Bias, unreliability and omission have been documented in traditional sources of trade
data; the lack of service data in trade statistics is the most frequently cited
shortcoming. Current trade liberalization is likely to exacerbate these deficiencies.
This paper develops and applies a location quotient based methodology for
analysing core-periphery dualism, thus obviating the use of trade data. Our
application to the European Union shows agglomeration in core areas of high
technology, large scale manufacturing, and producer service industries. Peripheral
countries are shown to specialize in agriculture, extractives, low technology
manufacturing, and standardized production. Detailed examination of two peripheral
economies, Ireland and Denmark, finds that each departs from the mean of
peripheral nations. A comparison of proxied trade data to actual trade data indicates
that the location quotient method is a statistically viable means of proxying trade
patterns
