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Professor Robert Wilson Political Economy II: Economics of Urban and Regional Policy Location Quotient

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Professor Robert Wilson

Political Economy II: Economics of Urban and Regional Policy


Location Quotient
Tables prepared by Jeffery Yorg, M.P.Aff.

BASE DATA
St. Louis MSA United States
Sector 1970 1990 1970 1990
Construction 44,796 61,350 5,020,504 7,214,763
Manufacturing 258,869 219,038 20,848,070 20,462,078
Transportation 42,086 95,408 5,356,549 8,205,062
Wholesale Trade 48,377 56,546 3,199,365 5,071,026
Retail Trade 141,927 199,098 12,838,562 19,485,666
Business Services 25,836 55,909 2,535,200 5,577,462
FIRE 46,149 84,486 3,935,351 7,984,870
Personal Services 37,950 32,360 3,734,658 3,668,696
Public Administration 50,329 47,133 4,338,620 5,538,077

Total 696,319 851,328 61,806,879 83,207,700

LOCATION QUOTIENT
A. Shares
Matrix=employment by sector in region/total employment in region
St. Louis MSA United States
Sector 1970 1990 1970 1990
Construction 6.4% 7.2% 8.1% 8.7%
Manufacturing 37.2% 25.7% 33.7% 24.6%
Transportation 6.0% 11.2% 8.7% 9.9%
Wholesale Trade 6.9% 6.6% 5.2% 6.1%
Retail Trade 20.4% 23.4% 20.8% 23.4%
Business Services 3.7% 6.6% 4.1% 6.7%
FIRE 6.6% 9.9% 6.4% 9.6%
Personal Services 5.5% 3.8% 6.0% 4.4%
Public Administration 7.2% 5.5% 7.0% 6.7%

Region's Total 100.0% 100.0% 100.0% 100.0%

B. Location Quotient
Matrix=Percentage by sector in region/United States Percentage for that Industry

St. Louis MSA


Sector 1970 1990
Construction 0.79 0.83
Manufacturing 1.10 1.05
Transportation 0.70 1.14
Wholesale Trade 1.34 1.09
Retail Trade 0.98 1.00
Business Services 0.90 0.98
FIRE 1.04 1.03
Personal Services 0.90 0.86
Public Administration 1.03 0.83

LQ>1.0→Relative Specialization in Sector/Region


LQ<1.0→Production 'deficit' in Sector/Region
LQ=1.0→Average Production in Sector/Region
LOCATION QUOTIENT
A. Shares
Matrix=employment by sector in region/total employment in region
St. Louis MSA United States
Sector 1970 1990 1970 1990
Constructio 6.4% 7.2% 8.1% 8.7%
Manufacturi 37.2% 25.7% 33.7% 24.6%
Transportat 6.0% 11.2% 8.7% 9.9%
Wholesale 6.9% 6.6% 5.2% 6.1%
Retail Trad 20.4% 23.4% 20.8% 23.4%
Business Se 3.7% 6.6% 4.1% 6.7%
FIRE 6.6% 9.9% 6.4% 9.6%
Personal Se 5.5% 3.8% 6.0% 4.4%
Public Admi 7.2% 5.5% 7.0% 6.7%

Region's Total
Professor Robert Wilson
Political Economy II: Economics of Urban and Regional Policy
Shift-Share Analysis
Tables prepared by Jeffery Yorg, M.P.Aff.

EMPLOYMENT BY SECTOR-Local and National Employment

St. Louis MSA United States


Sector 1970 1990 1970 1990
Construction 44,796 61,350 5,020,504 7,214,763
Manufacturing 258,869 219,038 20,848,070 20,462,078
Transportation 42,086 95,408 5,356,549 8,205,062
Wholesale Trade 48,377 56,546 3,199,365 5,071,026
Retail Trade 141,927 199,098 12,838,562 19,485,666
Business Services 25,836 55,909 2,535,200 5,577,462
FIRE 46,149 84,486 3,935,351 7,984,870
Personal Services 37,950 32,360 3,734,658 3,668,696
Public Administration 50,329 47,133 4,338,620 5,538,077
Total 696,319 851,328 61,806,879 83,207,700

TOTAL EMPLOYMENT IN 1990/TOTAL EMPLOYMENT IN 1970

Employment
Sector Change 1990-1970 St. Louis MSA United States
Construction 16,554 1.37 1.44
Manufacturing -39,831 0.85 0.98
Transportation 53,322 2.27 1.53
Wholesale Trade 8,169 1.17 1.59
Retail Trade 57,171 1.40 1.52
Business Services 30,073 2.16 2.20
FIRE 38,337 1.83 2.03
Personal Services -5,590 0.85 0.98
Public Administration -3,196 0.94 1.28
Total Employment 155,009 1.22 1.35

SHIFT-SHARE ANALYSIS-St. Louis MSA compared to the United States

Competitive
Sector National Share1 Industrial Mix2 Position3
Construction 15,511 4,068 -3,025
Manufacturing 89,634 -94,427 -35,038
Transportation 14,572 7,808 30,941
Wholesale Trade 16,751 11,550 -20,132
Retail Trade 49,143 24,339 -16,311
Business Services 8,946 22,058 -930
FIRE 15,979 31,509 -9,151
Personal Services 13,140 -13,811 -4,920
Public Administration 17,427 -3,513 -17,110
Total Change 241,103 -10,418 -75,675
1
MSA1970*(national employment change %-1)
MSA1970*(national employment by sector change %-national employment change %)
2

MSA1970*(MSA employment sector change %-national employment sector change %)


3
City of Veracruz Mexico
Sectors 1995 2005 1995 2005
Agriculture 0.7 1274.336 0.7 1750.581 7388.4 5898.1
Mining 1.5 2730.72 1.7 4251.411 131 193.5
Manufacture 12.05 21936.784 9.5 23757.885 5622.1 6910.6
Construction 6.02 10959.2896 6.8 17005.644 1698.3 3181.1
Commerce 24.44 44492.5312 24.2 60520.086 7537.2 9332.8
Services 41.9 76278.112 43.1 107785.773 1351.45 1742.2
Communicatio 8.77 15965.6096 9 22507.47 1409.8 1846.5
Government 4.52 8228.5696 4.9 12254.067 1570.7 1916.9
Unspecified 0.1 182.048 0.1 250.083 164.6 248.2
Total 100 182048 250083 26873.55 31269.9
Professor Robert Wilson
Political Economy II: Economics of Urban and Regional Policy
Location Quotient
Tables prepared by Jeffery Yorg, M.P.Aff.

Sector 1970 St. Louis City MSA United States


Construction 44,796 5,020,504
Manufacturing 258,869 20,848,070
Transportation 42,086 5,356,549
Wholesale Trade 48,377 3,199,365
Retail Trade 141,927 12,838,562
Business Services 25,836 2,535,200
FIRE 46,149 3,935,351
Personal Services 37,950 3,734,658
Public Administration 50,329 4,338,620

Sector 1990 St. Louis City MSA United States


Construction 61,350 7,214,763
Manufacturing 219,038 20,462,078
Transportation 95,408 8,205,062
Wholesale Trade 56,546 5,071,026
Retail Trade 199,098 19,485,666
Business Services 55,909 5,577,462
FIRE 84,486 7,984,870
Personal Services 32,360 3,668,696
Public Administration 47,133 5,538,077

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