An Application of the Stock Adjustment Model in Estimating Employment Multipliers for the South Central Louisiana Petroleum Economy 1964–84

The South Central Louisiana Petroleum Economy received an economic rent from its petroleum resources during the energy crisis of the 1970s and early 80s. A differential export-base model incorporating a geometric lag was developed for estimating dynamic employment multipliers. This technique is especially applicable to regional economies in which exports are a major economic factor. Employment multipliers were estimated using ordinary least squares (OLS) regression. Results from the analysis indicate that agriculture, oil and gas mining, and manufacturing are highly significant employment generators. Both long-run and short-run employment multipliers were derived from the model. It is estimated that a five-dollar change in the real price of crude oil will result in a long-run employment change of 8,027 for the oil and gas mining industry. Based on estimates of the long-run multiplier, this will result in a total employment change of 28,014 for this economy.     

Regional Innovation Systems: Implications for Nonmetropolitan Areas and Workers in the South

ABSTRACT A public policy response to global competition is the creation of a geographic concentration of innovative activity (regional innovation systems [RIS]) that will enhance metropolitan economic development through knowledge spillovers, product development, and new firm spin‐offs. This article identifies three types of RIS in the thirteen southern states based on a cluster analysis of twenty indicators of innovative and entrepreneurial activity. Next, regression analysis is used to determine if the 1990–2000 growth rates of nonmetro county population, employment, and earnings were related to proximity to an RIS after controlling for other county characteristics associated with local economic development. The research findings indicate that nonmetro counties near an RIS experienced more rapid population and employment growth; however, changes in nonmetro growth rates varied by type of regional innovation system. In addition, proximity to an RIS had a stronger impact on nonmetro population change than on nonmetro job growth.     

Regional Growth Dynamics in the Service Sector: The Determinants of Employment Change in UK Regions, 1971–2005

There is a need to better understand the dynamics relating to the evolving economic structure of regions, in particular factors concerning deindustrialisation and the growth of services. In order to unpick the dynamics relating to contemporary regional evolution, this paper examines regional employment in the UK's services sectors from 1971 to 2005. The analysis utilises the statistical technique of multi‐factor partitioning to examine the evolutionary dynamics of employment change in the UK service sector. Overall, differing growth trajectories in services employment across regions appear to be the result of the different underlying industrial structures observed within the regions themselves. The findings indicate that the industrial structure of a region has a significant influence on employment change in services, with related variety being of greater consequence than specialisation. This suggests that diversity, or urbanisation, effects have a greater influence than specialisation effects on “lighter” industries than “heavier” industries. Spatio‐temporal variations within the development of services are evident in the analysis, and there is evidence of convergence across the regions for all sub‐sectors examined. It concludes that in an increasingly services‐dominated economy, diversity and related variety have some weight in explaining regional development paths.     

Integrating Economic Base Theory with Regional Adjustment Models: The Nonmetropolitan Rocky Mountain West

ABSTRACT Interest in the use of adjustment models has recently increased as analysts have come to see the value of these models in the study of regional growth processes. Adjustment models are especially useful in clarifying the nature and direction of population-employment interactions. However, other models of regional growth suggest that employment should not be treated as a single homogeneous variable, as is the usual assumption in regional adjustment models. This paper looks at the issue of employment disaggregation, and suggests that adjustment models can be alternatively specified by making use of economic base theory to separate employment into at least two broad sectors. Alternative economic base specifications are tested using data for the nonmetropolitan counties (n=254) of the US. Rocky Mountain West during a recent time period. The results show that an economic base version of the adjustment model provides insights to regional change that are not available from the traditional version of the model.     

Integrating Firm Dynamics into the Shift‐Share Framework

ABSTRACT This article integrates firm birth and death data into a shift‐share analysis framework. The proposed methodology can be used when data availability does not allow for the direct association of employment changes to business demographics at the regional level. It may be also used as an exploratory step before any explanatory econometric work is undertaken as a means of identifying classes of potential control variables. Applying the method to Greek data suggests that firm‐size heterogeneity should not be ignored, that local conditions matter more than regional economic structure, and that the latter are asymmetrical across sectors when it comes to the effects of business demographics on regional employment or output growth.     

Manufacturing Output Indexes for a Metropolitan Area: A Look at New Economic Indicators

The purpose of this paper is to construct monthly manufacturing output indexes for a metropolitan area, employing a method used by the Federal Reserve Banks to construct regional manufacturing indexes. The Tulsa metropolitan area is the region considered. The index of total manufacturing output is included in a vector autoregression model of the Tulsa economy. The results indicate that the linkages between manufacturing activity and non-manufacturing employment differ from the linkages between employment in those sectors, and that since the early 1980s both sectors have become less sensitive to changes in the price of oil.     

Estimating the economic impacts of elderly migration: an input-output analysis

"This paper quantifies...the economic impacts of elderly in-migration on the output, earnings, and employment of a receiving state's economy. Data from the Consumer Expenditure Survey and estimates of the total redistribution of income to Florida resulting from elderly in-migration are used to calculate the direct effects by industry. A model for the state of Florida based on the Regional Input-Output Modeling System (RIMS II) is used to estimate the total impacts. The large migration flows and the considerable economic resources of the elderly lead to large, positive total impacts on the Florida economy."     

