location_quotient_avg {EconGeo}

Compute average location quotients of regions from regions - industries matrices

Description

This function computes the average location quotients of regions from (incidence) regions - industries matrices. This index is also referred to as the coefficient of specialization (Hoover and Giarratani, 1985).

Usage

location_quotient_avg(mat)

Arguments

mat

An incidence matrix with regions in rows and industries in columns

Value

A vector of average location quotients computed for each region from the regions - industries matrix. The average location quotient represents the degree of specialization of each region in different industries.

Author(s)

Pierre-Alexandre Balland [e-mail]

References

Hoover, E.M. and Giarratani, F. (1985) An Introduction to Regional Economics. 3rd edition. New York: Alfred A. Knopf

Boschma, R., Balland, P.A. and Kogler, D. (2015) Relatedness and Technological Change in Cities: The rise and fall of technological knowledge in U.S. metropolitan areas from 1981 to 2010, Industrial and Corporate Change 24 (1): 223-250

See Also

location_quotient, hachman

Examples

## generate a region - industry matrix
mat <- matrix(
  c(
    100, 0, 0, 0, 0,
    0, 15, 5, 70, 10,
    0, 20, 10, 20, 50,
    0, 25, 30, 5, 40,
    0, 40, 55, 5, 0
  ),
  ncol = 5, byrow = TRUE
)
rownames(mat) <- c("R1", "R2", "R3", "R4", "R5")
colnames(mat) <- c("I1", "I2", "I3", "I4", "I5")

## run the function
location_quotient_avg(mat)