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A nonparametric test for industrial specialization

Author

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  • Stephen B. Billings

    () (University of North Carolina-Charlotte)

  • Erik B. Johnson

    () (Quinnipiac University)

Abstract

We introduce a nonparametric microdata based test for industrial specialization and apply it to a single urban area. Our test employs establishment densities for specific industries, a population counterfactual, and a new correction for multiple hypothesis testing to determine the statistical significance of specialization across both places and industries. Results highlight patterns of specialization which are extremely varied, with downtown places specializing in a number of service sector industries, while more suburban places specialize in both manufacturing and service industries. Business service industries are subject to more specialization than non-business service industries while the manufacturing sector contains the lowest representation of industries with specialized places. Finally, we compare the results of our test for specialization with recent tests of localization and show how these two classes of measures highlight the presence of both industry as well as place specific agglomerative forces.

Suggested Citation

  • Stephen B. Billings & Erik B. Johnson, 2010. "A nonparametric test for industrial specialization," Working Papers 2010/40, Institut d'Economia de Barcelona (IEB).
  • Handle: RePEc:ieb:wpaper:2010/10/doc2010-40
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    References listed on IDEAS

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    Cited by:

    1. Theodore Tsekeris & Klimis Vogiatzoglou, 2014. "Public infrastructure investments and regional specialization: empirical evidence from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 265-289, August.
    2. Zhou, Tingyu & Clapp, John M., 2015. "The location of new anchor stores within metropolitan areas," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 87-107.

    More about this item

    Keywords

    Industrial specialization;

    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)

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