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Estimation of Local Employment Growth: Do Sectoral Aggregation and Industry Definition Matter?

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  • Francesca Mameli
  • Alessandra Faggian
  • Philip Mccann

Abstract

Mameli F., Faggian A. and McCann P. Estimation of local employment growth: do sectoral aggregation and industry definition matter?, Regional Studies . Over the last two decades, numerous attempts have been made to explain the determinants of local growth, with as yet little overall consensus. The aim of this paper is to reveal a potential problem of parameter heterogeneity in growth regressions associated with the use of data at different levels of aggregation. Using Italian data and focusing on both manufacturing and service industries, it is shown how different empirical outcomes can be generated from exactly the same spatial units simply by changing the levels of sectoral aggregation. Moreover, the results point to some advantages associated with using more disaggregated data.

Suggested Citation

  • Francesca Mameli & Alessandra Faggian & Philip Mccann, 2014. "Estimation of Local Employment Growth: Do Sectoral Aggregation and Industry Definition Matter?," Regional Studies, Taylor & Francis Journals, vol. 48(11), pages 1813-1828, November.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:11:p:1813-1828
    DOI: 10.1080/00343404.2012.756578
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    Cited by:

    1. Syed Hasan & Alessandra Faggian & H. Allen Klaiber & Ian Sheldon, 2018. "Agglomeration Economies or Selection? An Analysis of Taiwanese Science Parks," International Regional Science Review, , vol. 41(3), pages 335-363, May.
    2. Niccolò Innocenti & Daniele Vignoli & Luciana Lazzeretti, 2021. "Economic complexity and fertility: insights from a low fertility country," Regional Studies, Taylor & Francis Journals, vol. 55(8), pages 1388-1402, August.
    3. Niccolò Innocenti & Luciana Lazzeretti, 2018. "Relatedness and growth: The impact of creative industries to the wider economy," Papers in Evolutionary Economic Geography (PEEG) 1819, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2018.
    4. Federica Rossi & Magdalena Dej, 2020. "Where do firms relocate? Location optimisation within and between Polish metropolitan areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(3), pages 615-640, June.
    5. Roberto Ercole & Robert O'neill, 2017. "The Influence of Agglomeration Externalities on Manufacturing Growth Within Indonesian Locations," Growth and Change, Wiley Blackwell, vol. 48(1), pages 91-126, March.
    6. Vanessa Hellwig, 2023. "Digital gravity? Firm birth and relocation patterns of young digital firms in Germany," Journal of Regional Science, Wiley Blackwell, vol. 63(2), pages 340-378, March.
    7. Carlos Carreira & Luís Lopes, 2020. "How are the potential gains from economic activity transmitted to the labour factor: more employment or more wages? Evidence from the Portuguese context," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(2), pages 319-348, April.
    8. Elias Giannakis & Adriana Bruggeman, 2017. "Economic crisis and regional resilience: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 96(3), pages 451-476, August.
    9. Daniele Mantegazzi & Philip McCann & Viktor Venhorst, 2020. "The impact of language borders on the spatial decay of agglomeration and competition spillovers," Journal of Regional Science, Wiley Blackwell, vol. 60(3), pages 558-577, June.
    10. Cui Zhang, 2017. "Top manager characteristics, agglomeration economies and firm performance," Small Business Economics, Springer, vol. 48(3), pages 543-558, March.
    11. MASSIANI, Jérôme, 2022. "Computable General Equilibrium assessment of mega-events: Issues and possible solutions," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 920-942.

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