Testing for Clustering of Industries - Evidence from micro geographic data
AbstractWe present a new statistical method that describes the localization patterns of industries in a continuous space. The proposed method does not divide space into subunits whereby it is not affected by the Modifiable Areal Unit Problem (MAUP). Our method fulfils all five criteria for a spatial statistical test of localization proposed by Duranton and Overman (2005) and improves them with respect to the significance of its results. Additionally, our test allows inference to the localization of highly clustered firms. Furthermore, the algorithm is efficient in its computation, which eases the usage in research.
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Bibliographic InfoPaper provided by Philipps University Marburg, Department of Geography in its series Working Papers on Innovation and Space with number 2011-02.
Length: 23 pages
Date of creation: Jun 2011
Date of revision:
Spatial concenctration; localization; clusters; MAUP; distance-based measures;
Find related papers by JEL classification:
- C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
- 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-2011-07-02 (All new papers)
- NEP-CSE-2011-07-02 (Economics of Strategic Management)
- NEP-ECM-2011-07-02 (Econometrics)
- NEP-GEO-2011-07-02 (Economic Geography)
- NEP-SBM-2011-07-02 (Small Business Management)
- NEP-URE-2011-07-02 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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