Coefficient of localization

Aim of the method/technique	The coefficient of localization measures the tendency of economic sectors in the local or the regional economy to prefer certain locations with reference to the tendency of the sectors in the regional or the national economy respectively.
Scale – spatial and temporal	Local and regional level
Brief description	The coefficient of localization (CL) is as follows: Air: employment, income, output, investment in region (or, spatial subdivision) r in sector j Ar: total employment, income, output, investment in region (or, spatial subdivision) r Ain: total employment, income, output, investment in the ‘country’ in sector j An: total employment, income, output, investment in the ‘country’ Zero (0) means equal distribution of economic sectors in the spatial economy, 1 means concentration in certain locations.
Data requirements	Sectoral employment, income, investments or other economic data at local, regional and national level.
Main applications in cropland , grazing land and forests & shrubland regions	---
Strengths and weaknesses	The value of the CL is affected by the level of spatial and sectoral aggregation as well as by the time period to which the data correspond. Major weakness is the lack of a theoretical framework to interpret the values of the CL meaningfully.