REAT (version 1.3.1)

locq:

Description

Calculating the location quotient

Usage

locq(e_ij, e_j, e_i, e)

Arguments

e_ij

a single numeric value with the employment of industry \(i\) in region \(j\)

e_j

a single numeric value with the over-all employment in region \(j\)

e_i

a single numeric value with the over-all employment in industry \(i\)

e

a single numeric value with the over-all employment in all regions

Value

A single numeric value (\(LQ\))

Details

The location quotient is a simple measure for the concentration of an industry (\(i\)) in a region (\(j\)) and is also the mathematical basis for other related indicators in regional economics (e.g. gini.conc()). The function returns the value \(LQ\) which is equal to 1 if the concentration of the regarded industry is exactly the same as the over-all concentration (that means, it is proportionally represented in region \(j\)). If the value of \(LQ\) is smaller (bigger) than 1, the industry is underrepresented (overrepresented). The function checks the input values for errors (i.e. if employment in a region is bigger than over-all employment).

References

Farhauer, O./Kroell, A. (2013): “Standorttheorien: Regional- und Stadtoekonomik in Theorie und Praxis”. Wiesbaden : Springer. Nakamura, R./Morrison Paul, C. J. (2009): “Measuring agglomeration”. In: Capello, R./Nijkamp, P. (eds.): Handbook of Regional Growth and Development Theories. Cheltenham: Elgar. p. 305-328.

See Also

gini.conc, gini.spec

Examples

# Example from Farhauer/Kroell (2013):
locq (1714, 79006, 879213, 15593224)
# returns the location quotient (0.3847623)