Economic Policies and Research

Current Issue

By Issue

By Author

By Subject

Author Index

Keyword Index

About Journal

Aims and Scope

Editorial Board

Publication Ethics

Indexing and Abstracting

Related Links

FAQ

Peer Review Process

Journal Metrics

News

Calculating the Index of Localization and Specialization in the Production Industries of Iran's Provinces

Document Type : Original Article

Authors

1 Assistant Professor, Department of Economics, Faculty of Administrative Sciences and Economics, Arak University, Arak, Iran.

2 Assistant Professor, Department of Industrial Management, Faculty of Administrative Sciences and Economics, Arak University, Arak, Iran.

Abstract

The distribution of industrial activities, especially in developing countries, is an important research field. Economic reforms and rapid economic growth in many countries in the past few decades have attracted great attention from economists, and many economists have begun to study industrial geographic distribution and regional specialization in developing countries.Considering the importance of this issue in the developing country of Iran, in this research, localization and regional specialization have been calculated and analyzed using the cross-sectional data related to the factory industries of Iran's provinces at the level of ISIC (International Standard Industrial Classification) two-digit codes, 2019. The comparison of localization represents that the spatial distribution of industrial workshops in the provinces has been distributed with the least concentration, however, the employment-generating and value-creating power of these industrial workshops is distributed with greater inequality among the regions. The spatial distribution of research and development costs is also more spatially concentrated. The results of the regional specialization survey indicate that most industrial provinces have industrial diversity and take advantage of different industries. The more industrialized the province, the less regional specialization in limited industries. Moreover, deprived and less developed provinces have low industrial diversity and are more focused on specific industries.

