INITIAL APPLICATIONS OF FUZZY SET PROCEDURES FOR ESTIMATION OF EXPORT BASE EMPLOYMENT

Current export base methods that calculate basic and non-basic employment are too restrictive because they fail to account for uncertainty involved in the process. This paper shows the assignment of industries as either basic or non-basic by the location quotient procedure does not consistently represent the data for Nevada counties. Using fuzzy set procedures and membership functions in conjunction with the location quotient allow more flexibility in terms of matching the data for each industry in the region of interest. Using fuzzy set procedures we determine the proportion of employment that is basic and non-basic in nine non-governmental industries.