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Employment and Population in European Union: Econometric Models and Causality Tests

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  • Aguayo, Eva

    ()

  • Guisan, Maria-Carmen

    ()

Abstract

We analyse the interdependence between non-agrarian employment, real value-added and population in 98 European regions, by means of a pool of data for the period 1985-1995, and in 5 EU countries with a pool for 1961-97. We test causality by means of Hausman´s test in these three equations models. Besides we test causality by means of Granger´s test and with time series of each country for 1961-2000. The main conclusion is that there is some degree of interdependence among the three variable: 1) Population moves towards employment. 2) Production increases with population and with social and institutional factors (human capital and other ones). 3) Employment increases with production and population.. The results agree with the Freeman´s conclusions for regional employment and population movements in the USA.

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Bibliographic Info

Paper provided by University of Santiago de Compostela. Faculty of Economics and Business. Econometrics. in its series Economic Development with number 80.

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Date of creation: 2004
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Handle: RePEc:eaa:ecodev:80

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Related research

Keywords: Causality tests; Models of Employment and Population; Models of Employment and Production; European Economic; Regional Development;

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  1. Nakamura, Alice & Nakamura, Masao, 1981. "On the Relationships among Several Specification Error Tests Presented by Durbin, Wu, and Hausman," Econometrica, Econometric Society, vol. 49(6), pages 1583-88, November.
  2. Laurence Nayman & Deniz Unal-Kesenci, 2001. "The French-German Productivity Comparison Revisited: Ten Years after the German Unification," Working Papers 2001-14, CEPII research center.
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  1. Guisan, M.C. & Aguayo, E., 2007. "Production By Sector In The European Union: Analysis Of France, Germany, Italy, Spain, Poland And The United Kingdom, 2000-2005," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 7(1), pages 33-46.
  2. Guisan, M.C. & Aguayo, E., 2004. "Employment, Population and Regional Development in Western and Central Europe. Econometric Models and Challenges of EU Enlargement," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2), pages 129-142.

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