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Spatial Point Pattern Analysis and Industry Concentration

Author

Listed:
  • 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.

Suggested Citation

  • Reinhold Kosfeld & Hans-Friedrich Eckey & Jørgen Lauridsen, 2009. "Spatial Point Pattern Analysis and Industry Concentration," MAGKS Papers on Economics 200916, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  • Handle: RePEc:mar:magkse:200916
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    File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/16-2009_kosfeld.pdf
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    References listed on IDEAS

    as
    1. Jens Suedekum, 2006. "Concentration and Specialization Trends in Germany since Re-unification," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 861-873.
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    3. Frank Bickenbach & Eckhardt Bode, 2008. "Disproportionality Measures of Concentration, Specialization, and Localization," International Regional Science Review, , vol. 31(4), pages 359-388, October.
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    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. 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.
    7. 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.
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    9. 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..
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    Citations

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    Cited by:

    1. 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.
    2. Tobias Scholl & Thomas Brenner & Martin Wendel, 2016. "Evolving localization patterns of company foundationsEvidence from the German MST-industry," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1067-1087, December.
    3. Tobias Scholl & Thomas Brenner & Martin Wendel, 2012. "Evolving localization patterns of company foundations - Evidence from the German MST-industry," Working Papers on Innovation and Space 2012-05, Philipps University Marburg, Department of Geography.
    4. Gibbons, Steve & Overman, Henry G. & Patacchini, Eleonora, 2015. "Spatial Methods," Handbook of Regional and Urban Economics, Elsevier.
    5. Reinhold Kosfeld & Mirko Titze, 2014. "Benchmark Value Added Chains and Regional Clusters in German R&D Intensive Industries," MAGKS Papers on Economics 201437, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Tobias Scholl & Thomas Brenner, 2015. "Optimizing distance-based methods for large data sets," Journal of Geographical Systems, Springer, vol. 17(4), pages 333-351, October.
    7. Udo Broll & Antonio Roldán-Ponce & Jack Wahl, 2013. "Regional investment under uncertain costs of location," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(3), pages 645-657, December.
    8. 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).
    9. Reinhold Kosfeld & Mirko Titze, 2014. "Benchmark Value Added Chains and Regional Clusters in German R&D Intensive Industries," ERSA conference papers ersa14p1396, European Regional Science Association.
    10. Jean Dubé & Cédric Brunelle, 2014. "Dots to dots: a general methodology to build local indicators using spatial micro-data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 245-272, August.
    11. Eric Marcon & Florence Puech, 2012. "A typology of distance-based measures of spatial concentration," Working Papers halshs-00679993, HAL.
    12. 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.
    13. 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.
    14. Hans-Friedrich Eckey & Reinhold Kosfeld & Alexander Werner, 2012. "Bivariate K functions as instruments to analyze inter-industrial concentration processes," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(2), pages 133-157, September.

    More about this item

    Keywords

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

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - 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)

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