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Measuring the Effects of Changing Structure on Employment Generation Potential

Author

Listed:
  • David Henderson

    (Industry Department for Scotland, Edinburgh EHJ 37A Scotland)

  • Peter G. McGregor

    (Fraser of Allander Institute, University of Strathclyde, Glasgow G4 OLN Scotland)

  • Iain H. McNicoll

    (Fraser of Allander Institute, University of Strathclyde, Glasgow G4 OLN Scotland)

Abstract

This article describes a method for examining components of structural change in an open economy. A distinguishing characteristic of the method is that changes in external trade behavior are explicitly recognized as a separate component of structural change. The method is utilized to examine the effects of structural change on employment-generating potential in Scotland between 1973 and 1979. Overall, employment generation potential (employment multipliers per unit final demand) fell over the six-year period. Changes in import propensities and employment/output coefficients both led to reductions, but the negative contributions of these components were partially offset by increased use of intermediate inputs. For a number of industries, the changes in employment generation potential and the contributions of the individual components differed substantially from the Scottish average.

Suggested Citation

  • David Henderson & Peter G. McGregor & Iain H. McNicoll, 1989. "Measuring the Effects of Changing Structure on Employment Generation Potential," International Regional Science Review, , vol. 12(1), pages 57-65, April.
    • Handle: RePEc:sae:inrsre:v:12:y:1989:i:1:p:57-65
    DOI: 10.1177/016001768901200104
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    References listed on IDEAS

    as
    1. McNicoll, I H & Rees, J, 1982. "Intertemporal Stability in Small Area Input-Output Coefficients," Scottish Journal of Political Economy, Scottish Economic Society, vol. 29(2), pages 192-205, June.
    2. Theil, Henri & Gosh, Riddhi, 1980. "A comparison of shift-share and the RAS adjustment," Regional Science and Urban Economics, Elsevier, vol. 10(2), pages 175-180, June.
    3. Conway, Richard Jr., 1980. "Changes in regional input-output coefficients and regional forecasting," Regional Science and Urban Economics, Elsevier, vol. 10(1), pages 153-171, March.
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    Cited by:

    1. Paul B. Siegel & Jeffrey Alwang & Thomas G. Johnson, 1995. "Decomposing Sources of Regional Growth with an Input-output Model: A Framework for Policy Analysis," International Regional Science Review, , vol. 18(3), pages 331-353, July.
    2. Ann R. Markusen & Helzi Noponen & Karl Driessen, 1991. "International Trade, Productivity, and U.S. Regional Job Growth: A Shift-Share Interpretation," International Regional Science Review, , vol. 14(1), pages 15-39, April.

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