Classifying Industries Into Types of Relative Concentration

Ludwig von Auer, Andranik Stepanyan and Mark Trede ()

No 5516, CQE Working Papers from Center for Quantitative Economics (CQE), University of Muenster

Abstract: When some industries are overrepresented in urban areas (urban concentration), some other industries must be overrepresented in rural areas (rural concentration). Existing measures of concentration do not distinguish between these different types of concentration. Instead, they rank industries according to their degree of concentration. However, knowing the concentration type is important, when investigating the forces of agglomeration that shape the geographical distribution of an industry. Therefore, the present paper proposes a new statistical approach that classifies each industry into one of seven different geographical patterns, five of which represent different types of concentration. The statistical identification of each industry’s geographical pattern is based on two Goodman-Kruskal rank correlation coefficients. The power of our approach is illustrated by German employment data on 613 different industries in 412 regions.

Keywords: Geographical Concentration; Archetypes; Confidence Region; Goodman-Kruskal Coefficient (search for similar items in EconPapers)
JEL-codes: R10 R12 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2016-09
New Economics Papers: this item is included in nep-geo and nep-ure
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Related works:
Journal Article: Classifying industries into types of relative concentration (2019)
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