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A Multi-Sector Export Base Model of Long-Run Regional Employment Growth

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  • Lego, Brian
  • Gebremedhin, Tesfa
  • Cushing, Brian

Abstract

The relationships between intersectoral export and local employment and regional economic growth are analyzed in a long-run equilibrium framework. Dynamic location quotients decompose regional employment into export and local components for multiple sectors. Johansen's Full-Information Maximum Likelihood (FIML) approach is used to identify the existence and resultant rank of the co-integrating relationship between sectoral export and local employment in West Virginia's four metropolitan areas. Empirical results indicate inter-sectoral basic and non-basic employment form a co-integrating system of equations. Furthermore, this analysis shows that inter-sector shocks to local and export employment may cause multipliers to be positive or negative in magnitude.

Suggested Citation

  • Lego, Brian & Gebremedhin, Tesfa & Cushing, Brian, 2000. "A Multi-Sector Export Base Model of Long-Run Regional Employment Growth," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(2), pages 192-197, October.
    • Handle: RePEc:cup:agrerw:v:29:y:2000:i:02:p:192-197_00
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    Cited by:

    1. Sorenson, David J., 2007. "Assessing Economic Base Relationships in South Dakota," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-18.
    2. Elena G. Irwin & Andrew M. Isserman & Maureen Kilkenny & Mark D. Partridge, 2010. "A Century of Research on Rural Development and Regional Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 522-553.
    3. Maureen Kilkenny & Mark D. Partridge, 2009. "Export Sectors and Rural Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 910-929.
    4. Park JiYoung & Gordon Peter & Jun Eunha & Moore James E & Richardson Harry W., 2009. "Identifying the Regional Economic Impacts of 9/11," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 15(2), pages 275-306, July.
    5. Christopoulos, Dimitris & McAdam, Peter & Tzavalis, Elias, 2018. "Dealing with endogeneity in threshold models using copulas: an illustration to the foreign trade multiplier," Working Paper Series 2136, European Central Bank.
    6. Jens Abildtrup & Virginie Piguet & Bertrand Schmitt, 2011. "The impact of agro-food industry on employment and population changes: The case of Denmark and France'," ERSA conference papers ersa10p1622, European Regional Science Association.

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