A Divergence Statistic for Industrial Localization

Tomoya Mori, Koji Nishikimi () and Tony E. Smith ()
Additional contact information
Koji Nishikimi: Institute of Developing Economies, JETRO
Tony E. Smith: Department of Electrical and Systems Engineering, University of Pennsylvania

No 587, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: In this paper, we propose a statistical index of industrial localization based on Kullback-Leibler divergence. This index is particularly well suited to cases where industrial data is only available at the regional level. Unlike existing regional-level indices, our index can be employed to test the significance of industrial localization relative to a hypothesized reference distribution of probable locations across regions. In addition, one can test relative degrees of localization among industries. Finally, as with all Kullback-Leibler divergence indices, our index can be decomposed into components representing localization at various levels of spatial aggregation.

JEL-codes: C19 L60 R12 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2004-03
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Citations: View citations in EconPapers (5)

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Journal Article: A Divergence Statistic for Industrial Localization (2005)
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