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Measures of the Geographic Concentration of Industries: Improving Distance-Based Methods

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Eric Marcon (AgroParisTech - AgroParisTech, Ecofog - Ecologie des forêts de Guyane - CIRAD : UMR93 - CNRS : UMR2728 - INRA : UR0745 - Université des Antilles-Guyane - Ecole Nationale du Génie Rural des Eaux et des Forêts)
Florence Puech (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat)
Abstract

This study introduces two new measures of spatial concentration. The proposed M functions constitute an extension to Ripley's functions (Ripley, 1976, 1977). They allow the evaluation of the relative geographic concentration and co-location of industries in a non-homogeneous spatial framework. Some rigorous comparisons with similar recently developed tools prove the relevance of the M functions in the field of spatial economics.

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Paper provided by HAL in its series Working Papers with number halshs-00372617_v1.

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Date of creation: 01 Apr 2009
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Keywords: Geographic concentration ; Distance-based methods ; Ripley's K function ; M function;

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  1. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909 Elsevier. [Downloadable!] (restricted)
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  2. Giuseppe Arbia & Giuseppe Espa & Danny Quah, 2008. "A class of spatial econometric methods in the empirical analysis of clusters of firms in the space," Empirical Economics, Springer, vol. 34(1), pages 81-103, February. [Downloadable!] (restricted)
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  3. Anthony Briant & Pierre-Philippe Combes & Miren Lafourcade, 2008. "Dots to boxes: Do the size and shape of spatial units jeopardize economic geography estimations?," PSE Working Papers 2008-66, PSE (Ecole normale supérieure). [Downloadable!]
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  4. Gilles Duranton & Henry G. Overman, 2008. "Exploring The Detailed Location Patterns Of U.K. Manufacturing Industries Using Microgeographic Data," Journal of Regional Science, Blackwell Publishing, vol. 48(1), pages 213-243. [Downloadable!] (restricted)
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  5. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier. [Downloadable!] (restricted)
  6. Tomoya Mori & Koji Nishikimi & Tony E. Smith, 2005. "A Divergence Statistic for Industrial Localization," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 635-651, December. [Downloadable!] (restricted)
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  7. Duranton, Gilles & Henry G Overman, 2003. "Testing for Localisation Using Micro-Geographic Data," Royal Economic Society Annual Conference 2003 69, Royal Economic Society. [Downloadable!]
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