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Measuring and Explaining Localisation: Evidence from two British Sectors

Author

Listed:
  • Ugo Fratesi

    (Universitò Bocconi)

Abstract
The degree of localisation of manufacturing, defined as the excess geographic concentration remaining after correcting for both sectorial concentration and the agglomeration of overall economic activity, has recently gained new techniques of measurement. These techniques are illustrated and theoretically discussed. The paper then investigates the sectorial scale of localisation, using evidence from two British sectors, SIC 244 (pharmaceutical) and 334 (optical and photographic), and respective sub-sectors. Applying the measures, it is evidenced that the individual sub-sectors are very differently localized both in extent and in location, even within the same sector. In addition to this, with survey data the paper shows that localisation is due to different economic explanations in different sub-sectors. This is a proof that the economic factors behind localisation are in this case at 5-digit level, making economically not meaningful the measurement of localisation at a different scale. The study implies that identifying localisation remains a delicate process, since the right sectorial scale has to be detected case by case, the use of more than one technique usually gives additional insights and, finally, the survey confirms that, in field studies, a mix of diferent theoretical models is generally needed to explain the observed patterns.

Suggested Citation

  • Ugo Fratesi, 2004. "Measuring and Explaining Localisation: Evidence from two British Sectors," Urban/Regional 0407003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpur:0407003
    Note: Type of Document - pdf; pages: 52
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    References listed on IDEAS

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    Cited by:

    1. Jenifer Ruiz-Valenzuela & Rosina Moreno-Serrano & Esther Vaya-Valcarce, 2006. "Concentration of the Economic Activity: Comparing Methodologies and Geographic Units," ERSA conference papers ersa06p197, European Regional Science Association.
    2. S. Usai & Frederick Guy & A. Tidu, 2022. "Measuring spatial dispersion: an experimental test on the M-index," Working Paper CRENoS 202206, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other

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