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An Empirical Analysis of Employment, Migration, Local Public Services and Regional Income Growth in Appalachia

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Author Info

  • Gebremeskel Gebremariam

    ()
    (Department of Economics, Virginia Tech)

  • Tesfa Gebremedhin

    ()
    (Regional Research Institute, West Virginia University)

  • Peter Schaeffer

    ()
    (Division of Resource Management, West Virginia University)

  • Randall Jackson

    ()
    (Regional Research Institute, West Virginia University)

  • Tim Phipps

    ()
    (Division of Resource Management, West Virginia University)

Abstract

This study develops a five-equation simultaneous system in a partial lag-adjustment growth-equilibrium framework. It improved previous models in the growth-equilibrium tradition by explicitly modeling local government and regional income in the growth process. It also explicitly modeled gross in-migration and gross out-migration separately in order to spell out the differential effects. The results show the existence of feedback simultaneities among the endogenous variables of the model. This finding is important from economic policy perspective because it indicates that sector specific policies should be integrated and harmonized in order to achieve the desirable outcome. Under this circumstance, looking at the direct plus indirect impacts of a change in a given policy is important.

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File URL: http://rri.wvu.edu/wp-content/uploads/2012/11/wp2007-10.pdf
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Bibliographic Info

Paper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 200710.

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Length: 50 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:rri:wpaper:200710

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Web page: http://rri.wvu.edu/research/working-papers/
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Related research

Keywords: regional development; simultaneous equations; growth; migration;

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  1. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  2. Russell Davidson & James G. MacKinnon, 1981. "Tests for Model Specification in the Presence of Alternative Hypotheses: Some Further Results," Working Papers 430, Queen's University, Department of Economics.
  3. Greenwood, Michael J. & Hunt, Gary L., 1989. "Jobs versus amenities in the analysis of metropolitan migration," Journal of Urban Economics, Elsevier, vol. 25(1), pages 1-16, January.
  4. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
  5. Kevin T. Duffy-Deno & Randall W. Eberts, 1989. "Public infrastructure and regional economic development: a simultaneous equations approach," Working Paper 8909, Federal Reserve Bank of Cleveland.
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