A DIVERGENCE STATISITIC FOR INDUSTRIAL LOCALIZATION

A DIVERGENCE STATISITIC FOR INDUSTRIAL LOCALIZATION

We propose a statistical index of industrial localization based on the Kullback-Leibler divergence. This index is particularly well suited to cases where industrial data are available only at the regional level. Unlike existing regional-level indices, our index can be employed to test the significan...

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Veröffentlicht in:The review of economics and statistics 2005-11, Vol.87 (4), p.635
Hauptverfasser: Mori, Tomoya, Nishikimi, Koji, Smith, Tony E
Format: Artikel
Sprache:eng
Schlagworte:
Economic models
Indexes
Industrial development
Localization
Location analysis
Statistical analysis
Studies
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Zusammenfassung:We propose a statistical index of industrial localization based on the Kullback-Leibler divergence. This index is particularly well suited to cases where industrial data are available only at the regional level. Unlike existing regional-level indices, our index can be employed to test the significance of industrial localization relative to a hypothesized reference distribution of probable localization among industries. Finally, as with all Kullback-Leibler divergence indices, our index can be decomposed into component representing localization at various levels of spatial aggregation. [PUBLICATION ABSTRACT]
ISSN:0034-6535
1530-9142