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AN ANALYTICAL METHOD OF GROWTH QUOTIENTS FOR UNDERSTANDING INDUSTRIAL DEVELOPMENT |
CHEN Yan-guang |
Department of Geography, College of Urban and Environmental Sciences, Peking University, Beijing 100871, China |
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Abstract The location quotient technique is commonly utilized to analyze economic development or compare regional industrial compositions. However, the location quotient is a static concept, which cannot reflect the growing advantages of different industrial sectors. In this paper, a new measurement termed growth quotients is proposed for comparing urban and regional industry compositions. Two kinds of growth quotient are defined:one is the sectoral growth quotient (SGQ) based on the relationship between an individual sector in a sub-region and the corresponding sector of a region, and the other is the regional growth quotient (RGQ) based on the relationship between an individual sector in a sub-region and all sectors of the whole region. The growth quotients are dynamic concepts, which can reflect the growing advantage of different industrial sectors. Further, two new spatial measurements of industrial development termed location entropy and growth entropy are defined by analogy with Theil's entropy. The similarity and differences between location quotient, growth quotient, growth entropy, and growth rates are discussed and illustrated by means of case analysis. In practice, the growth quotients, location quotient, growth entropy, location entropy, and shift share analysis can be integrated into a new analytical technique for comparing urban and regional industrial advantage.The location quotient mainly indicates the competitive advantage, while the growth quotients mainly reveal the competitive advantage of an industrial sector.
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Received: 28 March 2016
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