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Business Establishment Growth in the Appalachian Region, 2000-2007: An Application of Smooth Transition Spatial Process Models

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  • Xu, Wan
  • Lambert, Dayton M.
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    Abstract

    Business establishment growth in the Appalachian region (2000–2007) was regressed on industry sector composition controlling for demographic, physical, and economic determinants. We test the hypothesis that local response to growth determinants is geographically heterogeneous using Smooth Transition spatial process models. This class of models exhibiting endogenous regime switching behavior provides another tool for exploring the spatially heterogeneous effects of local determinants on economic growth.

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    File URL: http://purl.umn.edu/113517
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    Bibliographic Info

    Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

    Volume (Year): 43 (2011)
    Issue (Month): 03 (August)
    Pages:

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    Handle: RePEc:ags:joaaec:113517

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    Web page: http://www.saea.org/jaae/jaae.htm
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    Related research

    Keywords: Appalachia; business establishment growth; smooth transition models; spatial processes; Community/Rural/Urban Development; C21; C51; O47; R11;

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    1. Seong-Hoon Cho & Dayton Lambert & Zhuo Chen, 2010. "Geographically weighted regression bandwidth selection and spatial autocorrelation: an empirical example using Chinese agriculture data," Applied Economics Letters, Taylor & Francis Journals, vol. 17(8), pages 767-772.
    2. Terasvirta, T & Anderson, H M, 1992. "Characterizing Nonlinearities in Business Cycles Using Smooth Transition Autoregressive Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 7(S), pages S119-36, Suppl. De.
    3. Luc Anselin & Nancy Lozano-Gracia, 2008. "Errors in variables and spatial effects in hedonic house price models of ambient air quality," Empirical Economics, Springer, vol. 34(1), pages 5-34, February.
    4. Florax, Raymond J. G. M. & Folmer, Hendrik & Rey, Sergio J., 2003. "Specification searches in spatial econometrics: the relevance of Hendry's methodology," Regional Science and Urban Economics, Elsevier, vol. 33(5), pages 557-579, September.
    5. LE GALLO, Julie & ERTUR, Cem, 2000. "Exploratory spatial data analysis of the distribution of regional per capita GDP in Europe, 1980-1995," LATEC - Document de travail - Economie (1991-2003) 2000-09, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
    6. Roberto BASILE & Bernard GRESS, 2005. "Semi-Parametric Spatial Auto-Covariance Models Of Regional Growth In Europe," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 93-118.
    7. Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
    8. David A. McGranahan & Timothy R. Wojan & Dayton M. Lambert, 2011. "The rural growth trifecta: outdoor amenities, creative class and entrepreneurial context -super-�," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 529-557, May.
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    13. Michael Fritsch & Pamela Mueller, 2004. "Regional Growth Regimes Revisited - The Case of West Germany," Papers on Entrepreneurship, Growth and Public Policy 2004-04, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    14. Giuseppe Arbia & Roberto Basile & Gianfranco Piras, 2005. "Using Spatial Panel Data in Modelling Regional Growth and Convergence," ISAE Working Papers 55, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    15. McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economics Reports 33955, United States Department of Agriculture, Economic Research Service.
    16. Bernard Fingleton, 2008. "A generalized method of moments estimator for a spatial model with moving average errors, with application to real estate prices," Empirical Economics, Springer, vol. 34(1), pages 35-57, February.
    17. Wojan, Timothy R. & McGranahan, David A., 2007. "Ambient Returns: Creative Capital's Contribution to Local Manufacturing Competitiveness," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), April.
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