A stochastic independence approach for measuring regional specialization and concentration.

This paper proposes an integrated framework for discussing issues related to regional concentration, sectorial specialization and overall localization by considering these concepts as a row‐column association– or non‐independence– in a two‐way contingency table 'regions × sectors'. This is the approach of stochastic independence, in which the degree of concentration, or of specialization, is measured by discrepancies among distributions: between profiles and a uniform distribution for absolute concepts; between profiles and the corresponding marginal distribution for relative concepts; or between the joint distribution and the product of the marginal distributions for overall localization. This paper discusses the benefits of this integrating approach, particularly for the practitioner facing a multifaceted literature. [ABSTRACT FROM AUTHOR]