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Do Local Factors Explain Local Employment Growth? Evidence from Canada, 1971-2001

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  • Richard Shearmur
  • Mario Polese

Abstract

Shearmur R. and Polese M. (2007) Do local factors explain local employment growth? Evidence from Canada, 1971-2001, Regional Studies 41, 453-471. Why does employment grow in one region and not in another? This basic question underpins a substantial proportion of research in regional science and economic geography, and a wide variety of approaches have been deployed to explore it. These approaches can be divided into two broad and complementary categories. On the one hand, large-scale processes such as agglomeration economies, the concentration of high-order functions, access to markets, and cost-minimizing behaviour have been called upon to explain the patterns. On the other hand, detailed examination of the characteristics of each region has been undertaken: employment growth has been attributed to the presence in growing regions of certain factors. This paper presents a simple model of regional employment growth that draws upon the two approaches. It is concluded that the paper's model is a good predictor of employment growth across Canada, and that both local (endogenous) and structural (exogenous) factors retain significant explanatory power, though in most periods it is structural factors that dominate. The effect of these factors on employment growth varies across time periods and is scale-dependent; therefore, even though the model can account adequately for employment growth across space, it serves to emphasize that there is no straightforward and unique approach to employment creation and retention at the local level. Shearmur R. et Polese M. (2007) Les facteurs locaux, expliquent-ils la croissance de l'emploi local? etude de cas du Canada de 1971 a 2001, Regional Studies 41, 453-471. Pourquoi l'emploi augmente-t-il dans une region et non pas dans une autre? Cette question fondamentale etaye une proportion non-negligeable de la recherche dans la science regionale et la geographie economique, et une gamme variee d'approches ont ete employees afin de l'etudier. Ces approches se divisent en deux grandes categories complementaires. D'un cote, on fait appel aux processus a grand echelle afin d'expliquer les distributions, tels les economies d'agglomeration, la concentration des fonctions de superieuers, l'acces aux marches et la minimisation des couts. De l'autre cote, on a etudie dans le detail les caracteristiques de chacune des regions: la croissance de l'emploi s'explique par la presence de certains facteurs dans les regions en pleine evolution. Cet article presente un modele simple de croissance de l'emploi regional qui puise dans les deux approches. En guise de conclusion, on affirme que le modele predit avec justesse la croissance de l'emploi a travers le Canada et que les facteurs locaux (endogenes) et structurels (exogenes) sont d'importants facteurs determinants, bien qu'au cours de la plupart des periodes ce soient plutot les facteurs structurels qui l'emportent. L'impact de ces facteurs sur la croissance d'emploi varie selon la periode et l'echelle: bien que le modele explique correctement la croissance d'emploi dans l'espace, il sert aussi a souligner qu'il n'y a pas d'approche simple et unique pour creer et maintenir l'emploi au niveau local. Canada Emploi Developpement endogene Croissance regionale Shearmur R. und Polese M. (2007) Lasst sich lokales Beschaftigungswachstum durch lokale Faktoren erklaren? Belege aus Kanada, 1971-2001, Regional Studies 41, 453-471. Warum wachst das Beschaftigungsniveau in einer Region, nicht jedoch in einer anderen? Diese grundlegende Frage war bereits Thema zahlreicher Studien der Regionalwissenschaft und Wirtschaftsgeografie, und zur Untersuchung wurden die verschiedensten Ansatze verfolgt. Diese Ansatze lassen sich in zwei breite, einander erganzende Kategorien aufteilen. Einerseits wurden Prozesse auf hoher Ebene, wie z. B. die Agglomerationswirtschaft, die Konzentration hochrangiger Funktionen, der Zugang zu Markten und Massnahmen zur Kostendampfung, zur Erklarung dieser Muster herangezogen. Andererseits wurde eine detaillierte Untersuchung der Merkmale der einzelnen Regionen durchgefuhrt, und der Anstieg des Beschaftigungsniveaus wurde bestimmten Faktoren in den von Wachstum gepragten Regionen zugeschrieben. In diesem Beitrag stellen wir ein einfaches Modell des regionalen Beschaftigungswachstums vor, das auf beide Ansatze zuruckgreift. Wir ziehen den Schluss, dass sich unser Modell gut zur Prognose des Beschaftigungswachstums in Kanada eignet und dass sowohl lokalen (endogenen) als auch strukturellen (exogenen) Faktoren eine wichtige Rolle zur Erklarung zukommt, wenn auch in den meisten Perioden die strukturellen Faktoren uberwiegen. Die Auswirkung dieser Faktoren auf das Beschaftigungswachstum fallt je nach Zeitperiode unterschiedlich aus und hangt vom Massstab ab. Aus diesem Grund eignet sich das Modell zwar hinreichend fur das Beschaftigungswachstum in verschiedenen Gebieten, doch zugleich macht es deutlich, dass es keinen einzelnen, einfachen Ansatz zur Schaffung und zum Erhalt von Arbeitsplatzen auf lokaler Ebene gibt. Kanada Beschaftigung Endogene Beschaftigung Regionales Wachstum Shearmur R. y Polese M. (2007) ¿Ilustran los factores locales el crecimiento de empleo local? El ejemplo de Canada, 1971-2001, Regional Studies 41, 453-471. ¿Por que el empleo crece en una region y no en otra? Esta pregunta basica constituye una parte importante de la investigacion sobre ciencia regional y geografia economica y para analizarla se han propuesto toda una serie de planteamientos. Podemos dividir estos planteamientos en dos categorias amplias y complementarias. Por una parte, se han utilizado los procesos a gran escala tales como las economias de aglomeracion, la concentracion de funciones de altos cargos, el acceso a los mercados y el comportamiento para minimizar costes para explicar estos patrones. Por otra parte, se ha llevado a cabo un examen pormenorizado de las caracteristicas de cada region: el crecimiento de empleo ha sido atribuido a la presencia de ciertos factores en las regiones de crecimiento. En este articulo presentamos un modelo simple de crecimiento de empleo regional que se basa en dos enfoques diferentes. Llegamos a la conclusion de que nuestro modelo es un buen pronostico del crecimiento de empleo en Canada y que tanto los factores locales (endogenos) como los estructurales (exogenos) conservan una importante capacidad explicativa, aunque en la mayoria de periodos dominan los factores estructurales. El efecto de estos factores en el crecimiento de empleo varia segun el tiempo y depende de las escalas. Por tanto, aunque el modelo responda adecuadamente al crecimiento del empleo en el espacio, sirve para recalcar que no existe un enfoque directo y exclusivo para crear empleo y conservarlo a nivel local. Canada Empleo Desarrollo endogeno Crecimiento regional

Suggested Citation

  • Richard Shearmur & Mario Polese, 2007. "Do Local Factors Explain Local Employment Growth? Evidence from Canada, 1971-2001," Regional Studies, Taylor & Francis Journals, vol. 41(4), pages 453-471.
  • Handle: RePEc:taf:regstd:v:41:y:2007:i:4:p:453-471
    DOI: 10.1080/00343400600928269
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    1. Kangasharju, Aki & Pekkala, Sari, 2000. "The Effect Of Aggregate Fluctuations On Regional Economic Disparities In Finland," ERSA conference papers ersa00p26, European Regional Science Association.
    2. Romer, Paul M., 1990. "Human capital and growth: Theory and evidence," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 32(1), pages 251-286, January.
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