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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. Falch, Torberg & Rattso, Jorn, 1997. "Political economic determinants of school spending in federal states: Theory and time-series evidence," European Journal of Political Economy, Elsevier, vol. 13(2), pages 299-314, May.
  2. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  3. Duffy-Deno, Kevin T. & Eberts, Randall W., 1991. "Public infrastructure and regional economic development: A simultaneous equations approach," Journal of Urban Economics, Elsevier, vol. 30(3), pages 329-343, November.
  4. 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.
  5. David J. Lewis & Gary L. Hunt & Andrew J. Plantinga, 2003. "Does Public Lands Policy Affect Local Wage Growth?," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 34(1), pages 64-86.
  6. 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.
  7. Thomas Aronsson & Johan Lundberg & Magnus Wikstrom, 2001. "Regional Income Growth and Net Migration in Sweden, 1970-1995," Regional Studies, Taylor & Francis Journals, vol. 35(9), pages 823-830.
  8. Kelly D. Edmiston, 2004. "The Net Effects of Large Plant Locations and Expansions on County Employment," Journal of Regional Science, Wiley Blackwell, vol. 44(2), pages 289-320.
  9. 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.
  10. Michael Fritsch & Oliver Falck, 2003. "New Firm Formation by Industry over Space and Time: A Multi-Level Analysis," Discussion Papers of DIW Berlin 322, DIW Berlin, German Institute for Economic Research.
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