Методы региональных экономических исследованийБалансовый метод – составление регионального баланса для оптимального соотношения между отраслями рыночной специализации
Soviet planning; it is the most operational (or bureaucratic)
of all balances in the sense that all its elements – output orders, import and export quotas, inventory changes and all allotments of materials to various consuming groups – hang on administrative decisions”
J.M. Montias, Planning with Material Balances in Soviet-Type Economies, The American Economic Review, Vol. 49, No. 5, Dec., 1959
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Location Quotient I LQ < 1.0 = All Employment
is Non-Basic A LQ that is less than one suggests
that local employment is less than was expected for a given industry. Therefore, that industry is not even meeting local demand for a given good or service. Therefore all of this employment is considered non-basic by definition.
suggests that the local employment is exactly sufficient to meet the local demand for a given good or service. Therefore, all of this employment is also considered non-basic because none of these goods or services are exported to non-local areas.
provides evidence of basic employment for a given industry. When an LQ > 1.0, the analyst concludes that local employment is greater than expected and it is therefore assumed that this "extra" employment is basic. These extra jobs then must export their goods and services to non-local areas which, by definition, makes them Basic sector employment.