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Title:Closing the gap between absolute and relative measures of localization, concentration or specialization PDF Logo
Authors:Bickenbach, Frank
Bode, Eckhardt
Krieger-Boden, Christiane
Issue Date:2010
Series/Report no.:Kiel working paper 1660
Abstract:This paper solves one of the puzzles in the analysis of regional and industrial distributions of economic activity, the discrepancy between absolute and relative measures. It shows that the difference between an absolute and a relative Theil index of localization can be expressed in terms of absolute and relative concentration and specialization measures. This helps understand and explore why absolute and relative measures frequently evolve in opposite directions. The paper shows for the EU-15 and for UK manufacturing that this divergence originates mainly from the industrial dimension and is largely a statistical artifact inherited from the characteristics of industry classifications.
Subjects:Localization
Concentration
Specialization
Theil index
JEL:C43
R12
Document Type:Working Paper
Appears in Collections:Kieler Arbeitspapiere, IfW
Publikationen von Forscherinnen und Forschern des IfW

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