Tomoya Mori (Institute of Economic Research, Kyoto University) Koji Nishikimi (Institute of Developing Economies. JETRO) Tony E. Smith (University of Pennsylvania)
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We propose a statistical index of industrial localization based on the Kullback-Leibler divergence. This index is particularly well suited to cases where industrial data are available only at the regional level. Unlike existing regional-level indices, our index can be employed to test the significance of industrial localization relative to a hypothesized reference distribution of probable locations across regions. In addition, one can test relative degrees of localization among industries. Finally, as with all Kullback-Leibler divergence indices, our index can be decomposed into components representing localization at various levels of spatial aggregation. Copyright (c) 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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Volume (Year): 87 (2005) Issue (Month): 4 (December) Pages: 635-651 Download reference. The following formats are available: HTML
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