EconGeo (version 2.0)

location_quotient_avg: 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)

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.

Arguments

mat

An incidence matrix with regions in rows and industries in columns

Author

Pierre-Alexandre Balland

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)