Closing the gap between absolute and relative measures of localization, concentration or specialization

Arbeitspapier

This paper solves one of the puzzles in the analysis of regional and industrial distributions of economic activity, the discrepancy between absolute and relative measures. It shows that the difference between an absolute and a relative Theil index of localization can be expressed in terms of absolute and relative concentration and specialization measures. This helps understand and explore why absolute and relative measures frequently evolve in opposite directions. The paper shows for the EU-15 and for UK manufacturing that this divergence originates mainly from the industrial dimension and is largely a statistical artifact inherited from the characteristics of industry classifications.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1660

Classification and Topics

• Classification: Wirtschaft ; Index Numbers and Aggregation; Leading indicators ; Size and Spatial Distributions of Regional Economic Activity
• Subject: Localization ; Concentration ; Specialization ; Theil index ; Regionale Konzentration ; Wirtschaftskonzentration ; Arbeitsteilung ; Disparitätsmaß ; Index ; Theorie ; EU-Staaten ; Großbritannien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bickenbach, Frank ; Bode, Eckhardt ; Krieger-Boden, Christiane
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/43120
• Last update: 10.03.2025, 11:44 AM CET