Regional disparities in specialisation
- Authors:
- OECD
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Pages
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70–75
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DOI
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10.1787/reg_glance-2007-12-en
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Abstract
Regional specialisation varies considerably among OECD countries. Specialisation is commonly measured by the Balassa-Hoover index: the ratio between an industry’s weight in a region and its weight in the country overall. A region is specialised in an industry when the index is above 1 and it is not specialised when the index is below 1. A region’s degree of specialisation, therefore, can be measured as the weighted average of its degrees of specialisation in each industry. The higher this value, the more specialised the region.