Location Quotient
The location quotient (LQ) is a simple descriptive index that measures how concentrated an industry is in a region relative to a larger reference area, usually the nation. It is the ratio of the industry's share of local employment (or output) to its share of national employment. An LQ above one means the region is more specialized in that industry than the nation as a whole; an LQ below one means it is under-represented.
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Sources
- Isard, W. (1960). Methods of Regional Analysis: An Introduction to Regional Science. Cambridge, MA: MIT Press. ISBN: 9780262090032
- Miller, R. E., & Blair, P. D. (2009). Input-Output Analysis: Foundations and Extensions (2nd ed.). Cambridge University Press. ISBN: 9780521739023
How to cite this page
ScholarGate. (2026, June 22). Location Quotient (Regional Specialization Index). ScholarGate. https://scholargate.app/en/economics/location-quotient
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