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The Impact Of Automobile Production On The Growth Of Non-Farm Proprietor Densities In Alabama'S Counties



    () (Auburn University)


    (Auburn University)


This paper studies the impact of the auto industry on the growth of non-farm proprietor densities in Alabama¡¯s counties. Results show that automobile production in Alabama significantly increases non-farm proprietor in all counties. The impact of automobile production on the growth of non-farm proprietor densities in distressed black belt counties is greater than other counties. Then, appropriate policies to lure industrial development become very important to increase the self employment opportunity. There is significant spatial lag effects and spatial error effects between non-farm proprietor densities and per capita income.

Suggested Citation

  • Sooriyakumar Krishnapillai & Henry Kinnucan, 2012. "The Impact Of Automobile Production On The Growth Of Non-Farm Proprietor Densities In Alabama'S Counties," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(3), pages 25-46, September.
  • Handle: RePEc:jed:journl:v:37:y:2012:i:3:p:25-36

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    References listed on IDEAS

    1. Baltagi, Badi H. & Song, Seuck Heun & Koh, Won, 2003. "Testing panel data regression models with spatial error correlation," Journal of Econometrics, Elsevier, vol. 117(1), pages 123-150, November.
    2. Kelejian, Harry H. & Prucha, Ingmar R., 2004. "Estimation of simultaneous systems of spatially interrelated cross sectional equations," Journal of Econometrics, Elsevier, vol. 118(1-2), pages 27-50.
    3. Stephan Goetz & Anil Rupasingha, 2009. "Determinants of growth in non-farm proprietor densities in the US, 1990–2000," Small Business Economics, Springer, vol. 32(4), pages 425-438, April.
    4. Stephan J. Goetz & David Freshwater, 2001. "State-Level Determinants of Entrepreneurship and a Preliminary Measure of Entrepreneurial Climate," Economic Development Quarterly, , vol. 15(1), pages 58-70, February.
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    More about this item


    : Automobile Production; Non-Farm Proprietor Densities; Spatial Dependence; Generalized Spatial Three Stage Least Square; Generalized Method of Moments;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)


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