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Accounting for Neighboring Effects in Measures of Spatial Concentration

Author

Listed:
  • Paulo Guimarães

    (University of South Carolina and CEMPRE)

  • Octávio Figueiredo

    (CEMPRE and Faculdade de Economia, Universidade do Porto)

  • Douglas Woodward

    (University of South Carolina)

Abstract

A common problem with spatial economic concentration measures (e.g. Gini, Herfindhal, entropy and Ellison-Glaeser indices) is accounting for the position of regions in space. While they purport to measure spatial clustering, these statistics are confined to calculations within individual areal units. They are insensitive to the proximity of regions - to neighboring effects. Clearly, economic clusters may cross the boundaries of the regions. Yet with current measures, any industrial agglomeration that traverses boundaries will be chopped into two or more pieces. Activity in adjacent spatial units is treated in exactly the same way as activity in far-flung, non-adjacent areas. This paper shows how some popular measures of spatial concentration relying on areal data can be modified to account for neighboring effects and spatial autocorrelation. With a U.S. application, we also show that the new instruments we propose are useful and easy to implement.

Suggested Citation

  • Paulo Guimarães & Octávio Figueiredo & Douglas Woodward, 2009. "Accounting for Neighboring Effects in Measures of Spatial Concentration," FEP Working Papers 353, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:353
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    Cited by:

    1. Elena Lasarte & Miguel Angel Marquez Paniagua, 2014. "Decomposition of Regional Income Inequality and Neighborhood Component: A Spatial Theil Index," Working Papers. Serie EC 2014-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. Annie Royer & Patrick Mundler & Julie Ruiz, 2023. "L’évolution du secteur bioalimentaire sur les territoires du Québec. Identification des principales dynamiques et facteurs explicatifs," CIRANO Project Reports 2023rp-14, CIRANO.
    3. Nicholas Crafts & Alexander Klein, 2019. "The Rise and Fall of US Manufacturing: Re-Examination of Long-Run Spatial Trends," Studies in Economics 1910, School of Economics, University of Kent.
    4. Mauro Ferrante & Giovanni Luca Lo Magno & Stefano De Cantis & Geoffrey J.D. Hewings, 2020. "Measuring spatial concentration: A transportation problem approach," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 663-682, June.
    5. Crafts, Nicholas & Alexander Klein, Alexander, 2017. "A Long-Run Perspective on the Spatial Concentration of Manufacturing Industries in the United States," CAGE Online Working Paper Series 339, Competitive Advantage in the Global Economy (CAGE).
    6. Youwei Tan & Zhihui Gu & Yu Chen & Jiayun Li, 2022. "Industry Linkage and Spatial Co-Evolution Characteristics of Industrial Clusters Based on Natural Semantics—Taking the Electronic Information Industry Cluster in the Pearl River Delta as an Example," Sustainability, MDPI, vol. 14(21), pages 1-14, October.
    7. Miguel A. Márquez & Elena Lasarte & Marcelo Lufin, 2019. "The Role of Neighborhood in the Analysis of Spatial Economic Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 245-273, January.
    8. Behrens, Kristian & Bougna, Théophile, 2015. "An anatomy of the geographical concentration of Canadian manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 47-69.
    9. Triboulet, Pierre & Peres, Stephanie, 2015. "La répartition spatiale des industries agroalimentaires dans le secteur coopératif français," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 346(March-Apr).
    10. Domenica Panzera & Alfredo Cartone & Paolo Postiglione, 2022. "New evidence on measuring the geographical concentration of economic activities," Papers in Regional Science, Wiley Blackwell, vol. 101(1), pages 59-79, February.
    11. Shuju Hu & Wei Song & Chenggu Li & Charlie H. Zhang, 2019. "The Evolution of Industrial Agglomerations and Specialization in the Yangtze River Delta from 1990–2018: An Analysis Based on Firm-Level Big Data," Sustainability, MDPI, vol. 11(20), pages 1-21, October.
    12. Eric Marcon & Florence Puech, 2012. "A typology of distance-based measures of spatial concentration," Working Papers halshs-00679993, HAL.
    13. Klein, Alexander, 2023. "From the Manufacturing Belt to the Rust Belt. Spatial Inequalities in the United States: An Interdisciplinary Literature Review," CAGE Online Working Paper Series 657, Competitive Advantage in the Global Economy (CAGE).
    14. Piyali Majumder & Aparna Sawhney, 2020. "Manufacturing agglomeration and export dynamics across Indian states," Indian Economic Review, Springer, vol. 55(1), pages 3-26, June.
    15. Marcon, Eric & Puech, Florence, 2017. "A typology of distance-based measures of spatial concentration," Regional Science and Urban Economics, Elsevier, vol. 62(C), pages 56-67.
    16. Sugam Agarwal & Smruti Ranjan Behera, 2022. "Geographical concentration of knowledge and technology-intensive industries in India: empirical evidence from establishment-level analysis," Indian Economic Review, Springer, vol. 57(2), pages 513-552, December.
    17. Marta R. Casanova & Vicente Orts & José M. Albert, 2017. "Sectoral scope and colocalisation of Spanish manufacturing industries," Journal of Geographical Systems, Springer, vol. 19(1), pages 65-92, January.
    18. Register, D. Lane & Lambert, Dayton M. & English, Burton C. & Jensen, Kimberly L. & Menard, R. Jamey & Wilcox, Michael D., 2012. "Geographic Distribution of Renewable Energy Sector Industries: An Analysis Using Recent Developments in Industry Concentration Measurement," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124038, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Measures of Agglomeration; Spatial Concentration;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other

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