Advanced Search
MyIDEAS: Login

Spatial autocorrelation in employment-output relation

Contents:

Author Info

  • Sanna-Mari Ahtonen

    ()

Registered author(s):

    Abstract

    This study reconsiders the employment-output relation in Finland from a spatial econometric perspective. Spatial econometric methods provide new insights on the regional employment-output relation. They make it possible to examine whether output growth or employment growth in neighboring regions affects employment growth in a particular region. Especially, the interest in this study is aimed at the Finnish growth centers? (the capital region Helsinki, Turku, Tampere, Oulu and Jyväskylä) impacts on their neighborhoods, which is related to the regional economic theories on agglomeration economies and spillover effects. There is inter-action in trade, capital flows, migration and in diffusion of innovations and knowledge. Thus, it makes sense to consider the employment growth in regions as dependent on other regions and interactive with them. NUTS4-level output and employment data from 1988 to 2000 are used in the analyses. The investigation period includes the era of rapid employment growth of the late 1980s, a dra-matic decline in employment and output in the early 1990s and the years of a recovery in the mid 1990s. The whole period is divided in five groups: 1988-1990, 1990-1993, 1993-1996, 1996-1998 and 1998-2000. Regional development in Finland separated during the years after the recession - rapid growth was concentrated on few centers while growth in many regions remained still very slow, even negative. In addition, it has been argued that economic growth produced more employment before the recession than has been doing after it. A basic cross-sectional model and three spatial dependence models (a spatial error, a spatial lag and a spatial cross-regressive model) for the employment-output relation are formed in different periods and compared with each other. The results received by the data on the growth centers and their neighbors are also compared with the results received by the whole data. It is investigated whether there are differences in the employment-output relation be-tween the growth centers and the whole country and whether spatial dependencies in the rela-tion are different in the growth centers and their neighborhoods than elsewhere. In addition, the local Moran analysis for spatial autocorrelation both in employment and output variables is carried out. This measure provides insights into possible high growth or low growth clus-ters and into developments of these clusters during the time.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa03/cdrom/papers/209.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa03p209.

    as in new window
    Length:
    Date of creation: Aug 2003
    Date of revision:
    Handle: RePEc:wiw:wiwrsa:ersa03p209

    Contact details of provider:
    Postal: Welthandelsplatz 1, 1020 Vienna, Austria
    Web page: http://www.ersa.org

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Fredriksson, Peter, 1999. "The Dynamics of Regional Labor Markets and Active Labor Market Policy: Swedish Evidence," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 623-48, October.
    2. Luc Anselin & Rosina Moreno, 2001. "Properties of tests for spatial error components," ERSA conference papers ersa01p183, European Regional Science Association.
    3. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
    4. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
    5. Petri Böckerman & Mika Maliranta, 2001. "Regional disparities in gross job and worker flows in Finland," Finnish Economic Papers, Finnish Economic Association, vol. 14(2), pages 84-103, Autumn.
    6. David W. Hughes & David W. Holland, 1994. "Core-Periphery Economic Linkage: A Measure of Spread and Possible Backwash Effects for the Washington Economy," Land Economics, University of Wisconsin Press, vol. 70(3), pages 364-377.
    7. Aki Kangasharju & Jaakko Pehkonen, 2001. "Employment-output link in Finland : evidence from regional data," Finnish Economic Papers, Finnish Economic Association, vol. 14(1), pages 41-50, Spring.
    8. Robert J. Gordon, 1993. "The Jobless Recovery: Does It Signal a New Era of Productivity-led Growth?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1), pages 271-316.
    9. Kangasharju, Aki & Pehkonen, Jaakko, 1999. "Employment-output link in Finland: evidence from regional-level data," ERSA conference papers ersa99pa304, European Regional Science Association.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa03p209. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.