AQUA BOOK 2015 - Page 36

DIVERSIFICATION OR SPECIALIZATION 34 Some industries are more labor intensive than others, so employment distributions alone do not provide the full picture about the key drivers of economic growth. Location Quotients can be calculated for the amounts of income, or Gross Regional Product, generated by different industries in the same way as for employment. The accompanying bar chart shows Location Quotients based on GRP. The highest LQ is Laredo’s transportation and warehousing sector. Its reading at 4.5 is the same as its corresponding reading based on employment. In addition to the oil and gas industry, Corpus Christi’s Location Quotient is higher than two for its construction and manufacturing industries. Location Quotient by GRP . . .exportoriented industries are important economic drivers because exports generate income. . . Regional economic development has commonly been described in terms of growth in “export” industries. These industries typically export their goods or services outside the region, supporting “ancillary” industries, such as retail, housing and personal services. Those export-oriented industries are important economic drivers because exports generate income to pay for imports and support local economic activity. Location quotients help identify those industries. Annual Review of South Texas Economy