IDEAS home Printed from https://ideas.repec.org/a/mgt/youmgt/v20y2022i4p401-431.html
   My bibliography  Save this article

The Effect of Spatial Unemployment on the Neighbouring Regions’ Economies: A Regional Case Study of KwaZulu-Natal in South Africa

Author

Listed:
  • Clive Egbert Coetzee

    (Stellenbosch University, South Africa)

  • Ewert P. J. Kleynhans

    (North-West University, South Africa)

  • Ewert P. J. Kleynhans

    (North-West University, South Africa)

Abstract

This article investigates the degree of spatial dependence of unemployment on neighbouring economies with possible implications for cross-border community development initiatives. The local municipalities within the KwaZulu-Natal province in South Africa are used as a case study. Spatial econometric techniques are employed that incorporate dependence between regions in close geographical proximity. Disaggregated data and knowledge about the dynamics at a sub-regional level are usually unavailable for designing employment policies, especially for regional economies in under-developed countries. The results suggest an absence of spatial unemployment clustering and autocorrelation between neighbouring economies. The absence of externalities implies that little mutual dependence exists between adjacent economies, and therefore municipal unemployment patterns can be viewed as spatially random. The economy of a region is therefore fundamentally heterogeneous in that its unemployment rates are determined and influenced by its unique and diverse factors rather than neighbouring unemployment trends or patterns.

Suggested Citation

  • Clive Egbert Coetzee & Ewert P. J. Kleynhans & Ewert P. J. Kleynhans, 2022. "The Effect of Spatial Unemployment on the Neighbouring Regions’ Economies: A Regional Case Study of KwaZulu-Natal in South Africa," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 20(4 (Winter), pages 401-431.
    • Handle: RePEc:mgt:youmgt:v:20:y:2022:i:4:p:401-431
    DOI: 10.26493/1854-6935.20.401-431
    as

