevin P. Heanue, 2008. "Measuring Industrial Agglomeration in a Rural Industry: The Case of Irish Furniture Manufacturing," Working Papers 0830, Rural Economy and Development Programme,Teagasc.
    16. Ali, Merima & Peerlings, Jack & Zhang, Xiaobo, 2010. "Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia," IFPRI discussion papers 1045, International Food Policy Research Institute (IFPRI).

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