Location Quotient

EnP Ma. Luz V. Agbayani

Day 3, March 3, 2018

1
 Philippine Institute of Environmental Planners
ZAMPEN BASULTA Chapter

LOCATION QUOTIENT
-Specialization of an area with regard to a larger
reference area
-Measured in terms of employment
-Can be expressed in % or proportion
-If greater than 1, the specialization has a
comparative advantage among other industries
 Philippine Institute of Environmental Planners
ZAMPEN BASULTA Chapter

Employment of smaller
reference area, industry x Percent
employment in
Total employment of smaller
smaller area
reference area, industry x
Employment of larger
reference area, industry x Percent
Total employment of larger employment in
reference area, industry x larger area
 Philippine Institute of Environmental Planners
ZAMPEN BASULTA Chapter

EMPLOYMENT (In Thousands) by Industry Group, 2017

Major Industry Phils NCR LQ Rank
TOTAL 40,170 5,083

Agriculture, hunting, and forestry 8,909 16 0.014610 20

Fishing 1,219 12 0.077406 19

Mining and quarrying 204 2 0.094589 18

Manufacturing 3,497 569 1.286178 11

Electricity, gas, steam, & aircon 71 4 0.471344 17

supply
Water supply; sewerage, waste mgt 80 5 0.476270 16

Construction 3,863 524 1.072390 13

Wholesale and retail trade 7,564 1,139 1.190232 12

Transportation and storage 3,078 533 1.367318 8

Source of Basic Data: Philippine Statistics Authority (PSA)

 Philippine Institute of Environmental Planners
ZAMPEN BASULTA Chapter

EMPLOYMENT (In Thousands) by Industry Group, July 2017

Major Industry Phils NCR LQ Rank
Accommodation and food service 1,730 419 1.912537 6
Information and communication 408 125 2.419801 4
Financial and insurance 496 135 2.145635 5
Real estate activities 197 75 3.004718 1
Professional, scientific and 232 85 2.899981 2
technical
Administrative and support 1,402 444 2.504446 3
service
Public adm & defense; social 2,543 275 0.854504 14
security
Education 1,195 126 0.835465 15
Human health and social work 468 99 1.673403 7
Arts, entertainment, and 292 50 1.360317 9
recreation
Other service activities 2,723 444 1.289904 10
Source of Basic Data: Philippine Statistics Authority (PSA)
 Philippine Institute of Environmental Planners
ZAMPEN BASULTA Chapter

EMPLOYMENT (In Thousands) by Industry Group, 2017

Major Industry Phils NCR R1 R2

TOTAL 40,170 5,083 1,893 1,434

Real Estate 197 75 3 -

Activities

0.014731
% employment, 75
NCR real estate 5,083 0.00490
% employment, 197 =
Philippines real estate 40,170 3.00472 > 1

The proportion is greater than 1, therefore NCR specializes in the Real Estate Activities. In
other words, Real Estate industry in NCR has a comparative advantage among other
industries.
 Philippine Institute of Environmental Planners
ZAMPEN BASULTA Chapter

EMPLOYMENT (In Percent) by Industry Group, 2017

Major Industry Phils NCR R1 R2
TOTAL 100.0 100.0

Agriculture, hunting, and forestry 22.2 0.3

Fishing 3.0 0.2

Mining and quarrying 0.5 0.0

Manufacturing 8.7 11.2

Electricity, gas, steam, & aircon 0.2 0.1

supply
Water supply; sewerage, waste mgt 0.2 0.1

Construction 9.6 10.3

Wholesale and retail trade 18.8 22.4

Transportation and storage 7.7 10.5

Source of Basic Data: Philippine Statistics Authority (PSA)

 Philippine Institute of Environmental Planners
ZAMPEN BASULTA Chapter

EMPLOYMENT (In Percent) by Industry Group, July 2017

Major Industry Phils NCR R1 R2
Accommodation and food service 4.3 8.2

Information and communication 1.0 2.5

Financial and insurance 1.2 2.6

Real estate activities 0.5 1.5

Professional, scientific and 0.6 1.7

technical
Administrative and support 3.5 8.7
service
Public adm & defense; social 6.3 5.4
security
Education 3.0 2.5

Human health and social work 1.2 1.9

Arts, entertainment, and 0.7 1.0

recreation
Other service activities 6.8 8.7

Source of Basic Data: Philippine Statistics Authority (PSA)

 Philippine Institute of Environmental Planners
ZAMPEN BASULTA Chapter

% Share of employment in
% Share of Employment in smaller Real Estate (NCR)
area, in industry x % Share of employment in
Real Estate (Philippines)
% Share of total employment of larger
reference area, industry x = 1.5%
0.50%
= 3%

The proportion is greater than 1, therefore NCR specializes in the Real Estate Activities. In
other words, Real Estate industry in NCR has a comparative advantage among other
industries.
 Philippine Institute of Environmental Planners
ZAMPEN BASULTA Chapter

EMPLOYMENT (In Thousands) by Industry Group, 2017

Major Region 9 ZC ZDS ZDN Pagadia Dipolog Dapita
Industry n City City n City
Primary
Secondary
Tertiary
Total

Does ZC specialize in Tertiary industries?