Spatial analysis of regional specialization using Hurricane Katrina as a case study

This paper explores the spatial dimensions of regional specialization, with special emphasis on areas of Louisiana, Mississippi, Alabama, and Florida that were in the path of Hurricane Katrina in 2004, 2005, and 2006. By focusing on how spatial dispersion of export base sectors changed, it can be shown that (1) regional specialization was clustered for certain sectors of the economy in areas that were also affected by Hurricane Katrina; and (2) that changes in regional specialization associated with Hurricane Katrina can be identified with local indicators of spatial association. Our results show that from 2004 to 2006, there was significant positive spatial autocorrelation for three sectors: leisure and hospitality services; natural resources and mining; and professional and business services, but that there was little change from year-to-year. On the other hand, financial activities and other services were significant only in the immediate aftermath of the storm, a result that suggests a shifting employment base to meet the increased demand for these services in storm-affected areas. Using local indicators of spatial association, we identify the flow and ebb of spatial clustering of other services in Louisiana. Specifically, in East Baton Rouge, St. Helena, West Feliciana, East Feliciana, Tangipahoa, and Livingston parishes.