Concentration of the Economic Activity: Comparing Methodologies and Geographic Units
Despite the important role of the service sector in the economic activity, the majority of the studies, both at international and at the Spanish level, have focused their attention in determining the degree of concentration of the manufacture sector. The main purpose in this article is to analyze the concentration and the location pattern both of the manufacturing and the service sectors in Catalonia using different methodologies proposed in the economic literature, such as the Ellison&Glaeser index (1997) or the methodology used by Oâ€™Donoghue and Gleave (2004), among others. The calculation of the different indices using the municipalities of Catalonia as the geographic unit of the analysis allows us to make a comparison of the results between indices, and also to compare the location pattern and the degree of concentration of the manufacturing and service sectors. Moreover, the results that we obtain for Catalonia are compared with those obtained for other economies (United States, United Kingdom, France, Sweden, etc.). In a second step, we re-calculate these indices using as the geographic unit the local labour systems of Catalonia instead of the municipalities. The election of these two kind of geographic units is motivated thanks to the ongoing debate about what is the ideal geographic unit when analyzing the concentration of economic activity (Duranton and Overman (2006, forthcoming) and Marcon and Puech (2003), at the international level and Viladecans (2004), at the Spanish level). Using local labour systems will overcome the problem of working with geographic units based on administrative borders, like municipalities, that are not based in real economic areas. The calculation of these indices for the two kind of geographic units allows us to compare the results for the two areas. Once we have calculated these indices, we use the techniques of the Exploratory Spatial Data Analysis in order to study the geographic distribution of the concentration of the economic activity. Finally, in order to perform a more in-depth analysis of the relationships among different sectors, we use the Porter (2003) methodology to define clusters of activity.
|Date of creation:||Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
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.:
- Martin Hallet, 2000. "Regional specialisation and concentration in the EU," European Economy - Economic Papers 2008 - 2015 141, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- Mary Amiti, 1997.
"Specialisation Patterns in Europe,"
CEP Discussion Papers
dp0363, Centre for Economic Performance, LSE.
- Mary Amiti, 1999. "Specialization patterns in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(4), pages 573-593, December.
- Pontus Braunerhjelm & Benny Borgman, 2004. "Geographical Concentration, Entrepreneurship and Regional Growth: Evidence from Regional Data in Sweden, 1975-99," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 929-947.
- Gilles Duranton & Henry G. Overman, 2005.
"Testing for localization using micro-geographic data,"
LSE Research Online Documents on Economics
581, London School of Economics and Political Science, LSE Library.
- Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 1077-1106.
- Duranton, Gilles & Overman, Henry G, 2002. "Testing for Localization Using Micro-Geographic Data," CEPR Discussion Papers 3379, C.E.P.R. Discussion Papers.
- Gilles Duranton & Henry G. Overman, 2002. "Testing for localisation using micro-geographic data," LSE Research Online Documents on Economics 20071, London School of Economics and Political Science, LSE Library.
- Gilles Duranton & Henry Overman, 2002. "Testing for Localisation Using Micro-Geographic Data," CEP Discussion Papers dp0540, Centre for Economic Performance, LSE.
- Duranton, Gilles & Henry G Overman, 2003. "Testing for Localisation Using Micro-Geographic Data," Royal Economic Society Annual Conference 2003 69, Royal Economic Society.
- Krugman, Paul & Venables, Anthony J, 1994.
"Globalization and the Inequality of Nations,"
CEPR Discussion Papers
1015, C.E.P.R. Discussion Papers.
- Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," NBER Working Papers 5098, National Bureau of Economic Research, Inc.
- Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series 430, Research Institute of Industrial Economics.
- repec:hhs:iuiwop:430 is not listed on IDEAS
- Mª Jesus Santa Maria Beneyto & Jose Miguel Giner Perez & Antonio Fuster Olivares, 2005. "The Industry Location In Spain - New Methods For Measuring Industrial Agglomeration," ERSA conference papers ersa05p492, European Regional Science Association.
- Anthony J. Venables, 1993.
"Equilibrium Locations of Vertically Linked Industries,"
CEP Discussion Papers
dp0137, Centre for Economic Performance, LSE.
- Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
- Venables, Anthony J, 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
- Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
- Ugo Fratesi, 2004. "Measuring and Explaining Localisation: Evidence from two British Sectors," Urban/Regional 0407003, EconWPA.
- Eric Marcon & Florence Puech, 2003. "Evaluating the geographic concentration of industries using distance-based methods," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 409-428, October.
- Krugman, Paul & Venables, Anthony J., 1996.
"Integration, specialization, and adjustment,"
European Economic Review,
Elsevier, vol. 40(3-5), pages 959-967, April.
- Dan O'Donoghue & Bill Gleave, 2004. "A Note on Methods for Measuring Industrial Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 419-427.
- Paulo Guimarães & Octávio Figueiredo & Douglas Woodward, 2004. "Location Modelling and the Localization of Portuguese Manufacturing Industries," ERSA conference papers ersa04p28, European Regional Science Association.
- Daniel A. Tirado & Elisenda Paluzie & Jordi Pons, 2002. "Economic integration and industrial location: the case of Spain before World War I," Journal of Economic Geography, Oxford University Press, vol. 2(3), pages 343-363, July.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p197. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.