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A Multi-Sector Export Base Model Of Long-Run Regional Employment Growth

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Author Info
Lego, Brian
Gebremedhin, Tesfa
Cushing, Brian
Abstract

The relationships between intersectoral export and local employment and regional economic growth are analyzed in a long-run equilibrium framework. Dynamic location quotients decompose regional employment into export and local components for multiple sectors. Johansen's Full-Information Maximum Likelihood (FIML) approach is used to identify the existence and resultant rank of the co-integrating relationship between sectoral export and local employment in West Virginia's four metropolitan areas. Empirical results indicate inter-sectoral basic and non-basic employment form a co-integrating system of equations. Furthermore, this analysis shows that inter-sector shocks to local and export employment may cause multipliers to be positive or negative in magnitude.

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File URL: http://purl.umn.edu/31294
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Publisher Info
Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 29 (2000)
Issue (Month): 2 (October)
Pages:
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Handle: RePEc:ags:arerjl:31294

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Keywords: Labor and Human Capital;

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  1. Clifton B. Luttrell & Charles M. Gray, 1970. "Metropolitan area growth: a test of export base concepts," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 8-24. [Downloadable!]
  2. Osterwald-Lenum, Michael, 1992. "A Note with Quantiles of the Asymptotic Distribution of the Maximum Likelihood Cointegration Rank Test Statistics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 461-72, August.
  3. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July. [Downloadable!] (restricted)
  4. Douglass C. North, 1955. "Location Theory and Regional Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 63, pages 243. [Downloadable!] (restricted)
  5. Lesage, James P. & Reed, J. David, 1989. "The dynamic relationship between export, local, and total area employment," Regional Science and Urban Economics, Elsevier, vol. 19(4), pages 615-636, December. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.


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