What exactly do economists mean when they refer to a regional economy? What tools do they use to understand, measure, and compare the important economic activities that take place within a geographical area?
- In this unit, you’ll first be introduced to Location Quotient (LQ), a tool economists use to understand and define the economic activity within a region, as preparation for modeling a regional economy. (Note: You will delve more deeply into Location Quotient–and practice applying this tool yourself–in a later unit.)
- Location Quotient provides researchers with a systematic method for identifying the industries upon which a regional economy is based. In other words, having a basic understanding of LQ will prepare you to model a regional economy.
Completing this unit will equip you to do the following:
- Better define your region as an economic entity, using concepts such as diversification and specialization.
- Understand the concept of Location Quotient (LQ) as a key to measuring economic activity and performing economic modeling.
Materials will go here
Overview of Economic Base Theory