The Annals of Regional Science

, Volume 46, Issue 2, pp 313–329 | Cite as

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

  • David MushinskiEmail author
  • Donald Nichols
Original Paper


Identification of the export nature of an industry in a center within a region has proven difficult because of the complexities, dynamic nature and maturation of regional economies. Location Theory and the work of Jan Tinbergen imply that some industries (hybrid industries) in a center may produce both for local consumption and for export within a region. We focus on hybrid industries in Metropolitan Statistical Areas (MSAs) in the Census Midwest region. We present new statistical tests designed to identify the export component of three different types of hybrid industries. The first type of industry is present in virtually all MSAs, and appears to produce for export in a subset of those MSAs. We present a test to identify the subset of MSAs for which the industry is hybrid. The second type of hybrid industry is absent in a number of MSAs and 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 industry in the region which produces for export production. Finally, we focus on high-order business services in the five largest MSAs in the Midwest region. While these industries typically produce for local consumption they may produce for export, especially in large MSAs. We present a statistical test for identifying the export component of these industries in large MSAs. To varying degrees, we compare our tests with results obtained using location quotients.

JEL Classification

R11 R12 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Cutler H, England S, Weiler S (2003) Determining regional structure through cointegration. Rev Reg Stud 33(2): 164–183Google Scholar
  2. Duranton G, Puga D (2000) Diversity and specialization in cities: why, where and when does it matter?. Urban Stud 37(3): 533–555CrossRefGoogle Scholar
  3. Farness DH (1989) Detecting the economic base: new challenges. Int Reg Sci Rev 12(3): 319–328CrossRefGoogle Scholar
  4. Gilmer RW, Keil SR, Mack RS (1989) The service sector in a Hierarchy of rural places: potential for export activity. Land Econ 65(3): 217–227CrossRefGoogle Scholar
  5. Greenhut ML (1995) Location economics: theoretical underpinnings and applications. Elgar, AldershotGoogle Scholar
  6. Hansen N (1994) The strategic role of producer services in regional development. Int Reg Sci Rev 16(1–2): 187–195Google Scholar
  7. Harris TR, Ebai GE, Shonkwiler JS (1998) A multidimensional estimation of export base. J Reg Anal Policy 28(1): 3–17Google Scholar
  8. Hill EW, Brennan JF (2000) A methodology for identifying the drivers of industrial clusters: the foundation of regional competitive advantage. Econ Dev Q 14(1): 65–96CrossRefGoogle Scholar
  9. Hitchens DMWN, O’Farrell PN, Conway CD (1996) The comparative performance of business services in Northern Ireland and the Republic of Ireland. Urban Stud 33(7): 1093–1110CrossRefGoogle Scholar
  10. Hogg RV, Craig AT (1978) Introduction to mathematical statistics. Macmillan, New YorkGoogle Scholar
  11. Isserman AM (1980) Estimating export activity in a regional economy: a theoretical and empirical analysis of alternative methods. Int Reg Sci Rev 5(2): 155–184CrossRefGoogle Scholar
  12. Keil SR, Mack RS (1986) Identifying export potential in the service sector. Growth Change 17(2): 1–10CrossRefGoogle Scholar
  13. McCann P, Sheppard S (2003) The rise, fall, and rise again of industrial location theory. Reg Stud 37(6–7): 649–663CrossRefGoogle Scholar
  14. Nichols DA (1993) The growth of business services tn Wisconsin. LaFollette Report, Center For Research on the Wisconsin Economy, Robert M. LaFollette Institute of Public Affairs, University of Wisconsin, Madison, Madison, WI, USAGoogle Scholar
  15. Nichols D, Mushinski D (2003) Identifying export industries using parametric density functions. Int Reg Sci Rev 26(1): 68–85CrossRefGoogle Scholar
  16. Roberts J (2003) Competition in the business services sector: implications for the competitiveness of the European economy. Compet Change 7(2–3): 127–146CrossRefGoogle Scholar
  17. Shearmur R, Alvergne C (2002) Intrametropolitan patterns of high-order business service location: a comparative study of seventeen sectors in Ile-de-France. Urban Stud 39(7): 1143–1163CrossRefGoogle Scholar
  18. Tinbergen J (1961) The spatial dispersion of production: a hypothesis. Swiss J Econ Stat 97: 412–419Google Scholar
  19. Tinbergen J (1967) The Hierarchy nodel of the size distribution of centres. Reg Sci Assoc Pap 20: 65–68Google Scholar

Copyright information

© Springer-Verlag 2009

Authors and Affiliations

  1. 1.Department of EconomicsColorado State UniversityFort CollinsUSA
  2. 2.Department of EconomicsUniversity of Wisconsin at MadisonMadisonUSA

Personalised recommendations