Location Quotient by Employment
. . .oil
and gas
employment
in that
metro area
is more
than six
times that
in a typical
metro area
of the same
size.
Sources: EMSI, and author’s calculations.
Laredo has a similar Location Quotient in oil and gas employment, but its employment
concentration in transportation and warehousing is equally high. By contrast, San Antonio
and other metro areas in South Texas are more economically diversified and thus have fewer
industries with relatively high employment concentration.
Annual Review of South Texas Economy
DIVERSIFICATION VS. SPECIALIZATION
The accompanying bar chart displays the Location Quotients of industries for the five South
Texas metro areas. The LQ readings are similar across regions for some industries, such as in
the service sector, but vary remarkably for other industries, such as mining and construction.
The highest Location Quotient is the mining sector in Corpus Christi. Its reading indicates that oil
and gas employment in that metro area is more than six times that in a typical metro area of the
same size.
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