    Download full text from publisher

    File URL: https://www.hippocampus.si/ISSN/1854-6935/20.401-431.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.26493/1854-6935.20.401-431?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lochner Marais & Jan Cloete, 2017. "The role of secondary cities in managing urbanisation in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 34(2), pages 182-195, March.
    2. Wouter Vermeulen, 2017. "Agglomeration externalities and urban growth controls," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 59-94.
    3. James Lesage & Manfred Fischer, 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 275-304.
    4. Samba Diop, 2018. "Convergence and Spillover Effects in Africa: A Spatial Panel Data Approach," Journal of African Economies, Centre for the Study of African Economies, vol. 27(3), pages 274-284.
    5. Jörg Breitung & Christoph Wigger, 2018. "Alternative GMM estimators for spatial regression models," Spatial Economic Analysis, Taylor & Francis Journals, vol. 13(2), pages 148-170, April.
    6. Nebojša Stojčić & Edvard Orlić, 2020. "Spatial dependence, foreign investment and productivity spillovers in new EU member states," Regional Studies, Taylor & Francis Journals, vol. 54(8), pages 1057-1068, July.
    7. Valentina Meliciani & Maria Savona, 2015. "The determinants of regional specialisation in business services: agglomeration economies, vertical linkages and innovation," Journal of Economic Geography, Oxford University Press, vol. 15(2), pages 387-416.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chocholatá Michaela & Furková Andrea, 2017. "Regional Disparities in Education Attainment Level in the European Union: A Spatial Approach," TalTech Journal of European Studies, Sciendo, vol. 7(2), pages 107-131, October.
    2. Tomasz Kijek & Anna Matras-Bolibok, 2020. "Knowledge-intensive Specialisation and Total Factor Productivity (TFP) in the EU Regional Scope," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 181-188.
    3. Uwaoma G. Nwaogu & Michael J. Ryan, 2015. "FDI, Foreign Aid, Remittance and Economic Growth in Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 19(1), pages 100-115, February.
    4. Liv Osland & Inge Thorsen, 2013. "Spatial Impacts, Local Labour Market Characteristics and Housing Prices," Urban Studies, Urban Studies Journal Limited, vol. 50(10), pages 2063-2083, August.
    5. Francesca Mameli & Simona Iammarino & Ron Boschma, 2012. "Regional variety and employment growth in Italian labour market areas: services versus manufacturing industries," Papers in Evolutionary Economic Geography (PEEG) 1203, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2012.
    6. Geerte Cotteleer & Tracy Stobbe & G. Cornelis van Kooten, 2011. "Bayesian Model Averaging In The Context Of Spatial Hedonic Pricing: An Application To Farmland Values," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 540-557, August.
    7. Brada, Josef C. & Gajewski, Paweł & Kutan, Ali M., 2021. "Economic resiliency and recovery, lessons from the financial crisis for the COVID-19 pandemic: A regional perspective from Central and Eastern Europe," International Review of Financial Analysis, Elsevier, vol. 74(C).
    8. Olga Demidova & Tatiana Bukina & Natalia Sverchkova, 2015. "Dependence of spatial effects on the level of regional aggregation, weights matrix, and estimation method," ERSA conference papers ersa15p322, European Regional Science Association.
    9. Manfred Fischer, 2011. "A spatial Mankiw–Romer–Weil model: theory and evidence," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 419-436, October.
    10. Bev Wilson & Mallory L. Rahe, 2016. "Rural prosperity and federal expenditures, 2000–2010," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(1-2), pages 3-26, March.
    11. Albouy, David & Behrens, Kristian & Robert-Nicoud, Frédéric & Seegert, Nathan, 2019. "The optimal distribution of population across cities," Journal of Urban Economics, Elsevier, vol. 110(C), pages 102-113.
    12. Panagiotis KOUDOUMAKIS & George BOTZORIS & Angelos PROTOPAPAS, 2021. "The Contribution Of Cohesion Policy To The Development And Convergence Of The Regions Of The European Union," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 277-290, June.
    13. Mohl, Philipp & Hagen, Tobias, 2011. "Do EU structural funds promote regional employment? Evidence from dynamic panel data models," Working Paper Series 1403, European Central Bank.
    14. Kuschnig, Nikolas, 2021. "Bayesian Spatial Econometrics and the Need for Software," Department of Economics Working Paper Series 318, WU Vienna University of Economics and Business.
    15. Castagna, Alina & Chentouf, Leila & Ernst, Ekkehard, 2017. "Economic vulnerabilities in Italy: A network analysis using similarities in sectoral employment," GLO Discussion Paper Series 50, Global Labor Organization (GLO).
    16. Philipp Piribauer & Jesús Crespo Cuaresma, 2016. "Bayesian Variable Selection in Spatial Autoregressive Models," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(4), pages 457-479, October.
    17. Piotr Ciżkowicz & Magda Ciżkowicz-Pękała & Piotr Pękała & Andrzej Rzońca, 2017. "The effects of special economic zones on employment and investment: a spatial panel modeling perspective," Journal of Economic Geography, Oxford University Press, vol. 17(3), pages 571-605.
    18. Daniel Albalate & Germà Bel & Ferran A. Mazaira‐Font, 2022. "Geography and regional economic growth: The high cost of deviating from nature," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 360-388, March.
    19. Ragdad Cani Miranti, 2021. "Is regional poverty converging across Indonesian districts? A distribution dynamics and spatial econometric approach," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 851-883, October.
    20. Nan, Shijing & Huo, Yuchen & You, Wanhai & Guo, Yawei, 2022. "Globalization spatial spillover effects and carbon emissions: What is the role of economic complexity?," Energy Economics, Elsevier, vol. 112(C).

    More about this item

    Keywords

    regional unemployment; labour; spatial regression models; spatial dependence; regional impact and influence; neighbours; spatial weights; spatially lagged dependent variables; spatial autocorrelation;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mgt:youmgt:v:20:y:2022:i:4:p:401-431. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alen Jezovnik (email available below). General contact details of provider: https://edirc.repec.org/data/fmkupsi.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.