Location Quotient Approach Research Articles

Assessment of Local Chicken Production Base Area in Minahasa Regency: A Location Quotient Approach

Local chickens have considerable potential to be developed and are reared as a source of animal protein and income. The production of local chickens is distributed across Minahasa Regency under a traditional free-ranging system. This study aims to assess the base area of local chicken farming and to determine the distribution of the superior commodity through the growth and share of local chicken production. Assessing the base area of the region for local chicken production can serve as the basis for the evaluation and design of policies. This study utilized a location quotient (LQ) approach in the empirical works in the regency and district. This analytical tool was applied to analyze the dynamics of the economic base in the cases of districts in Minahasa Regency, Indonesia. The analysis results denoted that 17 of 25 districts in Minahasa Regency ranked among the top base areas for local chicken development, as indicated by the highest LQ coefficients. Concerning the district potential base area, three districts fell into the superior category, four districts belonged to the static category, and 15 districts were in the potential category. This evidence reflects the potential and prospects of local chicken farming and its development plans as a leading commodity in Minahasa Regency. Encouraging farmers to maintain and develop livestock enterprises could support the provision of animal protein for consumption. There has been hope for the future of the local chicken commodity thanks to its inclusive development in resource-rich base areas.

Determination of Leading Fruit Commodities in Barat Miomaffo District (Sallu Village Case Study)

Determination of Leading Fruit Commodities in West Miomaffo District (Case Study of Sallu Village). This study aims to 1) determine the superior commodity of fruits based on the Location Quotient approach. 2) determine the fruit commodity based on the Analytical Hierarchy Process approach. The research was conducted using Location Quotient analysis and Analytical Hierarchy Process. The results showed that based on 1) the results of the LQ analysis stated Avocado, Mango, Jackfruit as superior commodities. 2) AHP results show that avocado with the largest weight value is 0.310. while the value of other commodities sequentially is oranges with a weight value of 0.265. mango with a weight value of 0.141 mango. and jackfruit with a weight value of 0.116. Based on the LQ and AHP values, quadrant analysis was carried out with the results of quadrant I it was known that avocado fruit was the leading commodity according to the results of the LQ (>1) and AHP (>0.25) analysis, quadrant II it was known that mango and jackfruit were superior commodities based on the analysis LQ (>1). While the results of AHP (<0.25) quadrant III revealed that citrus fruit is a leading commodity based on AHP (>0.25) while the results of LQ analysis (<1) stated that citrus is not a leading commodity.

Measuring the Relative Advantage of Economic Activities in the Provinces of Iran: Location Quotient Approach

Measuring the Relative Advantage of Economic Activities in the Provinces of Iran: Location Quotient Approach

Using Various Types of Location Quotients to Disaggregate Turkey’s Input-Output Table: An Application to the Production Structure of Region TR33

As many other developing countries, the statistical office of Turkey displays an input-output table at the national level only and it is not regularly updated. Yet, the need for regional-level information is growing because numerous publicly-funded development projects and private investments have taken place at the sub-national level over the recent years. In this paper we create an input-output table for one region, TR33, for the year 2014 by regionalizing and updating the national table through a location quotient approach. It allows us to calculate the regional employment and output multipliers across 35 sectors and to verify if their ranking varies across location quotient techniques. We expect our conclusions will help policy-makers and private investors take an informed decision when investing in TR33.

Regional Potential Analysis Based on Agricultural Commodities of Food Crops and Their Contribution to the Economy in the Karangsambung-Karangbolong Geopark Area, Indonesia: A Location Quotient Approach

The Karangsambung-Karangbolong Geopark Area is located in Kebumen, one of the districts with the highest poverty rate in the Province of Jawa Tengah, Indonesia. A regional economy can be improved by optimizing existing potentials in the agricultural sector, especially food-crop commodities. This research set out to determine 1) the basic or leading food crops per sub-district, (2) the relatively potential food crops to maintain, and 3) the rating of the carrying capacity of facilities in maintaining relatively potential commodities. This research used secondary data from the BPS-Statistics Indonesia, such as food-crop commodity production and infrastructure conditions. It employed the Location Quotient (LQ) method, the LQ’s strength criteria analysis and scalogram. The analysis results showed that each sub-district has distinct basic commodities, but rice, cassava and sweet potatoes were the best potential commodities to develop. The Karangsambung-Karangbolong Geopark Area is equipped with facilities and infrastructure with fairly good to good carrying capacities supporting the development of the three commodities.

Determination of economic sector in East Kalimantan, Indonesia

PurposeThis paper aims to analyze the superior economic sector by looking at its contribution to the gross regional domestic product (GRDP) of East Kalimantan Province, the economic base, the multiplier effect and the strength of inter-sectoral linkages.Design/methodology/approachThis study was designed through two research approaches, namely, quantitative and qualitative method. This is intended to complement the results of the phenomenon under study and to strengthen the analysis. Secondary data were analyzed by the level of contribution of the economic sectors to the GRDP, and the base sector was determined through the location quotient approach. The two methods of calculation helped to reveal the dominant economic sectors in East Kalimantan Province. The Input Output (IO) Table in 2016 was made up dated from the 2009 IO Table to be used as a basis for building Social Accounting Matrix data or known as the East Kalimantan Regional Socio-Economic Balance System (SEBS) (a matrix of 49 × 49 sectors) in 2017 by using the RAS method. To be consistent, these SEBS data are then aggregated so all commodities are combined into economic sectors used to determine the leading sector on the East Kalimantan Province SEBS in 2016 (a matrix of 41 × 41 sectors).FindingsBased on the assessment by scoring of the criteria for determining the leading economic sectors in East Kalimantan, i.e. the contribution of the economic sector to GRDP, the economic base, the multiplier effect (income, production factor, and output) and the linkages between sectors, both backward and forward linkage, shows the ten leading sectors as follows: the trade; paper and printed goods; financial institutions and other financial services; fertilizer; chemical and other rubber products; hotel and restaurant; general government; fisheries; excavation; and mining without oil and gas.Originality/valueSimilar research has never been done before in East Kalimantan; this is one of the originalities of this present study. No previous study has comprehensively studied the mediating effects of tourist value perception on the determination of economic sector, especially in Kalimantan, Indonesia.

