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The Role Of Federal Military Spending In The Timing Of The New England Employment Turnaround

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  • Richard A. Barff
  • Prentice L. Knight

Abstract

ABSTRACT This paper examines the role of military spending in the recent economic revival of New England, particularly the region's turnaround in employment growth. The long‐term re structuring of New England's economy after World War II in terms of industry mix and labor costs positioned the region for a turnaround. We argue that the precipitating factor in the liming of the was the significant increase starling in the late 1970s in federal military purchases of durable goods from [lie region's high‐technology manufacturing industry. New England benefited disproportionately from the military buildup because of the region's concentration in high‐technology manufacturing industries producing defense‐related goods. The labor‐intensive nature of high‐technology industry has resulted in a large portion of the money received from defense purchases going to labor and producing important regional multiplier effects in sectors other than manufacturing.

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  • Richard A. Barff & Prentice L. Knight, 1988. "The Role Of Federal Military Spending In The Timing Of The New England Employment Turnaround," Papers in Regional Science, Wiley Blackwell, vol. 65(1), pages 151-166, January.
    • Handle: RePEc:bla:presci:v:65:y:1988:i:1:p:151-166
    DOI: 10.1111/j.1435-5597.1988.tb01163.x
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    Cited by:

    1. B Ó Huallacháin, 1990. "The Location of US Manufacturing: Some Empirical Evidence on Recent Geographical Shifts," Environment and Planning A, , vol. 22(9), pages 1205-1222, September.
    2. Roger Bivand & Jon M. Steineke, 1998. "Dynamic externalities and regional manufacturing development: An exploration of the Polish experience before and after 1989," ERSA conference papers ersa98p271, European Regional Science Association.
    3. Knudsen, Daniel C., 2000. "Shift-share analysis: further examination of models for the description of economic change," Socio-Economic Planning Sciences, Elsevier, vol. 34(3), pages 177-198, September.
    4. Cletus C. Coughlin & Thomas B. Mandelbaum, 1989. "Have federal spending and taxation contributed to the divergence of state per capita incomes in the 1980s?," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 29-42.
    5. David A. Plane, 1989. "Population Migration and Economic Restructuring in the United States," International Regional Science Review, , vol. 12(3), pages 263-280, December.
    6. B Harrison & J Kluver, 1989. "Reassessing the ‘Massachusetts Miracle’: Reindustrialization and Balanced Growth, or Convergence to ‘Manhattanization’?," Environment and Planning A, , vol. 21(6), pages 771-801, June.
    7. Rebhun, Uzi, 2002. "Directions, Magnitude, and Efficiency of Interregional Migration, 1970-1990: Jews and Whites in the United States Compared," The Review of Regional Studies, Southern Regional Science Association, vol. 32(1), pages 37-68, Winter/Sp.

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