This paper solves one of the puzzles in the analysis of regional and industrial distributions of economic activity, the discrepancy between absolute and relative measures. It shows that the difference between an absolute and a relative Theil index of localization can be expressed in terms of...

Background: This paper discuss the effects of trade costs and comparative technology on industry location for the economy of China. Methods: The model assumes differences in comparative technology and different intraregional and interregional trade costs, and argues how different factors...