Global Markets and the Role of Geographical Proximity in Mexico's Employment Growth

In the context of greater economic integration with global markets and structural economic reforms, this paper analyses regional and sectoral employment growth dynamics in Mexican states between 2004 and 2014. The methodology is based on spatial shift‐share analysis that explicitly considers interregional interactions in employment while assessing potential spillover effects arising from spatial interactions among states and industrial sectors. The results suggest a competitive effect from some industries—such as those related to science and specialized suppliers, intensive scale industries and dominated providers—which led to the formation of industrial corridors of neighboring states that connect the central region with the northeast region of the country. It was also found that proximity to states such as Nuevo Leon, Queretaro, Guanajuato, San Luis Potosi, and Puebla has positively influenced neighboring states in terms of employment growth rates. The results also support the argument of some sort of de‐concentration of economic activity in the capital, Mexico City, toward neighboring states.     

A Regional Comparative Static CGE Analysis of Subsidized Child Care

ABSTRACT Concerns with the equity of societal income distribution typically underpin the provision of government subsidies to low‐income households, in which such subsidies are commonly believed to reduce economic growth. Using a regional computable general equilibrium (CGE) model, this study examines the equity and growth aspects of subsidizing formal child care services for low‐income households at the state level. The results suggest that state government subsidization of formal child care services does not necessarily reduce the level of economic activity, even when accounting for negative growth effects of tax increases required to finance the subsidies. The CGE model also reveals economic impacts on households and industry sectors not directly affected by the subsidies, impacts that would be omitted from a partial equilibrium microeconometric appraisal.     

Productivity Change in Manufacturing Regions: A Multifactor/Shift-Share Approach

ABSTRACT The traditional shift-share model measures the combined effects of output growth and productivity change on employment. A region with above average employment growth either has a favorable industry mix or enjoys a competitive advantage over other regions. To separate the effects of output and productivity, the shift-share model is extended to decompose the effects of changes in output and productivity on employment. This paper modifies the Rigby-Anderson extension by separating the contribution of labor and capital to productivity growth in the analysis of regional economic performance, and investigates twenty (two-digit SIC) manufacturing sectors in twelve states (six snowbelt, six sunbelt states) to assess whether observed changes in employment were due to changes in output or to productivity.     

基于主成分和GIS 的关天经济区区域经济空间分异研究

在关中-天水经济区＂一核、一轴、三辐射＂的空间发展战略基础上,对经济区县域生产要素禀赋和生产技术水平等基本特征进行综合评价,据此划分区域并进行各区产业功能定位,以期为促进产业整合与升级和优化区域经济结构提供科学依据。运用多元统计的主成分分析,对研究区65个区（县）经济发展状况进行综合评价;运用区域分工指数和区位商衡量各县之间的产业集聚趋势,采用层次聚类法和GIS空间分析将经济区划分为5个区域;最后提出促进经济区地区分工及一体化,统筹区域经济发展的对策建议。     

The Structure of Agricultural Unemployment in the United States

This paper examines whether employment in agriculture is more sensitive to fluctuations in the level of economic activity than is employment in the economy as a whole. The analytical framework of the investigation rests on two functional relationships between unemployment and economic activity introduced by Thurow. The results indicate that agricultural unemployment is impacted by variations in economic activity to the same extent as is total unemployment. Finally, when subjected to a stability test, the underlying structural relationships are deemed to be stable over the sample period (1948-1988).     

基于熵权TOPSIS和ESDA的甘肃省县域经济时空演变研究

县域经济是我国国民经济的基本单元,研究县域经济差异对于一个地区的发展以及整个国民经济的发展都有重大意义。本文以甘肃省86个县域及嘉峪关市共87个地域为研究单元,选取人均GDP 、第二、三产业比重等12项相关指标建立了县域经济发展水平综合评价体系,利用熵权TOPSIS法和ESDA法对近20年来甘肃省各县域经济发展水平进行时间和空间两方面的评测。结果表明：从1995—2015年20年期间,甘肃省经济明显增长,但与全国各地经济发展水平相比还处于缓慢发展阶段;甘肃省县域经济发展水平两极差异明显,排名靠前及靠后的县域在20年间变化不明显,省会兰州及河西地区发展水平较高,陇中和陇南地区县域发展水平整体较低,呈现“强者恒强,弱者恒弱”的格局;空间自相关性显著,低值聚类的显著性更强;热点分析显示,甘肃省县域经济呈现明显的单核型经济空间结构,发展水平较高的地区对周边城市带动作用很小,地域差异明显。     

Services in Regional Employment Change

This article examines the role of services in regional employment change in Illinois from 1972–87. The approach applies recent advances in time-series analysis to investigate both the long-term and short-term relationship among employment in three sectors: goods production, export-potential services, and local services. The results indicate that there is not a long-term relation among these variables, i.e., that they do not move together in the long run. In the short term, the evidence is that employment in the service sectors follows employment change in goods production, although the response persists for only six months. The results suggest that a policy of targeting export-potential services is not likely to produce sustained employment growth in the other sectors.     

