Testing for Localization Using Micro-Geographic Data

Gilles Duranton and Henry Overman

The Review of Economic Studies, 2005, vol. 72, issue 4, 1077-1106

Abstract: To study the detailed location patterns of industries, and particularly the tendency for industries to cluster relative to overall manufacturing, we develop distance-based tests of localization. In contrast to previous studies, our approach allows us to assess the statistical significance of departures from randomness. In addition, we treat space as continuous instead of using an arbitrary collection of geographical units. This avoids problems relating to scale and borders. We apply these tests to an exhaustive U.K. data-set. For four-digit industries, we find that (i) 52% of them are localized at a 5% confidence level, (ii) localization mostly takes place at small scales below 50 km, (iii) the degree of localization is very skewed, and (iv) industries follow broad sectoral patterns with respect to localization. Depending on the industry, smaller establishments can be the main drivers of both localization and dispersion. Three-digit sectors show similar patterns of localization at small scales as well as a tendency to localize at medium scales. Copyright 2005, Wiley-Blackwell.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (467)

Downloads: (external link)
http://hdl.handle.net/10.1111/0034-6527.00362 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Testing for localization using micro-geographic data (2005)
Working Paper: Testing for Localisation Using Micro-Geographic Data (2003)
Working Paper: Testing for Localisation Using Micro-Geographic Data (2002)
Working Paper: Testing for Localization Using Micro-Geographic Data (2002)
Working Paper: Testing for localisation using micro-geographic data (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:72:y:2005:i:4:p:1077-1106

Access Statistics for this article

The Review of Economic Studies is currently edited by Thomas Chaney, Xavier d’Haultfoeuille, Andrea Galeotti, Bård Harstad, Nir Jaimovich, Katrine Loken, Elias Papaioannou, Vincent Sterk and Noam Yuchtman

More articles in The Review of Economic Studies from Review of Economic Studies Ltd
Bibliographic data for series maintained by Oxford University Press ().