Closing the Gap between Absolute and Relative Measures of Localization, Concentration or Specialization
AbstractThis paper solves one of the puzzles in the analysis of regional and industrial distributions of economic activity, the discrepancy between absolute and relative measures. It shows that the difference between an absolute and a relative Theil index of localization can be expressed in terms of absolute and relative concentration and specialization measures. This helps understand and explore why absolute and relative measures frequently evolve in opposite directions. The paper shows for the EU-15 and for UK manufacturing that this divergence originates mainly from the industrial dimension and is largely a statistical artifact inherited from the characteristics of industry classifications
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1660.
Length: 13 pages
Date of creation: Nov 2010
Date of revision:
Localization; Concentration; Specialization; Theil index;
Other versions of this item:
- Frank Bickenbach & Eckhardt Bode & Christiane Krieger-Boden, 2013. "Closing the gap between absolute and relative measures of localization, concentration or specialization," Papers in Regional Science, Wiley Blackwell, vol. 92(3), pages 465-479, 08.
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-27 (All new papers)
- NEP-GEO-2010-11-27 (Economic Geography)
- NEP-URE-2010-11-27 (Urban & Real Estate Economics)
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- Aleksandra Parteka, 2013.
"Trade Diversity And Stages Of Development - Evidence On Eu Countries,"
GUT FME Working Paper Series A
8, Faculty of Management and Economics, Gdansk University of Technology.
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Departmental Working Papers
2012-23, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Aleksandra Parteka & Massimo Tamberi, 2012. "Relative Product Diversification in the Course of Economic Development: Import-Export Analysis," DEGIT Conference Papers c017_056, DEGIT, Dynamics, Economic Growth, and International Trade.
- Aleksandra Parteka & Massimo Tamberi, 2013. "Product Diversification, Relative Specialisation And Economic Development: Import-Export Analysis," GUT FME Working Paper Series A 15, Faculty of Management and Economics, Gdansk University of Technology.
- HAEDO, Christian & MOUCHART, Michel, 2012. "A stochastic independence approach for different measures of concentration and specialization," CORE Discussion Papers 2012025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny).
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