Portfolio matrix plot comparing two numeric vectors (here: specialization and growth)
locq.growth(e_ij1, e_ij2, e_i1, e_i2, industry.names = NULL,
y.axis = "r",
psize, psize.factor = 10, time.periods = NULL,
pmx = "Regional specialization", pmy = "Regional growth",
pmtitle = "Portfolio matrix", pcol = NULL, pcol.border = NULL,
leg = FALSE, leg.fsize = 1, leg.col = NULL,
leg.x = 0, leg.y = y_min*1.5,
bg.col = "gray95", bgrid = TRUE, bgrid.col = "white",
bgrid.size = 2, bgrid.type = "solid",
seg.x = 1, seg.y = 0)a numeric vector with \(i\) values containing the employment in \(i\) industries in region \(j\) at time 1
a numeric vector with \(i\) values containing the employment in \(i\) industries in region \(j\) at time 2
a numeric vector with \(i\) values containing the total employment in \(i\) industries at time 1
a numeric vector with \(i\) values containing the total employment in \(i\) industries at time 2
Industry names (e.g. from the relevant statistical classification of economic activities)
Declares which values shall be plotted on the Y axis: If y.axis = "r", the Y axis shows the regional growth. If y.axis = "n", the Y axis shows the national growth. To set both growths in ratio, choose y.axis = "rn" (regional vs. national growth)
Point size in the portfolio matrix plot (mostly the absolute values of employment in \(i\) industries in region \(j\) at time 2)
Enlargement factor for the points in the plot
No. of regarded time periods (for average growth rates)
Name of the X axis in the plot
Name of the Y axis in the plot
Plot title
Industry-specific point colors
Color of point border
Logical argument that indicates if a legend has to be added to the plot
If leg = TRUE: Font size in the plot legend
No. of columns in the plot legend
If leg = TRUE: X coordinate of the legend
If leg = TRUE: Y coordinate of the legend
Background color
Logical argument that indicates if a grid has to be added to the plot
If bgrid = TRUE: Color of the grid
If bgrid = TRUE: Size of the grid
If bgrid = TRUE: Type of the grid
X coordinate of segmentation of the plot
Y coordinate of segmentation of the plot
A portfolio matrix plot.
Invisible: a list containing the following items:
The data related to the plot
The localization quotients for each year
The growth values for each industry
The portfolio matrix is a graphic tool displaying the development of one variable compared to another variable. The plot shows the regarded variable on the \(x\) axis and a variable with which it is confronted on the \(y\) axis while the graph is divided in four quadrants. Originally, the portfolio matrix was developed by the Boston Consulting Group to analyze the performance of product lines in marketing, also known as the growth-share matrix. The quadrants show the performace of the regarded objects (stars, cash cows, question marks, dogs) (Henderson 1973). But the portfolio matrix can also be used to analyze/illustrate the world market integration of a region or a national economy by confronting e.g. the increase in world market share (\(x\) axis) and the world trade growth (\(y\) axis) (Baker et al. 2002). Another option is to analyze/illustrate the economic performance of a region (Howard 2007). E.g. it is possible to confront the growth of industries in a region with the all-over growth of these industries in the national economy.
This function is a special case of portfolio matrix, showing the regional specialization on the X axis instead of the regional growth (which can be plotted on the Y axis).
Baker, P./von Kirchbach, F./Mimouni, M./Pasteels, J.-M. (2002): “Analytical tools for enhancing the participation of developing countries in the Multilateral Trading System in the context of the Doha Development Agenda”. In: Aussenwirtschaft, 57, 3, p. 343-372.
Howard, D. (2007): “A regional economic performance matrix - an aid to regional economic policy development”. In: Journal of Economic and Social Policy, 11, 2, Art. 4.
Henderson, B. D. (1973): “The Experience Curve - Reviewed, IV. The Growth Share Matrix or The Product Portfolio”. The Boston Consulting Group (BCG).
# NOT RUN {
data(Goettingen)
# Loads employment data for Goettingen and Germany (2008-2017)
locq.growth(Goettingen$Goettingen2008[2:16], Goettingen$Goettingen2017[2:16],
Goettingen$BRD2008[2:16], Goettingen$BRD2017[2:16],
psize = Goettingen$Goettingen2017[2:16],
industry.names = Goettingen$WA_WZ2008[2:16], pcol.border = "grey",
leg = TRUE, leg.fsize = 0.4, leg.x = -0.2)
# }
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