PORTAL USER GUIDE

Location Quotient

Location Quotients are proportional measures which show how much the incidence of something in an area or spatial unit differs from a larger area or region in which it sits. It may be used, for example, to show the reliance on an industry within a city compared to the country as a whole, or the percentage of people residing within a local government area, compared to the state as a whole.

The standard output of the LQ is a ratio, indicating how much more or less the spatial unit’s incidence is, compared to the larger area.

For example, an LQ of 1 indicates no difference between the area of interest and the overall incidence; an LQ of 0.65 would indicate an incidence in the area of interest is 35% lower than the overall incidence; an LQ of 1.35 would indicate an incidence 35% higher than the overall incidence.

This tool uses the following formulae for its implementation:

LQ= \left(\frac{p_i/P_i}{p_n/P_n} \right)

Where:

p_i= count of the phenomenon in spatial unit i

P_i= total population within spatial unit i

p_n= count of the phenomenon in larger area n

P_n= total population within larger area n

SET UP

For this worked example, we will calculate the location quotients for two industries in Western Australia. We first need to select our area and data:

Select Western Australia as your area.

Select ABS – Data by Region – Economy & Industry (LGA) 2011-2018 as your dataset with the following attributes:

  • Year: 2018
  • LGA Code
  • LGA Name
  • Number Of Businesses By Industry Mining No.
  • Number Of Businesses By Industry Agriculture, Forestry And Fishing No.
  • Number Of Businesses By Industry Total No

Inputs

Once you have set up your data, open the Location Quotient tool (Tools → Indices→ Location Quotient). The input fields are as follows:

  • Dataset Input: The dataset that you would like to run the location quotient tool on. Select ABS – Data by Region – Economy & Industry (LGA) 2011-2018.
  • Location Quotient Key Column: The region or spatial unit key for the areas of interest. Select LGA Code.
  • Location Quotient Region Variable: The attributes you would like to analyse, to see if their incidence is higher or lower in each area than overall.
    • Select Number Of Businesses By Industry Agriculture, Forestry And Fishing No.
    • Select Number Of Businesses By Industry Mining No.
  • Location Quotient Region Total: The total count for each region. Select Number Of Businesses By Industry Total No.

The input parameters are summarised in the image below, once complete click Run Tool.

Outputs

Once your analysis has run a dialogue box will open. Click Display to open the output table. For the Western Australian example used here, it should look something like the image below:

The output of the Location Quotient tool is a table. The table has the Location Quotient for each variable (xxx_LQ). This table can be downloaded as a CSV to your desktop. Missing rows of data in our example above correspond with regions that have no data in relation to mining or agriculture.

Looking for Spatial Data?

You can browse the AURIN Data Discovery:

 

How can you Create Impact?

Learn more about AURIN Researcher’s outcomes & real-world impact: