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Title: Identifying the export component of industries that produce partly for local consumption

Citation Type: Journal Article

Publication Year: 2011

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Abstract: Identification of the export nature of an industry in a center within a regionhas proven difficult because of the complexities, dynamic nature and maturation ofregional economies. Location Theory and the work of Jan Tinbergen imply that someindustries (hybrid industries) in a center may produce both for local consumption andfor export within a region. We focus on hybrid industries in Metropolitan StatisticalAreas (MSAs) in the Census Midwest region.We present new statistical tests designedto identify the export component of three different types of hybrid industries. The firsttype of industry is present in virtually all MSAs, and appears to produce for export ina subset of thoseMSAs.We present a test to identify the subset of MSAs for which theindustry is hybrid. The second type of hybrid industry is absent in a number of MSAsand appears to produce for export in some or all the MSAs in which it is present.Our statistical technique seeks to identify the portion of employment in the industryin the region which produces for export production. Finally, we focus on high-orderbusiness services in the five largest MSAs in the Midwest region. While these industriestypically produce for local consumption they may produce for export, especiallyin large MSAs. We present a statistical test for identifying the export component ofthese industries in large MSAs. To varying degrees, we compare our tests with resultsobtained using location quotients.JEL Classification R11 R12

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Authors: Nichols, Donald; Mushinski, David

Periodical (Full): The Annals of Regional Science

Issue: 2

Volume: 46

Pages: 313-329

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

Countries: United States