Do Entrepreneurs Enhance Economic Growth in Lagging Regions?

Because support for entrepreneurship is often a core part of economic development strategies, we investigate whether it is important for growth in lagging, rural U.S. regions by focusing on Appalachia. While entrepreneurship has the advantage of being endogenous and “home grown,” previous research suggests that remote rural regions may lack the agglomeration economies to benefit greatly from entrepreneurship. Using county‐level data, we explore the relationship between entrepreneurship and economic growth, employing self‐employment and small business data as proxies for entrepreneurship. We look at the results for the Appalachian Regional Commission (ARC) region, using its immediate Appalachian neighbors outside the ARC region as a control group. Moreover, we also account for self‐sorting by proprietors to locate in expanding regions. Despite strong barriers to growth in Appalachia, our empirical results suggest that self‐employment is positively associated with employment and income growth, and that efforts to promote entrepreneurial capacity may be among the few economic development strategies with positive payoffs in remote regions.     

U.S. Commuting Networks and Economic Growth: Measurement and Implications for Spatial Policy

Labor market areas (LMAs) have long been a staple of regional and urban analysis. As commuting patterns have expanded over time, these areas have become larger and more complex, and the dichotomous designation of a county either belonging to an LMA or not may no longer be adequate. We apply recent advances in network science to conduct a more refined analysis of U.S. commuting patterns, and examine their effects on local economic growth. Results show that network degree and entropy measures explain variations in county per capita income growth patterns. Higher in‐ and out‐commuting entropies are associated with lower per capita income growth, but their interaction enhances economic growth in places simultaneously open to both in‐ and out‐commuters. Using these results, common ground may be found for creating new forms of regional governance that better reflect local realities of cross‐county border flows of workers and economic activity.     

Community Level Multipliers for Rural Development Initiatives

ABSTRACT The success of economic development initiatives in achieving a significant and sustained improvement for a target area is strongly influenced by the size of the local multiplier. New economic activity is generally site specific and the proportion of spending and re-spending that generates local multiplier effect will vary with the hierarchical level of community in which the activity is located. Leakages in the form of outshopping by community residents and expenditures in the community that constitute payments to agents outside the home community are estimated for communities in six functional levels that, combined, represent the complete trade center hierarchy in Saskatchewan. The resulting multipliers are found to vary with functional level, with the smallest communities having the smallest multipliers. When rural areas are being targeted for economic development, more rural economic activity can be generated by focusing on relatively large rural communities.     

Foreign Industrial Exports and State Manufacturing Performance

ABSTRACT Foreign exports are claiming growing shares of US. state economic production. While growth of foreign exports is often cited as a driving force for state economic growth, little attention has been paid in prior research to the issue of Granger causality between foreign exports and economic performance at the state level. This study examines Granger causality between foreign manufacturing export growth and state manufacturing performance during the period from 1980 to 1991. Results indicate that, at the aggregate level, there is a bi-directional Granger causal relationship between foreign exports and state manufacturing activity. Among the individual industrial sectors, results are more mixed, however, with sectors displaying either export-led growth, reverse Granger causality, or in some instances, negative Granger causality.     

Location matters: A spatial econometric analysis of regional resilience in the European Union

The aim of this study is to empirically examine regional resilience by assessing economic growth patterns in two distinct groups of regions across the European Union in the aftermath of the 2008 economic and financial crisis. In an effort to consider the regions as interconnected economic areas and account for spillover effects, the model incorporates complex spatial effects that consider both spatial heterogeneity and spatial dependence. The analysis follows a step‐wise approach. First, spatial heterogeneity is assessed by employing Exploratory Spatial Data Analysis, which identifies two distinct spatial regimes, a core and a periphery, based on their initial level of economic development. A Spatial Durbin Model is then employed to estimate the determinants of regional resilience and growth in both regimes, including potential spillover effects. Results indicate that while both spatial regimes experience processes of economic convergence, recent determinants of growth, as well as spillover dynamics, differ across the two. In the core regime, better institutions, higher shares of investment, and an economy specialized in higher value‐added sectors significantly spur domestic growth, with investment also inducing positive spillover effects to neighbouring regions. In the peripheral regime, low shares of lower‐secondary educational attainment and high shares of tertiary educational attainment have a significant positive effect on domestic growth, with higher shares of tertiary educational attainment also inducing positive spillover effects. Moreover, technological readiness is also identified as an important factor in the peripheral regime with positive spillover effects. Upon the bedrock of these findings, initial policy proposals are offered.     

A quantitative method for measuring regional economic resilience to the great recession

Regional economic resilience can be defined as an economy’s ability to withstand and recover quickly from shocks. The ability to measure resilience is necessary to developing our understanding of what influences resilience. In this paper, we develop a new, two‐dimensional quantitative measure of resilience using observed differences between expected and actual employment in a region following a shock and distinguish the response to the shock from random variation. We demonstrate one application of this metric to US county‐level employment data to compare county responses to the 2007–2009 national recession and discuss how different regions of the United States responded to the shock of the Great Recession in terms of resilience.