Keywords

Main Subjects

References
Agarwal, S., & Behera, S. R. (2024). LOCATION AND GEOGRAPHICAL CONCENTRATION PATTERNS OF INDIAN MANUFACTURING INDUSTRIES: EVIDENCE FROM THE RURAL AND URBAN AREAS. Singapore Economic Review, 69(3). https://doi.org/10.1142/S0217590823500388
Aiginger, K., & Rossi-Hansberg, E. (2006). Specialization and concentration: a note on theory and evidence. Empirica, 33, 255-266. https://doi.org/10.1007/s10663-006-9023-y
Aiginger. K. (1999), “Do industrial structures converge? A survey on the empirical literature on specialization and concentration of industries”,  WIFO-Working papers.
Amirapu, A., Hasan, R., Jiang, Y., & Kelvin, A. (2019). Geographic concentration in Indian manufacturing and service industries: Evidence from 1998 to 2013. Asian Economic Policy Review, 14(1), 148–168. 10.1111/aepr.12251
Behrens, K., & Bougna, T. (2015). An anatomy of the geographical concentration of Canadian manufacturing industries. Regional Science and Urban Economics, 51, 47-69. https://doi.org/10.1016/j.regsciurbeco.2015.01.002
Chan, L. Y., & Ou, W. (2024). An Empirical Research of Industry Geographic Concentration and Trade in Guangxi of China. International Journal of Trade, Economics and Finance, 15(2), 52-56. doi: 10.18178/ijtef.2024.15.2.769
Chandler, A., Hagstrom, P., and Sovell, O. (2003). The Dynamic Firm: the Role of Technology Strategy, Organizations and Regions. New York: Oxford University Press. https://doi.org/10.1093/0198296045.001.0001
Clark, G.L., Feldman, M.P. and Gertler, M.S. (2003)  Oxford Handbook of Economic Geography. Oxford: Oxford University Press.
Cutrini, E. (2010). Specialization and concentration from a twofold geographical perspective: evidence from Europe. Regional Studies, 44(3), 315-336. DOI:10.1080/00343400802378743
Dadashpoor, H., & Fathejalali, A. (2013). Analyzing regional specialization and spatial concentration patterns of industries in Iran. Jurnal of Regional Planning, 3(11), 1-18. (In Persian). 20.1001.1.22516735.1392.3.11.3.0
Dauth, W., & Suedekum, J. (2016). Globalization and local profiles of economic growth and industrial change. Journal of Economic Geography, 16(5), 1007-1034. https://doi.org/10.1093/jeg/lbv028
Ezcurra, R., Pascual, P., & Rapún, M. (2006). Regional specialization in the European Union. Regional Studies, 40(6), 601-616. https://doi.org/10.1080/00343400600868754
Gamidullaeva, L., Korostyshevskaya, E., Myamlin, A., & Podkorytova, O. (2022). Exploring regional industrial growth: does specialization explain it?. Economies, 10(7), 172. https://doi.org/10.3390/economies10070172
Gómez‐Zaldívar, M., Mosqueda, M. T., & Alejandra Duran, J. (2017). Localization of manufacturing industries and specialization in Mexican states: 1993–2013. Regional Science Policy & Practice, 9(4), 301-315.  https://doi.org/10.1111/rsp3.12111
Goschin, Z., Constantin, D., Roman, M., & Ileanu, B. (2009). Regional specialization and geographic concentration of industries in Romania. South-Eastern Europe Journal of Economics 1 [1]: 99–113.
Harrison, B., Kelley, M. and Gant, J. (1996). Innovative firm behavior and local milieu: exploring the intersection of agglomeration, firm effects, industrial organization and technical change,  Economic Geography, 72, 233–58. https://doi.org/10.2307/144400
He, C., Pan, F & Sun, L. (2007). Geographical concentration of manufacturing industries in China. Acta Geographica Sinica. 62. 1253-1264. DOI: 10.11821/xb200712002
Heckscher, E. (1919), The Effect of Foreign Trade on Distribution of Income, Economisk Tidskrift, 21, p. 1-32.
https://doi.org/10.1111/j.1468-2257.2005.00295.x
Hu, S., Song, W., Li, C., & Zhang, C. H. (2019). The evolution of industrial agglomerations and specialization in the Yangtze River Delta from 1990–2018: An analysis based on firm-level big data. Sustainability, 11(20), 5811.  https://doi.org/10.3390/su11205811
Jan Stejskal & Petr Hajek (2012) Competitive advantage analysis: a novel method for industrial clusters identification, Journal of Business Economics and Management, 13:2, 344-365. http://dx.doi.org/10.3846/16111699.2011.620154
Kang, J., Xu, W., Yu, L., & Ning, Y. (2020). Localization, urbanization and globalization: Dynamic manufacturing specialization in the YRD mega-city conglomeration. Cities, 99, 102641. https://doi.org/10.1016/j.cities.2020.102641
Kaygalak, İ. (2018). Localization and specialization tendency of manufacturing in Turkey. International Journal of Geography and Geography Education, 38, 171-186. https://dspace.balikesir.edu.tr/xmlui/handle/20.500.12462/5524
Krugman, P. (1998). What's new about the new economic geography?. Oxford review of economic policy, 14(2), 7-17. https://doi.org/10.1093/oxrep/14.2.7
Lu, J., & Tao, Z. (2005). Regional specialization and inter-region similarity: An empirical analysis of economic geography in China. China Journal of Economics, 1, 29–52.
Lu, Z., & Deng, X. (2011). Regional specialization: A measure method and trends in China. MPRA Paper No. 33867.
Marshall, A. (1920) Principles of Economics. 8th Edition, Macmillan, London.
Martin, R. and Sunley, P. (1997). Paul Krugman’s geographical economics and its implications for regional theory, Regional Studies, 77, 259–92.  https://doi.org/10.2307/144401
Mehregan N, Teymorei Y. Geographic Concentration in Industry of Iran and Effective Factors in it. TFI 2014; 2 (1) :93-122. (In Persian)
Morosini, P. (2004). Industrial clusters, knowledge integration and performance, World Development, 32(2), 305–326. https://doi.org/10.1016/j.worlddev.2002.12.001
Mulligan, G. F., & Schmidt, C. (2005). A note on localization and specialization. Growth and Change, 36(4), 565-576. DOI:10.1111/j.1468-2257.2005.00295.x 
Porter, M. E. 1990. The Competitive Advantage of Nations. New York: The Free Press.
Porter, M.E. and Sovall, O. (1998) The role of geography in the process of innovation and the sustainable competitive advantage of firms,. New York: Oxford University Press. https://doi.org/10.1093/0198296045.003.0019
Ricardo, D. (1817), On the Principles of Political Economy and Taxation (edition 1971), Penguin, Harmondsworth.
Saikia, D. (2011). Industrial location under globalization in India: Evidence from unorganized manufacturing industries. Economics Bulletin, AccessEcon, 31(2), 1–28.
Sharma, V. N., &  Tiwari, A. K.  (December 2014). A survey of research in industrial geography in India. Transactions of the Institute of Indian Geographers, 36(2), 185–206.
Economic Policies and Research
Volume 3, Issue 4 - Serial Number 12
January 2025
Pages 153-181
Files
Share
How to cite
Statistics