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Spatial Point Pattern Analysis and Industry Concentration

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  • Reinhold Kosfeld

    ()
    (University of Kassel)

  • Hans-Friedrich Eckey

    (University of Kassel)

  • Jørgen Lauridsen

    (University of Southern Denmark)

Abstract

Traditional measures of spatial industry concentration are restricted to given areal units. They do not make allowance for the fact that concentration may be differently pronounced at various geographical levels. Methods of spatial point pattern analysis allow to measure industry concentration at a continuum of spatial scales. While common distancebased methods are well applicable for sub-national study areas, they become inefficient in measuring concentration at various levels within industrial countries. This particularly applies in testing for conditional concentration where overall manufacturing is used as a reference population. Using Ripley’s K function approach to second-order analysis, we propose a subsample similarity test as a feasible testing approach for establishing conditional clustering or dispersion at different spatial scales. For measuring the extent of clustering and dispersion, we introduce a concentration index of the style of Besag’s (1977) L function. By contrast to Besag’s L function, the new index can be employed to measure deviations of observed from general spatial point patterns. The K function approach is illustratively applied to measuring and testing industry concentration in Germany.

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File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/16-2009_kosfeld.pdf
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Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 200916.

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Length: 23 pages
Date of creation: 2009
Date of revision:
Publication status: Forthcoming in
Handle: RePEc:mar:magkse:200916

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Keywords: Spatial concentration; clustering; dispersion; spatial point pattern analysis; K function;

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References

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  1. Frank Bickenbach & Eckhardt Bode, 2006. "Disproportionality Measures of Concentration, Specialization, and Polarization," Kiel Working Papers 1276, Kiel Institute for the World Economy.
  2. Suedekum, Jens, 2004. "Concentration and Specialisation Trends in Germany since Reunification," HWWA Discussion Papers 285, Hamburg Institute of International Economics (HWWA).
  3. 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.
  4. Björn Alecke, Gerhard Untiedt, 2007. "Clusterförderung und Wirtschaftspolitik - Heilsbringer oder Wolf im Schafspelz?," List Forum Chapter, in: List Forum Band 33, edition 1, volume 2, chapter 5, pages 89-105 List Gesellschaft e.V..
  5. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
  6. Ron Martin & Peter Sunley, 2002. "Deconstructing Clusters: Chaotic Concept or Policy Panacea," ESRC Centre for Business Research - Working Papers wp244, ESRC Centre for Business Research.
  7. Frank Neffke & Martin Svensson Henning & Ron Boschma & Karl-Johan Lundquist & Lars-Olof Olander, 2008. "Who Needs Agglomeration? Varying Agglomeration Externalities and the Industry Life Cycle," Papers in Evolutionary Economic Geography (PEEG) 0808, Utrecht University, Section of Economic Geography, revised Apr 2008.
  8. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
  9. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
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Cited by:
  1. Hans-Friedrich Eckey & Reinhold Kosfeld & Alexander Werner, 2012. "Bivariate K functions as instruments to analyze inter-industrial concentration processes," Jahrbuch für Regionalwissenschaft, Springer, vol. 32(2), pages 133-157, September.
  2. Tobias Scholl & Thomas Brenner & Martin Wendel, 2013. "Evolving localization patterns of company foundations Evidence from the German MST-industry," ERSA conference papers ersa13p85, European Regional Science Association.
  3. Tobias Scholl & Thomas Brenner, 2013. "Detecting Spatial Clustering Using a Firm-Level Index," Working Papers on Innovation and Space 2012-02, Philipps University Marburg, Department of Geography.
  4. 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).
  5. Tobias Scholl & Thomas Brenner, 2013. "Optimizing Distance-Based Methods for Big Data Analysis," Working Papers on Innovation and Space 2013-09, Philipps University Marburg, Department of Geography.
  6. Eric Marcon & Florence Puech, 2012. "A typology of distance-based measures of spatial concentration," Working Papers halshs-00679993, HAL.
  7. Udo Broll & Antonio Roldán-Ponce & Jack Wahl, 2013. "Regional investment under uncertain costs of location," The Annals of Regional Science, Springer, vol. 51(3), pages 645-657, December.

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