Determining Factors of Potential Economy Sectors of Bantaeng Regency in South Sulawesi Province of Indonesia: An Analysis Using the Location Quotient Approach

Bantaeng Regency, one of the regencys in South Sulawesi Province, has some potential economy sectors to be developed. In order to know those potential economy sectors, one of the economy analysis which can be used is the Location Quotient analysis. In this research, the analysis will use Static Location Quotient (SLQ) and Dynamic Location Quotient (DLQ). The SLQ method is used to determine the base sectors (leading sectors) in Bantaeng Regency at one period of time. While DLQ method is used to determine whether a sector that is superior over a period of time are leading sectors for the period of time that will come. The analysis showed that in the year 2013-2014 the Trade and Retail sector; Car and Motorcycles Repair sector; Real Estate sector; Government Administration sector; Defence and Compulsory Social Security; and Other Services Sector is the leading economy sector in Bantaeng Regency. And in the year 2014-2015, the Trade and Retail sector; Cars and Motorcycles Repair sector; Real Estate sector; Service Sector Health and Social Work; and Other Services Sector is the leading economy sector in Bantaeng Regency.

Crime Concentration in Ireland in 2012: A Location Quotient Approach

Crime Concentration in Ireland in 2012: A Location Quotient Approach

A location quotient approach to producing regional production multipliers for the Irish economy

AbstractRegional issues in Ireland, although a relatively small and geographically homogenous country, attract considerable attention, much of which centres on the size of Dublin and the South East and its perceived dominant share of the national economy. Using location quotients (LQs) analysis and linking the production multipliers to their two digit NACE codes, this paper presents the first exploration of possible regional industrial specialization in related sectors in Ireland at the NUTS 2 level. Linking the production multipliers with NACE codes by region allows one to explore whether potential region specialization is associated with Jacobian externalities in Ireland. Using a relatively novel LQ approach, and a cut‐off value of 1.25 or above as an indicator of industrial specialization and clustering, this paper found that in the Border, Midlands West (BMW) region and the South East region, 29 and 32 sectors respectively had LQ greater than the cut‐off value of 1.25. In terms of Jacobian externalities, this paper found businesses in related sectors; particularly finance and insurance and transport and telecommunications are more likely to cluster in the BMW region. From a policy perspective this would indicate that there may be a role for the Regional Assemblies, particularly the Assembly for the BMW region to help develop and co‐ordinate regional industrial policy in Ireland. From a regional science perspective, this paper adds empirical evidence to the literature on Jacobian and related variety in regional economies.

Producing regional production multipliers for Irish marine sector policy: A location quotient approach

Economic activity does not exist in a vacuum. Activities in the marine sector not only directly affect the industries in the sector but also influence other sectors through inter-sectoral linkages. Recent research in Ireland has estimated the impact of inter-sectoral linkages of the marine sector at the national level via production multipliers. However, the importance of the marine sector on regional economies has been well established. Disaggregating the national Input-Output table using location quotients has become widely accepted as a quantitative method for regional impact assessment of industry performance. Using a relatively novel location quotient, the FLQ, this paper produces a set of regional production multipliers for ten marine based sectors for the Border, Midland and West (BMW) region and the South East (SE) region in Ireland. A final analysis, using the regionalised marine production multipliers provides a preliminary case study for the potential of a seafood cluster in the BMW region. Whilst concluding comments offer an insight into how the LQ method may be used to develop a strategy for the multi-sectoral Irish marine sector.

Nonsurvey Methods for Projecting the Input-Output System at A Small Region Level: Three Alternative Approaches

In this paper we propose new nonsurvey methods for simulating the input-output system at a small region level in an attempt to overcome the disadvantages of the simple location quotient approach. Two different models are newly proposed; one is derived directly from the traditional export determination model, and another is obtained by modifying the former model. After that, these two new methods as well as the simple location quotient method are applied to the actual data in Japan, with the aim of evaluating the performance of each method.

The Location Quotient Approach to Estimating Regional Economic Impacts

Abstract This article presents a theoretical rationale for the use of location quotients in estimating regional economic impacts. Then it suggests a number of procedural modifications which are consistent with that underlying rationale. Two of the modifications are implemented and are shown to improve the accuracy of the multiplier. Previous empirical work, often cited as evidence of the inaccuracy of the location quotient approach, is found to be questionable itself. The paper concludes, in part, that the location quotient approach can be a useful planning tool.

Economic base and input-output multipliers a comparison for Vancouver, B. C.

Employment multipliers for the metropolitan economy of Vancouver are derived from both economic base and input-out-put models of the region. The principal shortcomings of the location quotient approach in delineating the economic base of a region are reviewed, and empirical estimates are made of the understatement of exports resulting from this approach in light of survey data. The survey data and the author's judgment are then employed to yield a base employment multiplier of 1.99 for the region. Sectoral input-output employment multipliers are presented and conditions are derived under which an aggregated I-O multiplier is equal to the multiplier associated with the economic base model.